Pinnacle Appealing President Casino License Ruling In Missouri

Pinnacle Entertainment is having enough trouble these days trying to keep their casinos open across the US in the face of the economic recession. Now, the company is heading into a legal battle over a casino license in Missouri.

Pinnacle owns the President Casino in downtown St. Louis, and although the casino is struggling, Pinnacle does not believe the Missouri Gaming Commission had the right to make the President Casino apply for a new casino license.

The commission ruled that the casino would have to re-apply for a new license because Pinnacle wants to replace the current riverboat casino with a new one. Pinnacle, however, believes they have already paid for the rights to the casino license.

In court, lawyers for Pinnacle will argue that the commission has revoked the license that currently belongs to the President Casino. They will also contend that Pinnacle's investment of $45 million that they paid for the license would be forfeited if the ruling was allowed to stand.

The Missouri Court of Appeals will hear the case. The decision to make Pinnacle re-apply comes as no surprise to anyone following the casino gambling developments in Missouri. Only a certain amount of licenses are given out in the state, and if one becomes available there would be a likely bidding war among developers looking to build new casinos.

Pinnacle, if they have to re-apply for the license, may consider just abandoning the struggling President Casino. Revenue has been down since competition has grown and several floods have made the casino close its doors for varying periods of time.

September 26, 2009
Posted By April Gardner
Staff Editor, CasinoGamblingWeb.com
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