Pinnacle Gains Approval In Missouri For Ameristar Casinos Purchase

Pinnacle Entertainment has been negotiating a buyout of fellow US gaming company, Ameristars Casinos Inc., and on Wednesday Pinnacle received good news from Missouri gaming regulators. The gaming commission approved the purchase, opening the door for the deal to be complete.

The gaming industry in the US has been fast-changing in recent years, with dozens of states authorizing new casinos. Pinnacle initially inquired earlier this year into buying Ameristar, and the purchase price of $2.8 billion was agreed upon by both parties.

One of the major hurdles in the process was the Federal Trade Commission, which expressed concern over the areas of the country where Pinnacle would be acquiring Ameristar Casinos. Missouri and Louisiana were the two major markets of concern, with Pinnacle and Ameristar both owning several casinos in these states.

The lack of future competition should all the casinos be run by Pinnacle was a concern, and to alleviate any conflict, Pinnacle agreed to sell one casino of their own, Lumiere Place, and another two other hotels in St. Louis. Additionally, Pinnacle agreed to sell an Ameristar casino resort in Lake Charles, Louisiana.

The approval of the Missouri Gaming Commission on Wednesday gave hope that the FTC will ultimately approve the sale of Ameristar Casinos, Inc.

As states are starting to explore the option of regulated online gambling, several gaming companies, including Pinnacle, have started to either form partnerships, or acquire, other casino companies, with the hope of someday in the near future operating online casinos.

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