Pinnacle agrees to close the President Casino in St. Louis by July 1

Pinnacle to close the President by July 1

ST. LOUIS — After a long battle to keep open the President Casino in St. Louis, Pinnacle Entertainment changed course on Wednesday and agreed to close the aging gambling boat by July 1.

The President’s closure will leave one of just 13 gambling licenses allowed in Missouri up for grabs.

John V. Giovenco, interim CEO for Las Vegas-based Pinnacle, said in a statement that it was “in the best interests of our shareholders and our company to settle this issue. We intend to focus on maximizing shareholder value at Lumiere Place and our new River City Casino.”

Lumiere Place is Pinnacle’s massive downtown casino that sits just a few hundred yards from the President. Lumiere Place had revenue of $181.1 million in 2009; the President’s revenue was $23.3 million — down nearly 50 percent from when Pinnacle purchased it in 2006.

River City is the state’s newest casino and the seventh in the St. Louis area, including two on the Illinois side of the Mississippi River. It opened March 4 in south St. Louis County.

The Missouri Gaming Commission and Pinnacle have been at odds over the future of the President since last year, when the commission ruled that Pinnacle could neither repair nor replace the casino. Commissioners have also complained that Pinnacle was allowing the President to decline so that Lumiere Place could prosper. Pinnacle countered that its proposal to fix up the aging casino demonstrated its commitment.

Just last week, Pinnacle won a court battle over the President. The Missouri Court of Appeals ruled that the commission acted improperly in deciding that Pinnacle could neither repair nor replace the President. The issue was sent back to the Gaming Commission.

Jim Mathewson, chairman of the Gaming Commission, said it was better for Pinnacle to give up the license rather than have it revoked.

“It’s cleaner for everybody,” Mathewson said. “They’re a good corporate citizen for the state of Missouri.”

The number of casinos allowed in Missouri was capped at 13 by a 2008-voter approved law. The vacated license would not have to be used in St. Louis but could be used at any site on the Missouri or Mississippi rivers.

Mathewson said it wasn’t clear when the license would be awarded.

“We will be accepting applications for wherever from the state of Missouri, and will be evaluating those, and that includes Pinnacle,” Mathewson said. “We’re not prohibiting them; in fact, we’d encourage them to do it.”

The President was one of the first casinos in Missouri after the state legalized casino gambling in 1993. It is by far the smallest casino in the St. Louis region, sitting on the century-old Admiral riverboat permanently moored near the Gateway Arch. It is the only casino on a riverboat and directly on the river.

In addition to its age and size, the location of the President has hampered it. Flooding over the past several years has frequently forced temporary closures.

On the Net:

Gaming Commission: www.mgc.dps.mo.gov

Pinnacle: www.pnkinc.com