LAS VEGAS, NV--(Marketwire -11/16/11)- In anticipation of the legalization of casino gaming in Massachusetts, Ameristar Casinos, Inc. (NASDAQ: ASCA - News) announced today it has entered into a definitive agreement to purchase land in Springfield, Mass., with the intent to apply for the sole casino license for western Massachusetts and, if awarded, build a luxury hotel and entertainment resort.
"This is a great opportunity for Ameristar to build on a one-of-a-kind site within the city limits of Springfield, a city that would greatly benefit from an economic development project of this magnitude," said Gordon Kanofsky, Ameristar's Chief Executive Officer. "There are not many attractive new-market growth opportunities for casino companies, and this one in particular fits squarely within the Ameristar business model as an upscale regional destination casino operator."
Ameristar has agreed to purchase the 41-acre site at Page Boulevard and Interstate 291 for $16 million from an affiliate of the O'Connell Development Group Inc., which had anticipated a large-scale retail project on the site. Since Westinghouse vacated the property in 1970, it had been utilized for light industrial purposes, but more recently had been vacant. The buildings on the site are being razed, and the property will be delivered to Ameristar substantially ready for construction.
Ameristar's development plans are preliminary but are expected to include a state-of-the-art casino continuously updated with the newest and most popular slot machines (a hallmark of the Ameristar brand) and a variety of table games, a luxury hotel, a diverse offering of dining venues, retail outlets, entertainment and meeting space, and structured parking.
"As with all of our other properties, we look forward to partnering with the city and community to ensure our project visually complements the surrounding neighborhood and suitable street improvements are made to accommodate increased traffic in the area," said Kanofsky.
Subject to the satisfactory completion of Ameristar's due diligence, the closing of the purchase is expected to occur in January 2012.
This release contains certain forward-looking information that generally can be identified by the context of the statement or the use of forward-looking terminology, such as "believes," "estimates," "anticipates," "intends," "expects," "plans," "is confident that," "should" or words of similar meaning, with reference to Ameristar or our management. Similarly, statements that describe our future plans, objectives, strategies, financial results or position, operational expectations or goals are forward-looking statements. It is possible that our expectations may not be met due to various factors, many of which are beyond our control, and we therefore cannot give any assurance that such expectations will prove to be correct. For a discussion of relevant factors, risks and uncertainties that could materially affect our future results, attention is directed to "Item 1A. Risk Factors" and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2010, "Item 1A. Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2011 and "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2011.
Ameristar Casinos is an innovative casino gaming company featuring the newest and most popular slot machines. Our 7,500 dedicated team members pride themselves on delivering consistently friendly and appreciative service to our guests. We continuously strive to increase the loyalty of our guests through the quality of our slot machines, table games, hotel, dining and other leisure offerings. Our eight casino hotel properties primarily serve guests from Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Nebraska and Nevada. We have been a public company since 1993, and our stock is traded on the Nasdaq Global Select Market. We generate more than $1 billion in net revenues annually.
Visit Ameristar Casinos' website at www.ameristar.com (which shall not be deemed to be incorporated in or a part of this news release).