<div id="subtitle">La. regulators OK Pinnacle Entertainment's scaled-back investment in riverboat casino project</div><div><p>A $50 million cut in Pinnacle Entertainment Inc.'s investment in the company's second riverboat casino-hotel project in Lake Charles was approved Tuesday by state gambling regulators.</p><p>Without objection, the Louisiana Gaming Control Board agreed to allow Pinnacle to spend a minimum of $300 million — down from the original $350 million on the Sugarcane Bay project, which is being built next to Pinnacle's L'Auberge Du Lac riverboat casino-hotel.</p><p>Las Vegas-based Pinnacle also agreed to finish the project by the end of June 2011, although company officials said it was possible that gambling could begin earlier.</p><p>Cliff Kortman, Pinnacle's executive vice president for development, said the redesign consisted mostly of configuring the new 400-room hotel so it can share some functions with the existing 1,000-room hotel, such as a check-in area. The reconfigured hotel also will have less restaurant and retail space than previously planned.</p><p>Without substantially changing the project, Pinnacle can increase its rate of return on its investment during financially difficult times, company officials said.</p><p>"What we think we are bringing you is a stronger project than before," said Jack Godfrey, the company's general counsel.</p><p>L'Auberge Du Lac has been a major success for Pinnacle, typically drawing in more winnings from gamblers than any of Louisiana's other 12 riverboat casinos. Although the hotel is nearly filled every weekend, there has been a noticeable drop in weekday business during the economic downturn, Kortman said.</p><p>"People are tightening their belts and not coming as often," Kortman said.</p><p>Pinnacle competes in the Lake Charles market, an attraction to Texas gamblers, with two riverboat casinos operated by Isle of Capri Casinos Inc., the Delta Downs track casino and a popular Indian reservation casino in nearby Kinder.</p><p>The company also is planning to add a third riverboat casino in Baton Rouge. Besides L'Auberge Du Lac, Pinnacle owns the Boomtown casinos in the New Orleans suburb of Harvey and in Bossier City.</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=65491205&bid=informcom" /></div><div id="copyright"><div>

Copyright 2009  <a href="http://www.ap.org">AP News</a></div></div>