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Barden's Ind. casino reports 20 percent revenue increase
Friday, June 15, 2007

In Indiana, North Shore casino developer Don Barden finally has some financial results he can cheer about.

Mr. Barden's Majestic Star casinos in Gary reported a 20 percent increase in revenue in May over the same period a year ago, outperforming competitors in the northwest Indiana gambling market.

In addition, Majestic Star's combined monthly gross gambling revenues rose 2.4 percent in May from April, making it the only operator in the market to show an increase in that period.

Frank Fantini, editor and publisher of Fantini's Gaming Report, an industry newsletter which reported the numbers, said the gains suggest that Mr. Barden's Majestic Star operation may be turning the corner after the 2005 acquisition of a struggling casino formerly owned by Donald Trump.

He said Mr. Barden made some changes after the purchase that had a negative impact on business, resulting in revenue losses, but has since brought in new management to turn things around.

"What we're starting to see in the May results is that the situation is starting to normalize again in northwestern Indiana," he said.

The bit of good news follows a dismal period for Majestic Star Casino LLC, which operates the pair of casinos in Gary and single sites in Tunica, Miss., and Black Hawk, Colo.

Majestic Star reported a $4.7 million loss for the first three months of the year, compared with a $3.7 million profit for the same period in 2006. Its revenue also fell 8.9 percent to $91.7 million from $99.9 million a year ago. The company also lost $9.5 million in the last quarter of 2006.

Forest City Enterprises and Isle of Capri Casinos Inc., the losing bidders for the Pittsburgh casino, have used the Majestic Star's financial struggles in their arguments to try to overturn the award of the city's one slots license to Mr. Barden in appeals to the state Supreme Court. The court has yet to rule on those appeals.

Mr, Fantini, however, described the losers' arguments as an "unfair attack on [Mr. Barden's] financial well-being."

For one, Mr. Barden's Pittsburgh company, PITG Gaming LLC, is a separate entity, he said. For another, the fact that the casinos are going through some hard times "doesn't mean the company is in jeopardy."

"Barden through his other financial entities has ample financial resources," he said.

Bob Oltmanns, a PITG Gaming spokesman, said one reason the Indiana casinos lost money at first was that Mr. Barden removed some table games and took other steps to cut costs. He has since beefed up marketing and promotions.

"Now we're seeing the fruits of that investment paying off, just as Mr. Barden predicted they would," he said.


Correction/Clarification: (Published June 16, 2007) Casino developer Don Barden's Majestic Star casinos in Gary, Ind., increased revenue by 20 percent last month compared with May 2006. The headline on this story as originally published June 15, 2007 incorrectly said the complex was turning a profit.

First published on June 14, 2007 at 11:44 pm
Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262.
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