Profits have dropped so much at Osceola's Lakeside Casino and Resort that a Nevada-based company planning to purchase the business announced today that it has reduced its purchase price to $160.8 million.
Herbst Gaming of Las Vegas said in a statement today that it is amending the purchase price at Osceola as a result of "lower than expected recent operating results at Lakeside." How much the purchase price was reduced wasn't disclosed.
Officials with Clarke County Development Corp., the casino's local non-profit partner, said there is no doubt that Lakeside has been hurt significantly by the launching of casino table games, such as blackjack and poker, last month at Prairie Meadows Racetrack and Casino in Altoona.
Lakeside had gross casino revenues in December of $4.7 million, compared to $5.3 million for the same month in 2003, state records show. Clarke County Development officials said they are also concerned about the impact of a $60 million casino expansion at Prairie Meadows approved earlier this week by the Iowa Racing and Gaming Commission.
The Osceola gambling complex is being sold by Southern Iowa Gaming Co., whose founder, William Grace, died last year after a long battle with leukemia.
Lakeside employs about 500 people in Osceola and it generates money for dozens of non-profit community projects in southern Iowa. Herbst
Gaming is still scheduled to assume ownership of Lakeside at 8 a.m. Tuesday, said Kevin Preston, Lakeside's general manager.
He said this morning that Herbst officials are excited about owning the Osceola operation and they plan to make $15 million to $20 million in improvements that are intended to attract more customers to Lakeside.
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