Isle closes; DiamondJacks waiting to open|[8/1/06]

Published 12:00 am Tuesday, August 1, 2006

Signs sporting the Isle of Capri Casino & Hotel’s Caribbean-themed images have come down as the facility’s new owners awaited a computer upgrade today.

Legends Gaming LLC acquired Vicksburg’s first casino and its sister operation in Bossier City, La., in a $240 million deal and will operate both under the name DiamondJacks Casino and Hotel.

The Washington Street complex shut down Monday, and casino operations will resume as soon as the computer is ready, expected later today, said Kim Tullos, general manager for the Isle who is continuing in that role for the new owners.

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The cash deal is still subject to closing adjustments, a company release said. The purchase includes all the Isle’s property in Vicksburg except the human resources and training center south of the river bridges, said Michael E. Kelly, Legends president and chief executive officer, this morning. The site is the former Jett School property. The company plans to keep all 525 employees.

The same transition has been in progress in Bossier City, about 175 miles west of Vicksburg on Interstate 20.

In August 1993, the Iowa-based Isle of Capri was the first casino to open here, floating down an actual excursion boat and barge from the Davenport area. Since, the company added more permanent structures, including a casino that floats inside a permanent cofferdam and other buildings, including its hotel.

The sale was announced in February and approved by state regulators last month. The Isle will continue to own and operate casinos in Biloxi, which was its first Mississippi location, and in Lula and Natchez.

Legends owners indicated a big launch in January 2007 and renovations and other changes before then, including changes to accommodate 24,000 square feet of gaming space with 809 slot machines and 20 table games.

A complete revamp of the restaurant, Farradday’s, is also under way. It will be renamed DJs Steakhouse, with Calypso’s buffet becoming Legends Buffet.

The motif there is to feature darker colors along the walls and seating, Legends officials have said.

Legends formed as a company in 2004.

While the Isle was the first to open under Mississippi’s 1990 law that allowed local option votes on casinos along the Mississippi River and Gulf Coast, it is the second of the four here to be sold. In 2003, Harrah’s sold its Vicksburg operation in the downtown area to Kentucky-based Columbia-Sussex Corporation and renamed Horizon Vicksburg Casino & Hotel.

Ameristar Casino opened in February 1994 and Rainbow Casino in July 1994.

Together, casinos here generate more than $200 million in gross gaming revenue for their owners and pay approximately $7 million in city taxes, $3 million in school taxes, $3 million in county taxes and $16 million in state taxes per year.

Plans for three more casinos are at varying stages, with none having begun construction.

The 40-acre site of Mississippi Bluffs Development LLC was approved by state regulators July 20, a week after winning approval from the city Board of Zoning and Appeals.

Lakes Gaming Mississippi LLC received site approval in February 2005 and its development plan OK’d in July 2005. Its site approval expires Feb. 16, 2007.

The Lakes casino is expected to cost about $200 million and is planned to be built on pilings along the Mississippi River near Meadow Lane.

The other, Riverwalk Casino, received its site approval in July 2005 and its development plan approved in December 2005. Its site approval expires July 14, 2007.

The Riverwalk casino is a $42 million development and is to be built on an area of land above the river and north of Rainbow Casino near the Warrenton neighborhood.

Site approval is the first of three phases for licensing casino ventures in Mississippi. The second is a more detailed site development plan. After a group is given two years to do so, it must present a financial package to the commission for approval. A license is then issued.