Twenty-five Ameristar employees have been laid off in Vicksburg, just months after the casino-hotel-restaurant company unveiled the first phase of a $100 million expansion project here that includes a live poker room, expanded gaming floor, several restaurants and a Starbucks coffee shop.

Las Vegas-based Ameristar blamed a slow economy and stale revenue for the elimination of 244 total positions nationwide – 3 percent of its work force – at its eight properties and corporate headquarters.

“In recent months the company increased promotional activities in an effort to attract more business to our properties. We implemented cost-containment measures to reduce our expenses. However, these efforts simply were not enough to compensate for this very difficult economic environment,” said spokesman Rebecca Theim.

Ameristar, Vicksburg’s largest casino, employs 939 following the reduction, which was announced this week in conjunction with the company’s second quarter report. Theim said the casino continues to hire for open positions in Vicksburg.

“Despite how tough this step was to take, we believe the changes will improve both Ameristar’s financial health and the way the company operates, which will benefit Ameristar’s remaining 8,500 team members,” said Theim.

In addition to the layoffs, Ameristar has shuffled schedules and staffing practices to further reduce the work force by the equivalent of 150 employees, according to its second quarter report. The layoffs and reducing employment through not replacing employees who resign or retire are expected to save Ameristar $20 million annually.

Fiscal year to date revenue through June 30 grew by aboutt $75 million over the year previous, aided chiefly by the September 2007 acquisition of an East Chicago, Ind., property which posted an annual net revenue of $74.5 million. Ameristar reported its net income was $17 million in the second quarter, compared to $17.2 million a year ago. The second quarter report said Ameristar’s market share in Vicksburg grew to 50.6 percent in June, an increase of 2.7 percent over May figures.

On May 23, the Vicksburg casino unveiled an eight-story, 1,000-space parking garage, live poker room and expanded gaming area with 500 additional slot machines. A VIP lounge was completed in July, and two themed restaurants are expected to open this fall. Retail space and a Starbucks are expected to be open by the end of the year. Along with its casino in Vicksburg, Ameristar operates casinos in East Chicago; Kansas City; Black Hawk, Colo.; Council Bluffs, Iowa; Jackpot, Nev.; and St. Charles, Missouri.

It is one of four casino developments along the Mississippi River, all of which opened in 1993 or 1994. A fifth casino-hotel-restaurant complex, Riverwalk, is due to open in October.