DiamondJacks in bankruptcy, to be sold Current management, employees to stay
Published 11:28 am Thursday, August 2, 2012
DiamondJacks Casino’s parent company intends to sell its casinos in Vicksburg and Bossier City, La., to a group owned by the Chickasaw Nation as part of a Chapter 11 bankruptcy filing.
If approved by the U.S. Bankruptcy Court for the Western District of Louisiana, Oklahoma-based Global Gaming Solutions LLC will own both casinos and other assets, including a 50,000 square-foot warehouse at 2920 Washington St. in Vicksburg. Global is wholly owned by the Chickasaw Nation, based in Ada, Okla. The sale is also subject to approvals from state gaming regulators in Louisiana and Mississippi.
In statements issued in the media Wednesday by Las Vegas-based Legends Gaming, the filing will not prompt job losses for either casino and current management will stay in place. Management at DiamondJacks in Vicksburg and Global Gaming Solutions was not available for comment this morning. DiamondJacks employs 339 people in Vicksburg, according to the Mississippi Gaming Commission.
“Both of our casinos will continue to operate as usual, and we will continue to provide our guests with the same great value and service they have always enjoyed at our properties,” said Raymond Cook, president of Legends, in the statement.
“Our team members are essential to our future success, and should see no difference in their jobs,” said William J. McEnery, the company’s chairman and CEO.
Legends’ debts are primarily business debts and liabilities exceed $100 million, according to court documents.
How long Global would hold each casino after the bankruptcy process ends is unclear. Each would be the Chickasaw’s first casino in either state. Global subsidiaries own Remington Park casino and race track in Oklahoma City and part of Lone Star Park racetrack in Grand Prairie, Texas. Mississippi’s lone Native American-run gaming venue, Pearl River Resort in Neshoba County, is run by the Mississippi Band of Choctaw Indians. It is not required to report revenues to the state.
Those exemptions will not be in effect in Mississippi for DiamondJacks’ riverfront casino in Vicksburg, said Allen Godfrey, executive director of MGC.
“They would be subject to the oversight of the State of Mississippi just like DiamondJacks is (now) and all the tax liabilities would be the same,” he said.
Shares of revenue-based taxes from Vicksburg’s four operating casinos is up this year, due mainly to a flood-free spring. More than $4.6 million in revenue-based taxes has been paid to the city of Vicksburg in fiscal 2012 through June, a figure running slightly ahead of 2011’s overall total. About $2.1 million has been paid to Warren County this year, ahead of last year’s total by $188,926.
DiamondJacks was Vicksburg’s first casino in 1993, when it opened as Isle of Capri. In 2006, it and the casino in Bossier City were sold to privately held Legends, which changed the names of both properties. The company had filed bankruptcy in 2008 to lower interest rates on $215 million in loans secured when the casinos were purchased.
Ameristar, Rainbow and Riverwalk round out Vicksburg’s riverfront casino landscape. A fifth, Grand Station, closed March 28 amid its own bankruptcy, which is still unresolved.