LAS VEGAS (AP) — Ameristar Casinos Inc. is buying the developer of a planned casino in Lake Charles, La., from Creative Casinos LLC for $32.5 million.
Ameristar's stock added $1.52, or 7.5 percent, to $21.91 in Wednesday morning trading. Over the past year, the stock has traded in a range of $14.60 to $24.50.
Creative Casinos of Louisiana is the developer of a proposed casino resort in Lake Charles, La. The property will be developed under a lease from the Lake Charles Harbor & Terminal District. It is expected to include a hotel will at least 700 rooms, a casino with about 1,600 slot machines and 60 table games, a golf course, swimming pool, spa, food and beverage options and other amenities.
The casino resort is geared toward people from the Houston metropolitan area, southeastern Texas and southwestern Louisiana.
The transaction needs the approval of the Louisiana Gaming Control Board. The board is set to vote Thursday on whether or not to extend the deadline for Creative to start construction on the property to July 20. It will also vote on certain design changes and other changes that Ameristar wants that it believes will make the casino resort more competitive.
The deal's closing is also subject to some third-party consents and regulatory approval.
Ameristar anticipates opening the casino resort in mid-2014.
Last month Ameristar, based in Las Vegas, reported that its fourth-quarter profit fell as higher expenses offset a modest increase in revenue.