Casino Expansion Off in Kansas City

Ameristar Casinos has canceled the planned $100 million expansion of its Ameristar Casino Kansas City in Kansas City, Mo.

Plans had included a second hotel tower, meeting space, a spa and pool, said company spokeswoman Karen Lynn.

“At the present time, we don't see ourselves going forward with that particular project,” said Tom Steinbauer, Ameristar senior vice president and CFO, during a recent earnings call.

The company took a $4.5 million impairment charge in the fourth quarter of 2007 for costs related to the expansion, he added.

Ameristar's decision was related to possible competition from other casinos, Lynn said.

On Feb. 20, the Missouri Gaming Commission voted to allow applications for a gaming license in Sugar Creek, Mo., according to Ameristar officials.

“We are still committed (to Kansas City),” Lynn said. “It doesn't mean in the future we won't consider an expansion.”

Rick Hughes, president and CEO of the Kansas City (Mo.) Convention & Visitors Assn., said the canceled expansion won't impact the convention and meetings industry in the city.

“Right now (there's) unbelievable growth and expansion here,” he added. “We're not concerned, nor are they.”

But Missouri also has new competition from Kansas, which recently passed gaming laws with fewer restrictions than its neighbor.

Hughes said Missouri's gaming was unique because it is the only state to have a limit on how much money gamblers can spend: $500 in a two-hour period.

“It's a huge issue,” he added, and one Ameristar is working to change.

“We believe there are sufficient votes in the Missouri Legislature to pass legislation to modernize Missouri's gaming regulatory structure,” said Gordon Kanofsky, co-chairman of the board of directors and executive vice president of Ameristar.