Pinnacle May Lose Missouri Casino - TheStreet

Pinnacle May Lose Missouri Casino

Pinnacle -- in a potential boon to its casino competitors -- may have its license revoked for one of its Missouri casinos.
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(Pinnacle article updated with background information.)

NEW YORK (

TheStreet

) --

Pinnacle Entertainment's

(PNK) - Get Report

Missouri riverboat casino might be in jeopardy.

According to a Securities and Exchange filing, regulators for the state of Missouri are attempting to revoke the license for Pinnacle's President Casino. Missouri hopes to have the casino shuttered by July 1.

Missouri regulators are claiming that the casino is an "obsolete and underachieving gaming facility," according to the filing.

Pinnacle previously announced that it was planning on replacing the hull of its riverboat, which is up for an insepction in July.

The company also operates Lumiere Place and plans on opening its River City facility in March. The company saw about 19% of its operating earnings come from the state in 2009, according to J.P. Morgan estimates.

On the upside for Pinnacle's competitors, Missouri only allows 13 gaming licenses in the state. Thus, if Pinnacle is forced to relinquish one of their licenses, it could allow other operators to develop casinos.

Penn National Gaming

(PENN) - Get Report

and

Ameristar Casinos

(ASCA)

also have operations in the state.

Missouri gaming has been hit hard amid the recession, with gaming revenue in the state down 1.6% in December.

-- Reported by Jeanine Poggi in New York.

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