New casino in St. Louis shows slight loss

Las Vegas-based Pinnacle Entertainment opened the $507 million Lumiere Place on the St. Louis riverfront on Dec. 19. For the period of January through March, Pinnacle said the casino lost $760,000 on revenue of $47.2 million.

The results, announced Wednesday, include the casino, its hotel complex and the Admiral Riverboat Casino, a much smaller downtown casino purchased by Pinnacle in 2006.

Pinnacle said the company incurred high expenses for customer services, staffing and marketing associated with the startup of Lumiere Place. The company said Lumiere Place overstaffed initially while workers were trained, and marketed to a broad audience.

Pinnacle said that over time, staffing levels will be reduced primarily through attrition "as employees become more skilled at providing first-class service." Marketing efforts will become more targeted as the company develops a database and the need for name recognition declines.

Despite the loss, Pinnacle Chairman and Chief Executive Daniel Lee said early trends for the new casino were positive.

"Lumiere Place continued to build its business throughout the quarter, as the two hotels and various restaurants opened and we completed the surrounding parking facilities," he said.

Meanwhile, Lee said a pedestrian tunnel making it easier for people to walk to the casino should open next week. The casino sits on the east side of Interstate 70, while most of the downtown area is west of the interstate.

Also coming soon, Pinnacle said, will be remaining suites at HoteLumiere and a massive reader board sign along I-70, one the company called among the largest ever built.

Pinnacle is planning another casino in south St. Louis expected to open next year.