FTC Approves Pinnacle Entertainment, Inc.’s Application to Divest One of Its Casinos in St. Louis, Missouri, to Tropicana St. Louis LLC

Following a public comment period, the Federal Trade Commission has approved an application by Pinnacle Entertainment, Inc. to divest its Lumiere Place Casino and all associated assets, including two hotels, in St. Louis, Missouri, to Tropicana St. Louis LLC, a wholly owned subsidiary of Tropicana Entertainment, Inc. In a final order, the FTC requires Pinnacle to divest these assets to a Commission-approved buyer to resolve charges that Pinnacle’s acquisition of Ameristar Casinos, Inc. would substantially reduce competition among casinos in St. Louis, in violation of the antitrust laws.  The order also requires Pinnacle to divest casino assets in Lake Charles, Louisiana, and the FTC already has approved their sale to GNLC Holdings, Inc.

According to the FTC’s complaint, absent a divestiture remedy, Pinnacle’s acquisition of Ameristar would have resulted in increased prices and lower quality for casino customers in the St. Louis and Lake Charles areas. Pinnacle and Ameristar were direct competitors in St. Louis, where both own casinos, and in the Lake Charles area, where they would have competed beginning in 2014 after the opening of Ameristar’s new casino.

The Commission vote approving Pinnacle’s application was 4-0.  (FTC File No. 131-0064, Docket No. 9355; the staff contact is Daniel P. Ducore, Bureau of Competition, 202-326-2526; see related press release dated August 12, 2013)

The FTC’s Bureau of Competition works with the Bureau of Economics to investigate alleged anticompetitive business practices and, when appropriate, recommends that the Commission take law enforcement action. To inform the Bureau about particular business practices, call 202-326-3300, send an e-mail to antitrust{at}ftc{dot}gov, or write to the Office of Policy and Coordination, Bureau of Competition, Federal Trade Commission, 601 New Jersey Ave., Room 7117, Washington, DC 20001. To learn more about the Bureau of Competition, read Competition Counts. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.