Pinnacle Entertainment Expanding in Vietnam

Ho Chi Ming City

Gambling City: Pinnacle Entertainment, which operates several casinos around the US, has entered into an agreement with Canadian firm Asian Cost Development to invest in a project that would bring a Las Vegas-style luxury resort hotel and casino complex to the shores of Vietnam. Pinnacle has agreed to invest US$95 million for a 26 percent share in the project.

The project is part of the new Ho Tram Strip complex of casino resorts in development in a beach city southeast of Ho Chi Minh City (formerly Saigon). MGM Mirage is also in the process of developing a new casino facility, the MGM Grand Ho Tram, which will include over 500 slot machines and 90 table games. The MGM Grand Ho Tram is expected to open in late 2013.

The move to the Vietnam market represents a large step for Pinnacle. Previously, the company had focused on developing smaller casinos around the US. The company operates several casinos around the country, including facilities in Missouri, Indiana and Louisiana in addition to the Boomtown Casino in Reno, Nevada. Although the company is based in Las Vegas, it does not operate a casino in the city, either on or off the Las Vegas Strip.

The announcement also caught many casino industry observers by surprise. Joel Simkins, a gaming industry analyst with the investment bank Credit Suisse, said that “the deal has come out of left field” for many investors. However, he does see some positive effects from the move, as it “could lift Pinnacle’s overall valuation”.