exv99w1

Exhibit 99.1

CONTACT:

Tom Steinbauer
Senior Vice President of Finance, Chief Financial Officer
Ameristar Casinos, Inc.
(702) 567-7000

AMERISTAR CASINOS REPORTS RECORD FOURTH QUARTER
AND ANNUAL 2006 FINANCIAL RESULTS

Las Vegas, Nevada, February 1, 2007–Ameristar Casinos, Inc. (Nasdaq-GS: ASCA) today announced record fourth quarter and annual 2006 financial results.

Highlights

	•		All-time records for fourth quarter consolidated net revenues, operating income, EBITDA, net income and diluted earnings per share¹

	•		Fifth consecutive year of record annual consolidated net revenues, operating income and EBITDA, as well as net income and diluted earnings per share after adjustment for loss on early retirement of debt¹

	•		Fourth quarter EBITDA increased 6.4% to $66.1 million

	•		Fourth quarter diluted earnings per share grew 24.0% to $0.31

	•		2006 adjusted diluted earnings per share grew 15.5% to $1.34

	•		Exceeded diluted earnings per share guidance for the quarter and year by $0.05


¹		EBITDA, adjusted net income and adjusted diluted earnings per share are non-GAAP financial measures that are reconciled to GAAP financial measures in the tables at the end of this release.

John Boushy, CEO and President, stated: “2006 was the most prosperous year in our company’s history. Our record fourth quarter performance was achieved while the entire Ameristar team mourned the loss of our founder, Chairman and CEO, Craig H. Neilsen. He leaves us a tremendous legacy and a strong foundation for future growth.

“Over the next three to five years, our goal is to double our EBITDA. We intend to grow through our continued commitment to being the most profitable operator in our markets along with high-quality investments that produce attractive incremental returns at existing properties. Additionally, we expect to capture strong, unmet demand for the Ameristar experience by aggressively pursuing acquisition opportunities in new locations that diversify our revenue base and increase our profitability.

“Our record fourth quarter and annual financial results are a testament to our ability to profitably grow the Ameristar brand by providing the highest quality facilities in our markets and the most complete entertainment experience for our guests. The dedication of our 7,200 team members to constantly deliver excellent guest experiences is truly inspiring. Our commitment to quality clearly differentiates us from our competition.”

Consolidated Selected Quarterly and Annual Financial Data
(Amounts in Millions, Except Per Share Data)
(Unaudited)


	Three Months Ended									Year Ended
	December 31,									December 31,
							%									%
	2006			2005			Change			2006			2005			Change
Gross revenues	$	287.8		$	295.9			(2.7	%)	$	1,197.2		$	1,151.5			4.0	%
Promotional allowances		(43.7	)		(52.1	)		(16.1	%)		(196.9	)		(190.1	)		3.5	%

Net revenues	$	244.1		$	243.8			0.1	%	$	1,000.3		$	961.4			4.1	%


Operating income	$	42.0		$	39.7			5.8	%	$	171.5		$	168.7			1.7	%


Net income	$	17.8		$	14.3			24.7	%	$	59.6		$	66.3			(10.1	%)


Diluted earnings per share	$	0.31		$	0.25			24.0	%	$	1.04		$	1.16			(10.3	%)


EBITDA	$	66.1		$	62.1			6.4	%	$	265.4		$	254.1			4.5	%

Fourth Quarter Summary

Ameristar’s record quarterly financial results were largely driven by the following three factors:

	•		In 2006, Ameristar Black Hawk achieved record fourth quarter financial results in every key performance measure. Our Black Hawk property experienced significant growth in business volume and strong improvement in financial performance since its rebranding on April 1, 2006. The property’s financial results also benefited from the absence of construction disruption that adversely impacted performance for the fourth quarter of 2005.

	•		Ameristar Vicksburg’s 2006 fourth quarter business volumes and financial performance surpassed all quarterly results prior to Hurricane Katrina. This exceptional performance was achieved despite the reopening of several Gulf Coast casinos during 2006. The decline in our Vicksburg property’s 2006 fourth quarter performance from the prior-year fourth quarter resulted from the

			substantial increase in our business volumes during the 2005 fourth quarter when virtually all Mississippi Gulf Coast casinos were closed in the aftermath of the hurricane.

	•		Our record consolidated fourth quarter financial results reflect our success in maximizing profitability. We continued to see the positive impact from our efforts to utilize promotional allowances and labor more efficiently. Promotional allowances decreased at all our properties as a percentage of gaming revenues, and we expect this trend to continue in 2007.

Building for Future Growth

Capital expenditures for the 2006 fourth quarter totaled $76.0 million. These expenditures were mostly funded with cash from operations and, to a lesser extent, with borrowings under our revolving loan facility. Capital expenditures during the fourth quarter included $31.7 million related to the expansion at Ameristar St. Charles described below, $11.4 million for capital improvement projects at Ameristar Black Hawk, $7.7 million for the acquisition of slot machines and $3.1 million related to our expansion at Ameristar Vicksburg.

Construction continues to progress at Ameristar St. Charles on our 400-room, all-suite hotel with an indoor/outdoor swimming pool and a 7,000 square-foot full-service spa, and an additional 2,000-space parking garage. The hotel is designed to surpass four-diamond quality standards and we believe it will be the premier hotel in greater St. Louis. The total cost of these projects and the recently completed conference facilities is expected to be $265.0 million, representing an increase of $25.0 million over the original budget. The revised cost estimate is mostly attributable to upgraded design and

finishes intended to enhance the guest experience, greater-than-anticipated site preparation costs and an increase in the cost of materials. The completion dates are projected to be the first quarter of 2007 for the initial 1,000 spaces of the parking garage and December 2007 for the hotel and the remainder of the project. We believe these new amenities will allow us to further enhance our competitive position in the St. Louis market.

The construction of the four-diamond-quality hotel is progressing at Ameristar Black Hawk. The 33-story tower’s 536 well-appointed, oversized rooms will feature upscale furnishings and amenities. The tower will include a versatile meeting and ballroom center and will also have Black Hawk’s only full-service spa, an enclosed rooftop swimming pool and indoor/outdoor whirlpool facilities. Once completed, Ameristar Black Hawk will offer destination resort amenities and services that we believe are unprecedented in the Denver gaming market. The hotel’s completion date has been delayed until the second quarter of 2009, primarily due to unforeseen site conditions and inclement weather. The cost of the hotel is expected to be $220.0 million, representing an increase of $40.0 million over the previous budget. The revised cost estimate is mostly attributable to an increase in materials costs, the unforeseen site conditions and upgraded finishes and amenities designed to enhance the guest experience.

We are continuing to progress with a casino and parking expansion project at Ameristar Vicksburg. Construction on the casino expansion, which will add 800 gaming positions, a VIP club, retail space and a parking garage to the property, is now expected to be completed

by mid-2008 due to complexities associated with dry-docking the vessel. We believe these improvements will help to alleviate long-standing capacity constraints, provide more convenient access and increase our long-time market dominance in Vicksburg. The cost of the casino expansion project is expected to be $95.0 million. In addition to the Vicksburg projects noted above, we will soon commence a $12 million renovation of the hotel.

The Black Hawk and Vicksburg projects may experience additional delays and/or cost increases due to unforeseeable site conditions and complexities associated with dry-docking the vessel, respectively.

In addition to internal capital expenditure projects, we continue to aggressively pursue external expansion opportunities to broaden our overall distribution and increase scale and diversification. In the near term, we are focusing on the potential acquisition of existing casino-entertainment properties that can be improved through the implementation of our development and operational expertise. We will also consider new development opportunities in existing and emerging domestic and select international markets. Longer term, we contemplate large development projects in major national markets.

Outlook

Based on our preliminary results of operations in January 2007 and our outlook for the remainder of the quarter, we currently estimate operating income of $44 million to $46 million, EBITDA of $68 million to $70 million (based upon anticipated depreciation expense of $24 million), interest expense of $12 million and diluted earnings per share of $0.34 to $0.36 for the first quarter of 2007.

For the year ending December 31, 2007, we currently estimate operating income of $176 million to $184 million, EBITDA of $272 million to $280 million (based upon anticipated depreciation expense of $96 million), interest expense of $45 million and diluted earnings per share of $1.41 to $1.49.

These estimates take into account anticipated construction disruption at Black Hawk, Vicksburg and St. Charles associated with the projects described above as we position them for future growth. Additionally, the estimates of operating income, EBITDA and diluted earnings per share include projected stock-based compensation expense (on an after-tax basis) of $1.7 million for the first quarter of 2007 and $6.9 million for the full year 2007, which we expect to adversely impact diluted earnings per share by $0.03 and $0.12 for the first quarter and full year 2007, respectively.

Conference Call

We will hold a conference call to discuss our fourth quarter results and guidance for the first quarter and full year 2007 at 5:00 p.m. Eastern Time on February 1, 2007. The call can be accessed live by dialing (800) 310-6649. It can be replayed until February 9, 2007 at 3:00 a.m. Eastern Time by dialing (888) 203-1112 and using the access code number 4306024. Interested parties wishing to listen to the live conference call and view informative slides on the Internet may do so on our web site – www.ameristar.com – in “About Ameristar/Investor Relations” under the “Quarterly Results Conference Calls” section.

Forward-Looking Information

This press release contains certain forward-looking information that generally can be identified by the context of the statement or the use of forward-looking terminology, such as “believes,” “estimates,” “anticipates,” “intends,” “expects,” “plans,” “is confident that” or words of similar meaning, with reference to Ameristar or our management. Similarly, statements that describe our future plans, objectives, strategies, financial results or position, operational expectations or goals are forward-looking statements. It

is possible that our expectations may not be met due to various factors, many of which are beyond our control, and we therefore cannot give any assurance that such expectations will prove to be correct. For a discussion of relevant factors, risks and uncertainties that could materially affect our future results, attention is directed to “Item 1A. Risk Factors” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2005 and “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2006.

On a monthly basis, gaming regulatory authorities in Iowa, Mississippi and Missouri currently publish gross gaming revenue and certain other financial information for the gaming facilities that operate within their respective jurisdictions. Because various factors in addition to our gross gaming revenue (including operating costs, promotional allowances and corporate and other expenses) influence our operating income, EBITDA and diluted earnings per share, such reported information, as it relates to Ameristar, may not accurately reflect the results of our operations for such periods or for future periods.

About Ameristar

Ameristar Casinos, Inc. is a leading Las Vegas-based gaming and entertainment company known for its premier properties characterized by innovative architecture, state-of-the-art casino floors and superior dining, lodging and entertainment offerings. Ameristar’s focus on the total entertainment experience and the highest quality guest service has earned it a leading market share position in each of the markets in which it

operates. Founded in 1954 in Jackpot, Nevada, Ameristar has been a public company since November 1993. The company has a portfolio of seven casinos in six markets: Ameristar St. Charles (greater St. Louis); Ameristar Kansas City; Ameristar Council Bluffs (Omaha, Nebraska and southwestern Iowa); Ameristar Vicksburg (Jackson, Mississippi and Monroe, Louisiana); Ameristar Black Hawk (Denver metropolitan area); and Cactus Petes and the Horseshu in Jackpot, Nevada (Idaho and the Pacific Northwest).

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Visit Ameristar Casinos’ web site at www.ameristar.com
(which shall not be deemed to be incorporated in or a part of this news release).

AMERISTAR CASINOS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in Thousands, Except Per Share Data)
(Unaudited)


	Three Months						Year
	Ended December 31,						Ended December 31,
	2006			2005			2006			2005
REVENUES:
Casino	$	242,389		$	248,832		$	1,008,311		$	974,178
Food and beverage		31,768			33,099			131,795			125,918
Rooms		6,608			6,593			27,972			25,355
Other		7,016			7,384			29,082			26,041

		287,781			295,908			1,197,160			1,151,492
Less: Promotional allowances		43,738			52,117			196,862			190,134

Net revenues		244,043			243,791			1,000,298			961,358

OPERATING EXPENSES:
Casino		105,526			110,662			439,101			431,101
Food and beverage		17,346			17,634			68,744			66,299
Rooms		1,776			1,540			6,780			6,454
Other		3,981			4,312			18,749			16,503
Selling, general and administrative		48,781			47,379			200,588			186,050
Depreciation and amortization		24,031			22,355			93,889			85,366
Impairment loss on assets held for sale		581			186			931			869

Total operating expenses		202,022			204,068			828,782			792,642

Income from operations		42,021			39,723			171,516			168,716

OTHER INCOME (EXPENSE):
Interest income		631			298			2,746			830
Interest expense, net		(12,151	)		(15,592	)		(50,291	)		(60,913	)
Loss on early retirement of debt		—			(1,890	)		(26,264	)		(2,074	)
Net gain (loss) on disposition of assets		570			(110	)		683			(1,655	)


INCOME BEFORE INCOME TAX PROVISION		31,071			22,429			98,390			104,904
Income tax provision		13,238			8,129			38,825			38,619

NET INCOME	$	17,833		$	14,300		$	59,565		$	66,285


EARNINGS PER SHARE:
Basic	$	0.32		$	0.26		$	1.06		$	1.19

Diluted	$	0.31		$	0.25		$	1.04		$	1.16


CASH DIVIDENDS DECLARED PER SHARE	$	0.09		$	0.08		$	0.38		$	0.31


WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic		56,227			55,906			56,155			55,664

Diluted		57,538			57,061			57,327			57,127

AMERISTAR CASINOS, INC. AND SUBSIDIARIES
SUMMARY CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands)
(Unaudited)


	Three Months						Year
	Ended December 31,						Ended December 31,
	2006			2005			2006			2005
Consolidated cash flow information
Net cash provided by operating activities	$	30,640		$	44,710		$	169,048		$	197,459
Net cash used in investing activities		(71,294	)		(50,530	)		(237,681	)		(175,849	)
Net cash provided by (used in) financing activities		26,556			29,189			63,138			(1,988	)

Net revenues
Ameristar St. Charles	$	68,716		$	70,500		$	284,841		$	286,028
Ameristar Kansas City		63,442			61,885			252,991			247,586
Ameristar Council Bluffs		44,476			45,787			181,840			186,367
Ameristar Vicksburg		32,053			37,929			135,236			126,089
Jackpot Properties		16,680			15,518			68,698			63,939
Ameristar Black Hawk		18,676			12,172			76,692			51,349

Consolidated net revenues	$	244,043		$	243,791		$	1,000,298		$	961,358


Operating income (loss) (1)
Ameristar St. Charles	$	15,005		$	14,070		$	64,842		$	63,268
Ameristar Kansas City		11,949			9,577			47,625			48,226
Ameristar Council Bluffs		13,364			13,406			50,950			56,452
Ameristar Vicksburg		10,809			13,887			43,630			38,812
Jackpot Properties		2,662			2,012			12,812			10,851
Ameristar Black Hawk		2,170			(1,250	)		7,555			304
Corporate and other		(13,938	)		(11,979	)		(55,898	)		(49,197	)

Consolidated operating income	$	42,021		$	39,723		$	171,516		$	168,716


EBITDA (1) (2)
Ameristar St. Charles	$	21,833		$	20,680		$	91,493		$	89,510
Ameristar Kansas City		17,667			15,150			70,009			69,235
Ameristar Council Bluffs		16,743			16,588			64,201			68,638
Ameristar Vicksburg		13,832			16,896			55,788			50,696
Jackpot Properties		3,817			3,152			17,209			15,209
Ameristar Black Hawk		5,214			698			19,251			6,699
Corporate and other		(13,054	)		(11,086	)		(52,546	)		(45,905	)

Consolidated EBITDA	$	66,052		$	62,078		$	265,405		$	254,082

AMERISTAR CASINOS, INC. AND SUBSIDIARIES
SUMMARY CONSOLIDATED FINANCIAL DATA – CONTINUED
(Dollars in Thousands)
(Unaudited)


	Three Months						Year
	Ended December 31,						Ended December 31,
	2006			2005			2006			2005
Operating income margins (1) (3)
Ameristar St. Charles		21.8	%		20.0	%		22.8	%		22.1	%
Ameristar Kansas City		18.8	%		15.5	%		18.8	%		19.5	%
Ameristar Council Bluffs		30.0	%		29.3	%		28.0	%		30.3	%
Ameristar Vicksburg		33.7	%		36.6	%		32.3	%		30.8	%
Jackpot Properties		16.0	%		13.0	%		18.6	%		17.0	%
Ameristar Black Hawk		11.6	%		(10.3	%)		9.9	%		0.6	%
Consolidated operating income margin		17.2	%		16.3	%		17.1	%		17.5	%

EBITDA margins (1) (2)
Ameristar St. Charles		31.8	%		29.3	%		32.1	%		31.3	%
Ameristar Kansas City		27.8	%		24.5	%		27.7	%		28.0	%
Ameristar Council Bluffs		37.6	%		36.2	%		35.3	%		36.8	%
Ameristar Vicksburg		43.2	%		44.5	%		41.3	%		40.2	%
Jackpot Properties		22.9	%		20.3	%		25.1	%		23.8	%
Ameristar Black Hawk		27.9	%		5.7	%		25.1	%		13.0	%
Consolidated EBITDA margin		27.1	%		25.5	%		26.5	%		26.4	%


(1)		On January 1, 2006, we adopted SFAS No. 123(R), which requires the recognition of compensation expense in an amount equal to the fair value of share-based payments (e.g., stock options) granted to employees. For the quarter and year ended December 31, 2006, the adoption of SFAS No. 123(R) resulted in a non-cash operating expense of $1.2 million and $7.8 million, respectively.

(2)		EBITDA is earnings before interest, taxes, depreciation and amortization. EBITDA is presented solely as a supplemental disclosure because management believes that it is a widely used measure of operating performance in the gaming industry and a principal basis for the valuation of gaming companies. Our credit agreement also requires the use of EBITDA as a measure of compliance with our principal debt covenants. In addition, management uses property-level EBITDA (EBITDA before corporate expense) as the primary measure of our operating properties’ performance, including the evaluation of operating personnel. EBITDA margin is EBITDA as a percentage of net revenues. EBITDA should not be construed as an alternative to income from operations (as determined in accordance with GAAP) as an indicator of our operating performance, as an alternative to cash flows from operating activities (as determined in accordance with GAAP) as a measure of liquidity, or as an alternative to any other measure determined in accordance with GAAP. We have significant uses of cash flows, including capital expenditures, interest payments, taxes and debt principal repayments, which are not reflected in EBITDA. It should also be noted that not all gaming companies that report EBITDA calculate EBITDA in the same manner as we do.

(3)		Operating income margin is operating income (loss) as a percentage of net revenues.

RECONCILIATION OF OPERATING INCOME (LOSS) TO EBITDA
(Dollars in Thousands)
(Unaudited)

The following table sets forth a reconciliation of operating income (loss), a GAAP financial measure, to EBITDA, a non-GAAP financial measure.


	Three Months						Year
	Ended December 31,						Ended December 31,
	2006			2005			2006			2005
Ameristar St. Charles:
Operating income	$	15,005		$	14,070		$	64,842		$	63,268
Depreciation and amortization		6,828			6,610			26,651			26,242

EBITDA	$	21,833		$	20,680		$	91,493		$	89,510


Ameristar Kansas City:
Operating income	$	11,949		$	9,577		$	47,625		$	48,226
Depreciation and amortization		5,718			5,573			22,384			21,009

EBITDA	$	17,667		$	15,150		$	70,009		$	69,235


Ameristar Council Bluffs:
Operating income	$	13,364		$	13,406		$	50,950		$	56,452
Depreciation and amortization		3,379			3,182			13,251			12,186

EBITDA	$	16,743		$	16,588		$	64,201		$	68,638


Ameristar Vicksburg:
Operating income	$	10,809		$	13,887		$	43,630		$	38,812
Depreciation and amortization		3,023			3,009			12,158			11,884

EBITDA	$	13,832		$	16,896		$	55,788		$	50,696


Jackpot Properties:
Operating income	$	2,662		$	2,012		$	12,812		$	10,851
Depreciation and amortization		1,155			1,140			4,397			4,358

EBITDA	$	3,817		$	3,152		$	17,209		$	15,209


Ameristar Black Hawk:
Operating income (loss)	$	2,170		$	(1,250	)	$	7,555		$	304
Depreciation and amortization		3,044			1,948			11,696			6,395

EBITDA	$	5,214		$	698		$	19,251		$	6,699


Corporate and other:
Operating loss	$	(13,938	)	$	(11,979	)	$	(55,898	)	$	(49,197	)
Depreciation and amortization		884			893			3,352			3,292

EBITDA	$	(13,054	)	$	(11,086	)	$	(52,546	)	$	(45,905	)


Consolidated:
Operating income	$	42,021		$	39,723		$	171,516		$	168,716
Depreciation and amortization		24,031			22,355			93,889			85,366

EBITDA	$	66,052		$	62,078		$	265,405		$	254,082

RECONCILIATION OF REPORTED NET INCOME AND DILUTED EARNINGS PER SHARE
TO ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE
(Dollars in Thousands, Except Per Share Data)
(Unaudited)

The following table sets forth a reconciliation of reported net income and diluted earnings per share to adjusted net income and adjusted diluted earnings per share, which are non-GAAP financial measures.


	Year Ended
	December 31,
	2006		2005
Adjusted Net Income (1):

Net income	$	59,565	$	66,285
Loss on early retirement of debt, net of tax of $9,192		17,072		—

Adjusted net income	$	76,637	$	66,285


Adjusted Diluted Earnings Per Share (1):

Diluted earnings per share	$	1.04	$	1.16
Loss on early retirement of debt, net of tax of $9,192		0.30		—

Adjusted diluted earnings per share	$	1.34	$	1.16


(1)		Adjusted net income and adjusted diluted earnings per share exclude the loss on early retirement of our senior subordinated notes in February 2006. The adjusted amounts are presented solely as supplemental disclosures because management believes that they are widely used measures of operating performance in the gaming industry and we consider these to be better measures on which to base expectations of our future results than reported net income and diluted earnings per share. It should be noted that not all gaming companies that report adjusted net income and adjusted diluted earnings per share calculate these amounts in the same manner as we do.

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