exv99w1

Exhibit 99.1

CONTACTS:


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

Media:		Karen Lynn
		VP of Communications
		Ameristar Casinos, Inc.
		(702) 567-7038

AMERISTAR REPORTS THIRD QUARTER RESULTS

	§		Maintained Strong Position in All Markets

	§		Posted Solid Profitability in Line with Guidance

	§		Updates Guidance to Include Recently-Acquired Resorts East Chicago Property

LAS VEGAS, Nevada, November 5, 2007 — Ameristar Casinos, Inc. (NASDAQ-GS: ASCA) today announced financial results for the third quarter ended September 30, 2007.

Net revenues for the period were $265.4 million and included a $9.2 million contribution from the Resorts East Chicago property, which was acquired on September 18, 2007. In last year’s third quarter, the Company reported net revenues of $253.6 million.

“Ameristar succeeded in generating higher net revenues at four of our six locations and we achieved companywide net revenue growth despite slower than expected growth in most of our markets during the third quarter,” noted John Boushy, Chief Executive Officer and President. “We continue our disciplined focus on maximizing our profitability, while moving ahead with important expansion projects that provide significant potential for growth beginning next year.”

EBITDA was $68.5 million and adjusted EBITDA was $70.1 million in the 2007 third quarter compared to EBITDA of $69.6 million in last year’s third quarter. Adjusted EBITDA in the 2007 third quarter excludes:

	§		pre-opening expenses of $0.5 million associated with the hotel under construction at the St. Charles property; and

	§		integration and transition costs of $1.1 million related to the Resorts East Chicago acquisition.

No adjustments to EBITDA were appropriate for the quarter ended September 30, 2006. More information on the non-GAAP financial measures EBITDA and Adjusted EBITDA can be found under the caption “Use of Non-GAAP Financial Measures” on page 14 of this release.

Operating income was $46.0 million, similar to the $46.3 million reported last year. Third quarter 2007 operating income was impacted by a $0.3 million negative contribution from the Company’s recently acquired Resorts East Chicago property. Net income for the period was $20.0 million, or $0.34 per share on a diluted basis, which included a net loss of $0.8 million ($0.01 per diluted share) from the Resorts East Chicago property. In last year’s third quarter, the Company reported net income of $21.1 million, or $0.37 per diluted share.

“Ameristar maintained its prominent position in each of our markets, and we continued to generate solid same-store EBITDA margins for all properties,” Mr. Boushy said. “Nonetheless, year-over-year comparisons reflect the impact of softer conditions in certain locations and construction-related disruptions at two properties. Overall, Ameristar’s third quarter results were in line with our expectations and guidance, illustrating the strength of our business model and our ability to generate solid profitability within dynamic market environments.”

Third Quarter Property Highlights

Ameristar Black Hawk continued its strong momentum, posting net revenue growth of 8% and an increase of nearly 11% in EBITDA. This property’s performance is indicative of Ameristar’s proven track record of driving profitable growth through strategic spending on facility upgrades and implementation of initiatives to deliver superior guest service. Since its rebranding to “Ameristar” in April 2006, the property has recorded six consecutive quarters of growth in net revenues and EBITDA.

	§		Ameristar Kansas City achieved 12.3% EBITDA growth on a modest increase in net revenues, mostly attributable to a more efficient operating model and effective marketing.

	§		Ameristar St. Charles generated net revenues that were basically flat and slightly lower EBITDA. Results were impacted by pre-opening expenses, construction-related disruptions increased competition in the market.

	§		Ameristar Council Bluffs posted a 3.4% decline in net revenues and a 5.2% decrease in EBITDA, primarily reflecting softer than expected market growth.

	§		Ameristar Vicksburg reported slightly lower revenues and EBITDA due to construction-related disruptions and, to a lesser extent, business recapture by re-opened Gulf Coast casinos.

	§		Our Jackpot properties benefited from operating efficiencies reflected in EBITDA growth of 14.5% on an 11.1% increase in net revenues.

	§		East Chicago, which the Company owned for 13 days in the quarter, reported net revenues of $9.2 million and EBITDA of $0.1 million, which included integration costs of $0.3 million.

Additional Third Quarter Financial Information

	§		Corporate expense increased $2.7 million year-over-year, mostly attributable to acquisition-related integration expenses of $0.8 million, higher pre-tax stock-based compensation expense of $0.8 million as well as $0.4 million in other benefit-related costs.

	§		Capital expenditures were $69.3 million, primarily including:

	§		St. Charles expansion: $35.5 million

	§		Black Hawk hotel project: $6.6 million

	§		Vicksburg expansion: $5.7 million

The Company repurchased approximately 376,000 shares of common stock in the open market at an average price of $25.65 per share, for a total cost of approximately $9.7 million. Since August 2006, the Company has repurchased approximately 787,000 shares at an average price of $22.43 per share for an aggregate cost of $17.7 million. Approximately 2.0 million shares remain available for repurchase under the currently authorized repurchase program.

Outlook

The Company is updating its fourth quarter and full year 2007 guidance to include the forecasted results of the operations of Resorts East Chicago. On a same-store basis, the guidance ranges are in line with the outlook the Company provided on August 1, 2007.

The Company’s guidance ranges for the fourth quarter and full year 2007, including the results of the Resorts East Chicago (REC) property and its acquisition, are as follows:

Fourth Quarter 2007


	Guidance Range
	(Dollars in Millions,
Financial	Except Per Share
Measure	Data)	Assumptions and Factors
EBITDA	$64 – $67	Includes $9 million – $10 million from REC and $3 million in stock-based compensation expense
Adjusted EBITDA	$69 – $72	Excludes St. Charles hotel pre-opening expenses of $3 million and integration costs of $2 million for REC
Operating Income	$38 – $41	Includes $6.5 million – $7.5 million from REC
Diluted EPS	$0.14 – $0.17	Includes net loss of $0.05 – $0.06 attributable to REC and a dilutive impact of $0.03 related to St. Charles pre-opening costs and $0.03 related to stock-based compensation expense

Full Year 2007


	Guidance Range
	(Dollars in Millions,
Financial	Except Per Share
Measure	Data)	Assumptions and Factors
EBITDA	$273 – $276	Includes $9 million – $10 million from REC and $12 million in stock-based compensation expense
Adjusted EBITDA	$280 – $283	Excludes St. Charles hotel pre-opening expenses of approximately $4 million and integration costs of approximately $3 million for REC
Operating Income	$177 – $180	Includes $6.2 million – $7.2 million from REC
Diluted EPS	$1.19 – $1.22	Includes net loss of $0.06 – $0.07 attributable to REC and a dilutive impact of $0.04 related to St. Charles pre-opening costs and $0.13 related to stock-based compensation expense

Fourth quarter 2007 guidance includes an estimate of $1.5 million to $2 million in additional property tax expense for the Resorts East Chicago property, which is the result of a significant increase in the assessed valuation of the real property issued by Lake County, Indiana. While the Company has notified the tax assessor that it intends to protest the tax re-assessment, it nonetheless expects to continue to recognize significantly higher than anticipated property tax expense at East Chicago in 2008.

Fourth quarter guidance is based upon anticipated depreciation expense of $26 million and interest expense of $24 million. Diluted EPS guidance assumes fourth quarter and full year 2007 consolidated income tax rates of approximately 42.0% and 41.6%, respectively.

Commenting on the Company’s outlook, Mr. Boushy said: “Ameristar continues to distinguish itself as a leader in each market and is laying the foundation for increasing revenue and earnings growth potential through a combination of important expansion projects and strategic acquisitions. Capital projects currently underway at existing locations are expected to drive both market growth and share for Ameristar.”

Resorts East Chicago Integration, Facility Upgrade and Rebranding

Ameristar now has a major presence in the third largest commercial gaming market in the country, following the recent acquisition of Resorts East Chicago. The Chicagoland market generates more than $2.5 billion in gaming revenues annually and serves approximately 6.4 million adults. The property’s 53,000-square foot casino and 291-room hotel provide Ameristar with a strategically important platform for future growth and geographic diversification.

However, year-to-date results for Resorts East Chicago are significantly less than originally anticipated. We now expect proforma EBITDA for the full year 2007 to be $54 million to $55 million, adjusted to exclude the impact of integration expenses and the increase in property taxes.

While this situation provides an additional hurdle to overcome, the Company continues to believe there is significant growth potential for Ameristar at this location as it begins to leverage its operating and marketing strategies. The Company is already beginning to redirect the property’s marketing and promotional activities to maximize East Chicago’s revenue and profitability, replicating the strategies that have proven successful at Ameristar’s other properties.

Immediately after closing of the acquisition, Ameristar also began making initial improvements to the property, including changing the slot machine mix and layout of games and making enhancements to the food and beverage venues to bring them up to Ameristar’s standards.

The Company continues to expect capital expenditures for these upgrades to the property will be in the range of $20 million to $25 million. One-time expenses in connection with the integration, enhancement and rebranding are expected to total between $5 million to $7 million, inclusive of the $0.3 million incurred in the 2007 third quarter.

Upon completion of the property upgrades and the implementation of its operating and marketing programs, the Company will launch the Ameristar brand in the Chicagoland market no later than the third quarter of 2008. The property’s competitiveness in this underserved and attractive market is expected to progressively increase as the implementation of Ameristar’s operational and marketing approaches and the facility upgrades are completed.

Expansion Projects

St. Charles. The Company’s major development project at its Ameristar St. Charles property was originally scheduled for a December 2007 completion and opening. However, recent delays have been encountered on the project, which the Company is addressing through negotiations with its general contractor. Work is continuing on the project, which includes a 25-story, 400-room all-suite hotel with an indoor/outdoor swimming pool and a 7,000-square-foot, full-service spa. Management is focused on resolving the outstanding issues facing the project and is seeking to open the hotel, pool and spa as soon as possible without material impacts on the budget or schedule.

Also at St. Charles, the Company is enhancing the casino area by improving flow and layout as well as adding a new casino circle bar. A new entertainment venue — a stylish, state-of-the-art nightclub — is also under construction to complement the property’s new amenities and broaden consumer appeal. These improvements are scheduled to be completed in December 2007, in time for the holiday season.

Construction work is progressing well on the roadway project to improve the primary access to Ameristar St. Charles. When completed this December, the new boulevard will greatly improve access to the property by accommodating more traffic at peak periods, as well as upgrading the aesthetics of the approach to the property, including improved lighting and landscaping.

Vicksburg. The $98 million project at Ameristar Vicksburg is progressing. Both the 1,000-space parking garage, as well as the expanded gaming facility, which will include 440 additional gaming positions, two new restaurants, a VIP club and retail space, are now scheduled to open in the second quarter of 2008. In addition, the $12 million renovation to the 149-room hotel commenced in August 2007 and is expected to be completed this December.

Council Bluffs. Earlier this year, the Company announced a $100 million expansion plan for its Council Bluffs property. This project will add 60,000 square feet to the existing facility and double the current casino floor square footage. The project, which is in the design stage, is expected to be completed in mid-2009 and is subject to the receipt of all necessary approvals

Black Hawk. Construction on the Ameristar Black Hawk 536-room, four-diamond-quality hotel is progressing on schedule, despite previously announced delays due to difficult geological site conditions. Extensive rock excavation and removal, which is making way for work to begin on the main portion of the 33-story hotel tower, is expected to be finished early this month. This project is scheduled to be completed in the second half of 2009.

Conference Call Information

We will hold a conference call to discuss our third quarter results on Monday, November 5, 2007 at 5:15 p.m. Eastern Time. The call can be accessed live by dialing (888) 694-4728 and using the conference ID number, which is 9363726. Conference call participants are requested to dial in to the call at least five minutes early to ensure a prompt start. Interested parties wanting to listen to the conference call and view corresponding informative slides on the Internet may do so live at our web site – www.ameristar.com – in “About Ameristar/Investor Relations” under the “Quarterly Results Conference Calls” section. The conference call will be recorded and can be replayed from November 5, 2007 at 8:00 p.m. Eastern Time until November 12, 2007 at 3:00 a.m. Eastern Time. To listen to the replay, call (877) 519-4471 and use access code 9363726.

Forward-Looking Information

This document 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, 2006 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 June 30, 2007.

On a monthly basis, gaming regulatory authorities in certain states in which we operate publish gross gaming revenue and/or 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 eight casinos in seven 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); Cactus Petes and The Horseshu in Jackpot, Nevada (Idaho and the Pacific Northwest); and Resorts East Chicago (Chicagoland area), which was acquired on Sept. 18, 2007.

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 Ended September 30,						Nine Months Ended September 30,
	2007 ⁽¹⁾			2006			2007 ⁽¹⁾			2006 ⁽²⁾
REVENUES:
Casino	$	266,045		$	254,724		$	776,389		$	765,923
Food and beverage		33,612			33,478			98,493			100,027
Rooms		8,177			7,521			22,049			21,364
Other		7,903			7,803			22,018			22,065

		315,737			303,526			918,949			909,379
Promotional allowances		(50,365	)		(49,948	)		(141,202	)		(153,123	)

Net revenues		265,372			253,578			777,747			756,256

OPERATING EXPENSES:
Casino		113,992			109,858			332,353			333,575
Food and beverage		17,812			17,219			51,294			51,398
Rooms		1,905			1,630			5,836			5,004
Other		5,115			5,162			14,532			14,768
Selling, general and administrative		58,013			50,068			164,306			151,807
Depreciation and amortization		22,532			23,329			70,051			69,859
Impairment loss on assets held for sale		50			59			166			350

Total operating expenses		219,419			207,325			638,538			626,761

Income from operations		45,953			46,253			139,209			129,495

OTHER INCOME (EXPENSE):
Interest income		867			739			1,717			2,115
Interest expense, net		(12,449	)		(12,373	)		(34,914	)		(38,140	)
Loss on early retirement of debt		—			—			—			(26,264	)
Net (loss) gain on disposition of assets		(1,301	)		(8	)		(1,305	)		113
Other		386			—			11			—


INCOME BEFORE INCOME TAX PROVISION		33,456			34,611			104,718			67,319
Income tax provision		13,482			13,526			43,523			25,586

NET INCOME	$	19,974		$	21,085		$	61,195		$	41,733


EARNINGS PER SHARE:
Basic	$	0.35		$	0.38		$	1.07		$	0.74

Diluted	$	0.34		$	0.37		$	1.05		$	0.73


CASH DIVIDENDS DECLARED PER SHARE	$	0.10		$	0.09		$	0.31		$	0.28


WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic		57,206			56,090			57,043			56,131

Diluted		58,293			57,184			58,303			57,177


⁽¹⁾		The East Chicago property was acquired on September 18, 2007. Accordingly, operating results are included only from the acquisition date.

⁽²⁾		For the nine months ended September 30, 2006, the Company reported one-time charges related to loss on early retirement of debt, which negatively impacted net income and diluted earnings per share by $17.1 million and $0.30, respectively, and a state income tax matter that adversely impacted net income and diluted earnings per share by $2.3 million and $0.04, respectively.

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


	September 30, 2007		December 31, 2006
Balance sheet data
Cash and cash equivalents	$	113,440	$	101,140
Total assets	$	2,362,705	$	1,541,475
Total debt, including current maturities	$	1,601,998	$	883,012
Stockholders’ equity	$	495,758	$	434,164


	Three Months Ended September 30,						Nine Months Ended September 30,
	2007			2006			2007			2006
Consolidated cash flow information
Net cash provided by operating activities	$	74,482		$	55,073		$	171,864		$	138,408
Net cash used in investing activities	$	(706,468	)	$	(57,603	)	$	(868,709	)	$	(166,387	)
Net cash provided by financing activities	$	664,672		$	5,887		$	709,145		$	36,582

Net revenues
Ameristar St. Charles	$	71,091		$	70,974		$	216,604		$	216,125
Ameristar Kansas City		63,464			62,350			191,054			189,549
Ameristar Council Bluffs		44,855			46,420			134,909			137,365
Ameristar Vicksburg		31,914			32,825			100,539			103,182
Ameristar Black Hawk		24,139			22,342			69,031			58,017
Jackpot Properties		20,733			18,667			56,434			52,018

Net revenues from historical properties		256,196			253,578			768,571			756,256
East Chicago⁽¹⁾		9,176			—			9,176			—

Consolidated net revenues	$	265,372		$	253,578		$	777,747		$	756,256


Operating income (loss)
Ameristar St. Charles	$	16,959		$	16,253		$	51,794		$	49,838
Ameristar Kansas City		13,488			11,745			40,443			35,676
Ameristar Council Bluffs		13,431			14,222			38,117			37,586
Ameristar Vicksburg		9,339			9,923			33,029			32,821
Ameristar Black Hawk		4,832			3,825			13,689			5,384
Jackpot Properties		4,567			3,963			11,604			10,150
Corporate and other		(16,332	)		(13,678	)		(49,136	)		(41,960	)

Operating income from historical properties		46,284			46,253			139,540			129,495
East Chicago⁽¹⁾		(331	)		—			(331	)		—

Consolidated operating income	$	45,953		$	46,253		$	139,209		$	129,495


EBITDA
Ameristar St. Charles	$	22,091		$	22,904		$	70,349		$	69,660
Ameristar Kansas City		19,134			17,032			57,454			52,342
Ameristar Council Bluffs		16,654			17,571			48,011			47,459
Ameristar Vicksburg		12,391			12,879			42,228			41,955
Ameristar Black Hawk		7,777			7,008			22,353			14,037
Jackpot Properties		5,772			5,043			15,193			13,392
Corporate and other		(15,409	)		(12,855	)		(46,403	)		(39,491	)

EBITDA from historical properties		68,410			69,582			209,185			199,354
East Chicago⁽¹⁾		75			—			75			—

Consolidated EBITDA	$	68,485		$	69,582		$	209,260		$	199,354

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


	Three Months Ended September 30,						Nine Months Ended September 30,
	2007			2006			2007			2006
Operating income margins ⁽²⁾
Ameristar St. Charles		23.9	%		22.9	%		23.9	%		23.1	%
Ameristar Kansas City		21.3	%		18.8	%		21.2	%		18.8	%
Ameristar Council Bluffs		29.9	%		30.6	%		28.3	%		27.4	%
Ameristar Vicksburg		29.3	%		30.2	%		32.9	%		31.8	%
Ameristar Black Hawk		20.0	%		17.1	%		19.8	%		9.3	%
Jackpot Properties		22.0	%		21.2	%		20.6	%		19.5	%
Operating income margin from historical properties		18.1	%		18.2	%		18.2	%		17.1	%
East Chicago⁽¹⁾		-3.6	%		—			-3.6	%		—
Consolidated operating income margin		17.3	%		18.2	%		17.9	%		17.1	%

EBITDA margins ⁽³⁾
Ameristar St. Charles		31.1	%		32.3	%		32.5	%		32.2	%
Ameristar Kansas City		30.1	%		27.3	%		30.1	%		27.6	%
Ameristar Council Bluffs		37.1	%		37.9	%		35.6	%		34.5	%
Ameristar Vicksburg		38.8	%		39.2	%		42.0	%		40.7	%
Ameristar Black Hawk		32.2	%		31.4	%		32.4	%		24.2	%
Jackpot Properties		27.8	%		27.0	%		26.9	%		25.7	%
EBITDA margin from historical properties		26.7	%		27.4	%		27.2	%		26.4	%
East Chicago⁽¹⁾		0.8	%		—			0.8	%		—
Consolidated EBITDA margin		25.8	%		27.4	%		26.9	%		26.4	%


(1)		We acquired the East Chicago property on September 18, 2007, and operating results for this property are included only for the three and nine months ended September 30, 2007.

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

(3)		EBITDA margin is EBITDA 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 Ended September 30,						Nine Months Ended September 30,
	2007			2006			2007			2006
Ameristar St. Charles:
Operating income	$	16,959		$	16,253		$	51,794		$	49,838
Depreciation and amortization		5,132			6,651			18,555			19,822

EBITDA	$	22,091		$	22,904		$	70,349		$	69,660


Ameristar Kansas City:
Operating income	$	13,488		$	11,745		$	40,443		$	35,676
Depreciation and amortization		5,646			5,287			17,011			16,666

EBITDA	$	19,134		$	17,032		$	57,454		$	52,342


Ameristar Council Bluffs:
Operating income	$	13,431		$	14,222		$	38,117		$	37,586
Depreciation and amortization		3,223			3,349			9,894			9,873

EBITDA	$	16,654		$	17,571		$	48,011		$	47,459


Ameristar Vicksburg:
Operating income	$	9,339		$	9,923		$	33,029		$	32,821
Depreciation and amortization		3,052			2,956			9,199			9,134

EBITDA	$	12,391		$	12,879		$	42,228		$	41,955


Ameristar Black Hawk:
Operating income	$	4,832		$	3,825		$	13,689		$	5,384
Depreciation and amortization		2,945			3,183			8,664			8,653

EBITDA	$	7,777		$	7,008		$	22,353		$	14,037


Jackpot Properties:
Operating income	$	4,567		$	3,963		$	11,604		$	10,150
Depreciation and amortization		1,205			1,080			3,589			3,242

EBITDA	$	5,772		$	5,043		$	15,193		$	13,392


East Chicago:
Operating loss	$	(331	)	$	—		$	(331	)	$	—
Depreciation and amortization		406			—			406			—

EBITDA	$	75		$	—		$	75		$	—


Corporate and other:
Operating loss	$	(16,332	)	$	(13,678	)	$	(49,136	)	$	(41,960	)
Depreciation and amortization		923			823			2,733			2,469

EBITDA	$	(15,409	)	$	(12,855	)	$	(46,403	)	$	(39,491	)


Consolidated:
Operating income	$	45,953		$	46,253		$	139,209		$	129,495
Depreciation and amortization		22,532			23,329			70,051			69,859

EBITDA	$	68,485		$	69,582		$	209,260		$	199,354

RECONCILIATION OF EBITDA TO ADJUSTED EBITDA
(Dollars in Thousands)
(Unaudited)


	Three Months Ended
	September 30, 2007
EBITDA	$	68,485
St. Charles hotel pre-opening costs		529
East Chicago acquisition costs		770
East Chicago transition and rebranding costs		343

Adjusted EBITDA	$	70,127

Use of Non-GAAP Financial Measures

Securities and Exchange Commission Regulation G, “Conditions for Use of Non-GAAP Financial Measures,” prescribes the conditions for use of non-GAAP financial information in public disclosures. We believe our presentations of the following non-GAAP financial measures are important supplemental measures of operating performance to investors: earnings before interest, taxes, depreciation and amortization (EBITDA), and Adjusted EBITDA. The following discussion defines these terms and why we believe they are useful measures of our performance.

EBITDA and Adjusted EBITDA

EBITDA is a commonly used measure of performance in our industry that we believe, when considered with measures calculated in accordance with United States generally accepted accounting principles, or GAAP, gives investors a more complete understanding of operating results before the impact of investing and financing transactions and income taxes and facilitates comparisons between us and our competitors. Management has adjusted EBITDA, when deemed appropriate, for the evaluation of operating performance because we believe that the exclusion of certain non-recurring items is necessary to provide the most accurate measure of our core operating results and as a means to compare period-to-period results. We have chosen to provide this information to investors to enable them to perform more meaningful analysis of past, present and future operating results and as a means to evaluate the results of core ongoing operations. We do not reflect such items when calculating EBITDA; however, we adjust for these items and refer to this measure as Adjusted EBITDA. We have reported this measure to our investors and believe the inclusion of Adjusted EBITDA will provide consistency in our financial reporting.

We use Adjusted EBITDA in this press release because we believe it is useful to investors in allowing greater transparency related to a significant measure used by management in its financial and operational decision-making. Adjusted EBITDA is a significant factor in management’s internal evaluation of total company and individual property performance and in the evaluation of incentive compensation related to property management. Management also uses Adjusted EBITDA as a measure in determining the value of potential acquisitions and dispositions it may evaluate. Externally, we believe these measures continue to be used by investors in their assessment of our operating performance and the valuation of our company.

Adjusted EBITDA, as used in this press release, reflects EBITDA adjusted for acquisition, transition and rebranding costs related to Resorts East Chicago and pre-opening expenses associated with the St. Charles hotel project. In future periods, the adjustments we make to EBITDA in order to calculate Adjusted EBITDA may be

different than or in addition to those made in this release. The foregoing tables reconcile Adjusted EBITDA to EBITDA and operating income, based upon GAAP.

Limitations on the Use of Non-GAAP Measures

The use of EBITDA and Adjusted EBITDA has certain limitations. Our presentation of EBITDA and Adjusted EBITDA may be different from the presentation used by other companies and therefore comparability among companies may be limited. Depreciation expense for various long-term assets, interest expense, income taxes and other items have been and will be incurred and are not reflected in the presentation of EBITDA or Adjusted EBITDA. Each of these items should also be considered in the overall evaluation of our results. Additionally, EBITDA and Adjusted EBITDA do not consider capital expenditures and other investing activities and should not be considered as a measure of our liquidity. We compensate for these limitations by providing the relevant disclosure of our depreciation, interest and income tax expense, capital expenditures and other items both in our reconciliations to the GAAP financial measures and in our consolidated financial statements, all of which should be considered when evaluating our performance.

EBITDA and Adjusted EBITDA should be used in addition to and in conjunction with results presented in accordance with GAAP. EBITDA and Adjusted EBITDA should not be considered as an alternative to net income, operating income or any other operating performance measure prescribed by GAAP, nor should these measures be relied upon to the exclusion of GAAP financial measures. EBITDA and Adjusted EBITDA reflect additional ways of viewing our operations that we believe, when viewed with our GAAP results and the reconciliations to the corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. Management strongly encourages investors to review our financial information in its entirety and not to rely on a single financial measure.

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