Exhibit 99.1

Missouri Gaming Commission

January 27, 2010

Certified Mail/Return Receipt Requested
Chris Strobbe, General Manager
President Riverboat Casino-Missouri, Inc.
1000 North Leonor K Sullivan Blvd.
St. Louis, MO 63102

Dear Mr. Strobbe:

Pursuant to 11 CSR 45-13.050, you are hereby notified of proposed disciplinary action against President Riverboat Casino-Missouri, Inc., as the holder of a Class B riverboat gambling license issued by the Missouri Gaming Commission. Enclosed please find the Preliminary Order for Disciplinary Action (“Order”), DC-10-001, which sets forth the facts in support of the proposed discipline and references the regulatory and statutory sections involved. The Commission’s Order also proposes a revocation of your Class B license.

You may file a request for a hearing by serving such a request on the Commission Executive Director within 30 days of the date of the attached Order. The hearing would be governed by 11 CSR 45-13. If a request for hearing is not filed, the proposed disciplinary action set forth in the Order shall become a final order of the Commission.

If you would like to discuss a possible settlement in this matter, please contact the Commission’s General Counsel, Christopher W. Hinckley.

		Sincerely,
		/s/ Gene McNary
		Gene McNary
		Executive Director

GM/af
Enclosure
cc:     Jerry Riffel, Esq.

IN THE MISSOURI GAMING COMMISSION

In Re:			)
			)			DC-10-001
President Riverboat Casino-Missouri, Inc.			)
d/b/a President Casino			)

PRELIMINARY ORDER FOR DISCIPLINARY ACTION

Comes now the Missouri Gaming Commission acting in its official capacity pursuant to 11 CSR 45-13.050, and states as follows:

1.		The Missouri Gaming Commission (the “Commission”) is a state commission created under Chapter 313, RSMo (2000), with jurisdiction over gaming activities, including riverboat gambling activities, in the State of Missouri.
2.		The Commission granted Pinnacle Entertainment Inc. (“Pinnacle”) a Class A riverboat gaming license to develop and operate Class B riverboat gaming licenses in the State of Missouri.
3.		Pinnacle is the parent organization or controlling entity of President Riverboat Casino-Missouri, Inc. (“the President”).
4.		The Commission granted a Class B riverboat gaming license to the President to maintain, conduct gambling games on and operate an excursion gambling boat, collectively identified as the President Casino aboard the excursion gambling boat Admiral.
5.		As the holder of a Class B license, the President is subject to the provisions of Sections 313.800 to 313.850, RSMo (2000), and the regulations promulgated thereunder by the Commission.
6.		Pinnacle purchased the President on December 21, 2006, during fiscal year (“FY”) 2007.1 In FY 2007 the President casino generated $67,269,234 in Adjusted Gaming Revenues (“AGR”) (-6%)2 and 2,880,681 in Admissions (-14%), offered 827 electronic gaming devices (“BGD’s”) and 28 table games, employed 552 and provided food service from a buffet and deli.
7.		During FY 2008, the first complete fiscal year of Pinnacle’s ownership, the President generated $44,988,902 in AGR (-33%) and 2,146,061 in Admissions (-26%), offered 729 EGD’s and 23 table games, employed 402 and provided food service from a buffet and deli.

8.		On December 20, 2007 Pinnacle’s Lumiere Place Casino (“Lumiere”) opened on Laclede’s Landing, 1,000 feet from the President Casino. For FY 2009, the first complete fiscal year during which both Lumiere and the President were open and operating, the President casino generated $23,263,288 in AGR (-48%) and 1,178,406 in Admissions (-45%), offered 696 EGD’s and 9 table games, employed 239 and, after closing the buffet and deli, only provided food service from the first floor bar. Also during FY 2009 Pinnacle removed gaming devices from the President’s second deck, reducing the utilized square feet of gaming space from 53,800 to 27,993.
9.		On March 24, 2009 the Commission ordered Pinnacle to appear and to present plans on improving the President’s overall operations and performance. In their response (Attached Exhibit A), submitted prior to the hearing, Pinnacle acknowledged their deliberate policy of minimizing offerings and stated they were establishing a “base line” to help increase profitability and they were avoiding the “expenses leading revenue” policy that led to a prior owner’s bankruptcy.3 In the same communication Pinnacle assured the Commission that, upon repair or replacement of the President, they would improve the President’s offerings, marketing and staffing levels. It should be noted, the overall performance and offerings of the President Casino under prior ownership, and during bankruptcy, were substantially higher than under ownership of Pinnacle Entertainment, Inc. (President Casinos, Inc. EGD/slots Table Game offerings and gaming revenues 1996 to 2006 attached as Exhibit B).
10.		Pinnacle’s plans for the President began to take form shortly after the opening of Lumiere. In a conference call with investors on March 3, 20084 Pinnacle CEO Dan Lee5 described the President’s role as “kind of an adjunct” to Lumiere but also recognized the possible value of its license if the referendum capping licenses was passed (“Prop A”).6 In a May 7, 2008 conference call with investors,7 Lee confirmed the importance of the President’s license and the cap when he stated, “if the referendum were to pass, it [President] probably stays open permanently, it’s just a question of where do we move it.”
11.		On November 4, 2008 Prop A passed placing a cap on the number of gaming licenses in the State of Missouri. On November 7, 2008 Dan Lee spoke with Pinnacle’s investors about the President.8 During the call, Lee acknowledged increasing losses and confirmed Pinnacle’s approach to the President in stating, “So, we’ve basically kept the casino open just because we didn’t want to lose the license especially with an initiative coming down the road that would cap the number of licenses.” Later during the same call, Lee elaborated, “we are focused on diminishing the loss as much as possible. So, we’re looking at reducing hours, reducing the marketing, reducing the food service options and so on because frankly we make more money if the person is in Lumiere Place. We may have kept the heat on (emphasis added) but we are going to have this thing running in slow mode.” Lee added they planned to reduce operating hours for table games and “close the buffet and tell people to go up the street to Lumiere Place to eat.” In summing up Pinnacle’s approach to operating the President Lee stated, “there is no reason to operate two casinos next to each other where one is brand new and beautiful and the other is not.”

12.		In 2009 it became apparent that Pinnacle had no substantive plans to improve the overall operations and revenues at the President and contrary to the expectations of the Commission, Pinnacle planned to continue to operate the President in “slow mode” as long as it was located near Lumiere. In a March 21, 2009 conference call with investors,9 Dan Lee confirmed further reductions and laid out his plans for the President’s future in stating, “We have scaled it back dramatically to try to reduce the losses of EBIT and we have reduced the hours of operation. We have reduced the hours that table games work. We’ve closed the foodservice on it. I think the heat is still on (emphasis added). And so the objective there is to minimize the losses while we seek to move it. If it takes the Gaming Commission years to give us permission to move it, for us to find the right place, we will just sustain the losses for as long as we have to.”
13.		A comparison of the President’s AGR figures for FY 2010 to Missouri’s remaining casinos, both rural and urban, reveals how substandard the President’s operations have become. Amongst urban-based casinos in the State, the President’s AGR contribution for FY 2010 is not just at the bottom of the list, but approximately one tenth of the average AGR contribution of the other urban-based casinos. Further evidence of the President’s substandard revenues can be seen when comparing the President to Missouri’s rural-based casinos. Although the President is an urban-based casino, it’s revenues numbers for FY 2010 to date are less than any of the State’s rural-based casinos and less than half of the average AGR contribution of Missouri’s rural-based casinos. The same stark results can be seen in a comparison of Admissions, (Attached as Exhibit C).
14.		Further, a comparison of the President’s present gaming floor size, slot and table game offerings, to Missouri’s rural and urban based casinos, also reveals how substandard the President’s operations have become. The average size gaming floor for an urban-based casino in Missouri is 90,000 sq. ft. The President is currently utilizing only 27,993 sq. ft. of its available 58,300 sq. ft. The average number of slots offered at an urban-based casino is 2,200. The President presently offers 690 slots. The average number of table games offered in Missouri’s urban-based casinos is 63. The President offers 9 table games. The President’s use of gaming space along with their slot and table game offerings are well below the average in Missouri for urban-based casinos. The President’s gaming floor and offerings are more in tune with one of Missouri’s rural-based casinos, but is still well below average in slot and table game offerings. (Attached as Exhibit D).

15.		At some point during 2009, it appears that Pinnacle may have completed their reductions at the President and established a “base line” for operations that minimized their costs and ensured that the President did not compete with Lumiere. In communications with the Commission, Pinnacle has represented their intent to increase the President’s offerings and improve its revenue, but contingent on a chance to repair or replace the President at its present location. Based upon the words, actions, inactions and expressed motives of its employees and/or agents, it’s apparent that Pinnacle will continue to operate the President at its present levels as long as it neighbors Lumiere Place Casino.
16.		Under Pinnacle’s direction and management the President has devolved into an obsolete, unproductive and substandard casino operation. The gaming revenue and admission fees collected from the President have been in a steady, and sometimes steep, decline since the opening of Lumiere in December of 2007. Under Missouri law there is a cap on gaming licenses that will soon be fixed at thirteen (13), one of which is the President. The revenue to the State provided by casinos has become essential to our States’ economy. The number of casinos capable of making these essential contributions has been fixed through a vote of the people. Pinnacle’s deliberate efforts to downgrade and minimize the offerings at the President have turned a valuable gaming license into an unproductive and substandard casino operation which is harmful to our State and its people.
17.		Section 313.807.1, RSMo details the criteria and costs associated with gambling boat licensure and periodic relicensure, and notes that “the commission may reopen licensing hearings at anytime.”
18.		Section 313.805(3), RSMo, states the Commission has the power to adopt standards under which all excursion gambling boat operations shall be held and standards for the facilities within which the gambling operations are to be held.
19.		Section 313.805(6), RSMo, states the Commission may assess any appropriate administrative penalty against a licensee, including, but not limited to, suspension, revocation, and penalties of an amount determined by the Commission up to three times the highest daily amount of gross receipts derived from wagering on the gambling games, whether unauthorized or authorized, conducted during the previous twelve months.
20.		Section 313.812.14, RSMo, states a holder of any license is subject to imposition of penalties, suspension or revocation of such license for any act or failure to act by himself or his agents or employees, that is injurious to the public health, safety, morals, good order and general welfare of the people of the state of Missouri, or that would discredit or tend to discredit the Missouri gaming industry or the state of Missouri.

21.		Section 313.812.14(1), RSMo, states that a licensee may be disciplined for failing to comply with or make provisions for compliance with Sections 313.800 to 313.850, the rules and regulations of the commission or any federal, state or local law or regulation.
22.		Section 313.812.14(2), RSMo, states that a licensee may be disciplined for failing to comply with any rule, order or ruling of the Commission or its agents pertaining to gaming.
23.		11 CSR 45-5.053(2), states, “It is the policy of the commission to require that all riverboats and gaming conducted on riverboats be operated in a manner suitable to protect the public health, safety, morals, good order and general welfare of Missouri. Responsibility for the employment and maintenance of suitable methods of operation rests with the holder of an operator’s license and willful or persistent use or toleration of methods of operation deemed unsuitable will constitute grounds for disciplinary action, up to and including license revocation.”
24.		11 CSR 45-5.053(3)(A), states that the holder of a Class A license is expressly prohibited from, “failing to exercise discretion and good judgment to prevent incidents which might reflect on the repute of the state of Missouri and act as a detriment to the development of the industry.”
25.		11 CSR 45-5.053(3)(J), states that the holder of a Class A license is expressly prohibited from permitting, “any type of conduct on the riverboat which reflects negatively on the repute of the state of Missouri or acts as a detriment to the gaming industry.”
26.		11 CSR 45-4.020(10), states that rules adopted prior to May 30, 2008 which previously referred to a Class A licensee shall refer to both a Class A licensee and a Class B licensee unless specifically identified otherwise.
27.		The actions or omissions of employees or agents of the President in purposely downgrading the President’s offerings and revenues, all of which has been injurious to the people of the Missouri, violates Section 313.812.14, RSMo, 11 CSR 45-5.053(3)(A) & (J), and 11 CSR 45-5.053(2). The Company is subject to discipline for such violations under Sections 313.807.1, 313.805(3) & (6), and 313.812.14(1) & (2), RSMo.
28.		Under Section 313.805(6), RSMo, the Commission has the power to assess an appropriate administrative penalty against the President, as the holder of a Class B license.

THEREFORE, it is proposed that the Commission revoke the class B license of the President Riverboat Casino — Missouri, Inc. for the violations set forth herein.

CERTIFICATE OF SERVICE

The undersigned hereby certifies that he caused a true and correct copy of the foregoing to be mailed, postage prepaid, this 27^th day of January, 2010, to:

Chris Strobbe, General Manager
President Riverboat Casino-Missouri, Inc.
1000 North Leonor K Sullivan Blvd.
St. Louis, MO 63102

Exhibit A

Pinnacle Entertainment letterhead

June 2, 2009

Mr. Gene McNary, Executive Director
Missouri Gaming Commission
3417 Knipp Drive
Jefferson City, Missouri 65109

RE:     Future of President Casino

Dear Mr. McNary:

In response to the Order of the Missouri Gaming Commission (“MGC”) issued on April 22, 2009, Pinnacle Entertainment, Inc. (“Pinnacle”) provides the following response to the questions included in the Order. I have repeated each of the MGC’s questions in bold, which are followed by our response.

1)

Prior to re-licensure, on July 19, 2010, the Admiral’s hull will lose its ABS certification and will no longer be able to carry passengers. Assuming this date holds true,

a)

What, if any, are Pinnacle’s plan(s) to overcome this obstacle?

Response: Pinnacle has received an estimate for repairing the Admiral’s hull, which it is currently reviewing. In recognition of the fact that the hull repair may not be feasible or cost-effective, Pinnacle is also studying the feasibility of replacing the Admiral vessel with another vessel, most probably with one of the boats it acquired from Harrah’s in Lake Charles, Louisiana which are currently being moored in Orange, Texas.

As previously reported to the MGC, Pinnacle also continues to work on the potential for acquisition of a 30 acre site at the Chain of Rocks (the “Chain of Rocks Site”). The most likely scenario at this point is that initially, Pinnacle would continue to operate the repaired or new excursion gambling boat at the existing site with any proposed move to the Chain of Rocks Site or other location to be accomplished at a later date. The following information in respect of the Chain of Rocks Site was included in Pinnacle’s prior response to you and is provided again, with relevant updates.

On July 2, 2008, Pinnacle entered into a Real Estate Option Contract with the Beth A. Daniele Revocable Living Trust, for 30 acres of land located in the City of St. Louis at or near 11110-11180 Riverview Drive. To date, Pinnacle has completed title work and a survey of the property. Pinnacle and Daniele’s counsel continue to make progress in obtaining removal of title issues to the Chain of Rocks Site.

The survey completed on behalf of Pinnacle disclosed a pipeline easement in favor of Midwest Pipeline which dissects the tract and provides that nothing can be built or constructed over the easement without the written approval of the easement holder. Due diligence indicated the easement has been abandoned and nothing was ever constructed by Midwest. Counsel for the Daniele Trust filed a declaratory judgment action and quiet title suit in the St. Louis Circuit Court, Twenty-Second Judicial Circuit of the State of Missouri entitled Beth A. Daniele, Trustee of the Revocable Living Trust Agreement of Beth A. Daniele v. Midwest Pipeline, L.P., Cause No. 0822-CC09861. Service was had on Defendant by publication due to the fact that Midwest Pipeline was no longer in business and a successor to Midwest Pipeline could not be identified. Defendant failed to file an Answer and on May 19, 2009, a hearing was held. Defendant failed to appear at the hearing wherein the Court granted Default Judgment in favor of Plaintiff and the easement was abandoned. Daniele Counsel and Pinnacle are working with the title company on resolving several technical concerns of the title company with whether a successor company to the original grantee may need to release the same easement. Hopefully this last issue will be resolved and the exception no longer outstanding.

The title work disclosed several other issues which would keep the Daniele Trust from providing a clean title to the property as follows:

a. A stray deed existed on the property in favor of a Stephen Maeras and Jerry Stephen Maeras dated December 28, 1961. Counsel for Daniele filed a declaratory judgment action in the St. Louis Circuit Court, Twenty Second Judicial Circuit of the State of Missouri entitled Beth A. Daniele, Trustee of the Revocable Living Trust Agreement of Beth A. Daniele v. Jerry Stephen Maeras, Case No. 0822CC2135. An answer was filed by Maeras on September 29, 2008. The Daniele Trust filed a Motion for Summary Judgment. On April 7, 2009, the Court found in favor of Plaintiff and any and all right Defendant may have had in the property was divested from Defendant to Beth A. Daniele. Daniele counsel and Pinnacle have asked the title company to remove the exception on the basis of the decision of the Circuit Court.

b. A Petition for Declaratory Judgment, Quiet Title and Conversion was filed on behalf of Northshore Realty on October 15, 2008, against the Daniele Trust. A Notice of Lis Pendens was filed on October 9, 2008. Northshore was formed as an LLC and had three members: James Sauter, John Prindable and Anthony Daniele. In the lawsuit Northshore claims the Beth Daniele Trust was set up to hold the Chain of Rocks property as a nominee of Northshore. Northshore makes this claim to the title even though in 2002 Northshore transferred the fee interest to the Beth A. Daniele Revocable Living Trust with no apparent reference to the nominee status of the Trust. Three years later in 2005, Northshore filed an Affidavit with the Recorder of Deeds claiming that the Trust held the property as a straw party. In 2006, Northshore filed a second affidavit in which Northshore states that the straw party status is canceled and of no further effect. Northshore further states in the cancellation that all interest in the Daniele Trust vests in the Beth A. Daniele Revocable Living Trust and is not subject to any interest of James J. Sauter and John T. Prindable. Motions for Summary Judgment have been filed on behalf of the Daniele Trust and Anthony Daniele and Pier St. Louis which are still pending hearing.

Because the Northshore title issue has not yet been resolved, the Daniele Trust and Pinnacle entered into a Ninth Amendment to Real Estate Option Contract in May, 2009, providing for an extension of the Initial Option term to July 31, 2009. There are also several normal title related requirements that would need to be satisfied by Daniele including the removal of the above additional title exceptions.

b)

Is there legal authority for the proposed action(s)?

Response: Pinnacle is not aware of any legal restriction on the MGC’s authority to approve a repaired or new vessel at the current Admiral site. In particular, RS 313,800 defines “excursion gambling boat” as “a boat, ferry or other floating facility licensed by the commission on which gambling games are allowed,” RS 313.812.1 sets out certain standards for excursion gambling boats. 11 CSR 45-6.010-.025 states the regulatory standards for excursion gambling boats. Assuming that a repaired or new excursion gambling boat meets all legal standards, the MGC may approve its operation by a licensee subject to the Licensee’s filing of amendments to the relevant MGC exhibits to Licensee’s approved application. It should also be noted that as a practical matter, no vessel has an unlimited life and at some point, all excursion gambling boats would most likely have to undergo major repairs or be replaced.

Pinnacle also believes that the MGC may approve a relocation of the current license to the Chain of Rocks Site in the event that proves feasible. Attached as Exhibit “1” is the preliminary analysis by Pinnacle’s counsel of the legal issues surrounding this possible move.

c)

Please address the following for each business plan:

	•		Timeline/events for project
	•		Down time for gaming operations

Response: Until it is determined whether repair or replacement of the existing excursion gambling boat is the most feasible, it is difficult to provide an accurate estimate on either the timeline or downtime. However, generally, we believe that the repair alternative would obviously include a longer timeline and more downtime. If it is determined that the existing excursion gambling boat will be replaced, we would intend to begin planning in the very near future. Such planning would include (i) repair and refurbishing of one of the Harrah’s boats or some other boat that may be acquired; (ii) applying for and receiving approvals to move the new vessel to the existing site; and (iii) applying for and receiving approval for the new vessel from ABS and the MGC. The downtime for a replacement vessel would be significantly less, perhaps as little as up to ninety (90) days (subject to receipt of all necessary approvals) after the new vessel arrives at the exiting site. Pinnacle will also take necessary steps to mail a notice to all President guests informing them of downtime as well as providing incentives for visiting Lumiere while the President is closed. We hope this will minimize any revenue losses.

•

Required changes to existing license

Response: In the event that Pinnacle applies to the MGC for approval to repair or replace the current excursion gambling boat for operation at the current location, there will be no required changes to the existing Class A and Class B licenses. Similarly, Pinnacle believes that if it applies to the MGC for approval to move the excursion gambling boat to a new location (e.g., Chain of Rocks Site), the existing Class A and Class Be licenses would remain the same (other than the approval for the specific location of operation). See 11 CSR 45-4,020 and Exhibit “1.”

•

Third party approvals, inspections & certifications

Response: Obviously, MGC approval will be required for any repair/replacement of the excursion gambling boat, and for any move of the excursion gambling boat. Additionally, ABS certification will be required for a repaired or new excursion gambling boat. Pinnacle also contemplates that there will be certain approvals required from the City of St. Louis. Pinnacle continues to study this issue and will update the MGC with any new information on June 23, 2009, or as more information become available.

•

Likelihood of success

Response: Assuming that all required approvals are obtained for either alternative (i.e., repair or replacement at the existing site), Pinnacle believes that there is a reasonable likelihood of success for the ongoing operations of the excursion gambling boat. Eventually, if the excursion gambling boat is relocated to the Chain of Rocks Site (or some other site), we believe that additional revenues could be generated. We currently estimate that the Chain of Rocks Suite would cost at least $50 million to develop, including land acquisition, parking lot and the vessel. That would be a substantial initial investment. However, given the variables involved, including market and financing considerations, it is premature to provide an answer that does not involve speculation.

•

Long term prognosis

Response: See response immediately above.

2)

Prior to relicensure, how does Pinnacle plan to improve the overall operations and performance of the President Casino, including, but not limited to, the following areas:

	a)		Operating hours
	b)		Staffing
	c)		Amenities
	d)		Role/contributions to Community
	e)		Gaming revenue
	f)		Other categories affecting licensing.

Response: As evidenced by the performance of Lumiere Place, we feel a better product leads to better results. The April 2009 numbers represented a major accomplishment and was the largest difference between Lumiere and Casino Queen revenues. Lumiere was able to exceed Casino Queen revenues by approximately $4.3 million, thereby keeping these revenues within the State of Missouri. With the changes we have made at the President, we have also been able to average revenues of more than $2 million a month in the first four months of 2009. It is extremely unfortunate that we have been unable to continue any momentum due to issues completely outside of our control, specifically the flooding of the Mississippi River.

Even with a new or repaired vessel on the same site, we are still very much at the mercy of the river. This impacts not only the opening and closing of the vessel, but also available points of access and exit, as well as parking. The number of days closed in the last fourteen months has been fifty-two days, but the number of days without levy parking is much greater, approximately eight months out of the last fourteen months. The city also erects flood walls prior to flooding which closes two out of three entry points to the President, Prior to the closure in April of 2008, the vessel was not forced to close since April of 2002, for a total of seven days.

Our goal with a new or repaired-vessel is to reestablish a gaming option that is still very much for the “value minded” guest. Our approach will be to be comfortable, inviting and catering to the local customer, with rewards based on loyalty and frequency. We will fill the role of catering to different segments of the market. With the new vessel we will look to upgrade the food offering, considering options like the normal buffel or a 24-hour diner, or a hybrid, similar to what we have at Lumiere. This helps us to flex labor and keep product offerings fresh based on demand. We would still look to have the same number of gaming positions that we have now, all located on one level. This allows us to flex labor with volume as well as continue to improve service levels. By controlling labor, we can “reinvest” more with marketing strategies to drive more revenue. If we can continue to drive more revenue, we will in turn attempt to extend hours to lead to even greater revenues. This in turn will lead to additional staffing.

Some of the key changes and improvements made in the first four months that have led to profitability are detailed below.

Based on 2008 business volumes, it was necessary to review the staffing needs on the President. In 2007 the President employed 523. Once Lumiere Place opened in 2009, 150 employees transferred to Lumiere Place. In late 2008 and early 2009, we reduced staff by 125. The current staffing levels at the President are 240.

Again, with Lumiere Place opening, both management teams coordinated efforts to become more efficient in marketing and purchasing. On the marketing side, the review of the database led to a change to variable cost play-base promotions, leading to less exposure to redeem no play as well as fixed costs whether business was present or not. Coordinating the marketing calendars for Lumiere Place and the President eliminated the confusion for customers and employees. This has enhanced the loyalty factor in both properties and prevented competition on the marketing front.

Purchasing has seen several efficiencies and volume based savings with all contracts reviewed and coordinated between the two properties, such as all food, beverage supplies, and collection contracts. Efforts continue between the two properties on minority vendor contracts.

On the operation side, the closure of the Poker Room and the elimination of sixty-one hours of operations in Table Games, moving all slot machines to one floor, and relocating deli to main floor, and the closure of the buffet, along with reduced hours in slot operations has shown profitable numbers.

We feel that our current staffing levels and hours of operation represent a base line, and have helped us achieve profitability in the last three months. Revenue and volume increases will lead to the additional hours and employees required which ultimately leads to a greater contribution to the community. We view our contributions as a combined contribution from all Pinnacle properties and our ability to contribute more to the community is based on driving volume and revenues. We are at a point with the President where we are avoiding the “expenses leading revenue” decisions made by the prior President owners that led to their bankruptcy.

Rest assured that our goal is to maximize the value of the license for our constituencies and the State of Missouri. We are very focused on addressing all of the legal and operational issues relating to our operations, as we have with all of our dealings in the State of Missouri, and to do what is in the best interest of our stake holders, including the communities in which we operate.

We appreciate the opportunity to address these issues and look forward to meeting with the MGC on June 23, 2009.

Exhibit B

President Casino

Year		EGDs				Table Games				AGR				Admissions
1996			1,137				68			$	70,036,123.00				3,583,318
1997			1,118				66			$	63,699,958.00				3,373,674
1998			1,240				60			$	57,589,734.00				3,015,066
1999			1,230				59			$	59,253,097.00				3,125,669
2000			1,222				48			$	60,417,285.00				3,878,234
2001			1,238				49			$	64,840,032.00				3,829,663
2002			1,251				47			$	79,115,932.00				4,232,438
2003			1,372				38			$	73,443,945.00				3,851,361
2004			1,100				38			$	71,843,574.00				3,659,048
2005			1,021				35			$	71,371,201.00				3,552,354
2006			816				28			$	71,798,659.00				3,367,614
Average			1,159				49			$	67,582,685.45				3,588,040

Exhibit C

		Admissions				AGR
		Fiscal Year				Fiscal Year
		Average				Average — $
Argosy			453,581.67				16,187,814.83
Harrah’s MH			665,248.83				25,132,485.67
Harrah’s KC			433,577.17				15,746,501.50
Isle KC			253,491.50				6,707,813.83
Lumiere Place			642,360.83				17,305,623.00
Ameristar KC			629,647.17				19,823,052.00
Ameristar SC			706,100.33				24,317,835.17
Total Urban Area — Average			540,572.50				17,888,732.29
Isle Boonville			192,272.33				6,727,579.83
Lady Luck			81,146.00				2,701,174.17
Mark Twain			102,007.83				2,993,940.17
St. Joseph			108,282.50				3,080,693.33
Total Rural Area — Average			120,927.17				3,875,846.88
President			95,854.83				1,794,329.00

Admission/AGR fiscal year average: Total admissions/AGR for fiscal year divided by number of months in current fiscal year.

Total Admissions fiscal year average for urban/rural area: Total fiscal year averages divided by number of casinos in area.

Exhibit D

Metro Casinos

Casino		Gaming Floor (sq.ft.)				Slots				Tables
Lumière			75,000				2,041				69
Harrah’s St. Louis			120,000				2,723				94
Ameristar St. Chas.			130,000				2,976				72
River City			90,000				2,100				65
Argosy			62,000				1,966				47
Harrah’s NKC			63,300				1,758				62
Ameristar KC			140,000				2,997				72
Isle of Capri — KC			45,300				1,201				22
AVERAGE:			90,700				2,220				63

President Casino

Gaming Floor (sq.ft.)		Slots				Tables
27,993			690				9

Rural Casinos

Casino		Gaming Floor (sq.ft.)				Slots				Tables
Terrible’s St. Jo			18,000				550				11
Terrible’s M. T.			18,000				650				14
Isle of Capri — Bnvl.			28,000				991				19
Lady Luck			21,400				652				15
AVERAGE:			21,350				711				15

President Casino

Gaming Floor (sq.ft)		Slots				Tables
27,993			690				9