Casino CEO Steps Down, Pinnacle Entertainment Changes Leadership

Casino News - November 11th, 2009 - Written by Glen

Pinnacle Entertainment, one of the major casino providers in the United States, announced on November 9th, 2009, that their Cheif Executive Officer, Daniel R. Lee, has resigned from his position. Lee, who was also a director of the company and chairperson, has stated that he wishes to pursue other "business interests."

This resignation came shortly after Lee had allegedly asked a member of the County Council to vote against a rival casino's zoning issue. It was also alleged that Lee stated to an assistant of that council member that this was Steve Stenger's worst move of his career in politics, and that Lee would not soon forget the choice that Stenger had made. The Missouri Gaming Commission will be investigating Lee's decision, due the rift between the council and the former CEO.

Richard Goeglein and John Giovenco have become the interim chairman and interim CEO, respectively, in order to fill the gap. Both had already been on the board, and both are expected to perform their duties as well as their predecessor. Pinnacle stocks had jumped 44 cents on that Monday afternoon.

Pinnacle operates casinos within Nevada, Louisiana, Missouri, Indiana, and even Argentina. Las Vegas has had tough times all around, Indiana recently received competition from the state of Ohio, and casinos overall have been suffering from a lack of stable revenue. In the third quarter of the most recent fiscal year, Pinnacle had been down nearly 37 cents per share, which equates to almost $22 million dollars.

Though Lee had been credited with taking a small time casino company and morphing it into something much more grand, the future of Pinnacle gaming without Lee is uncertain. While they are currently thriving, relatively speaking, Pinnacle may be faced with new hardships due to the restructuring of their board. Legal USA Online Casinos have an advantage in this sense, as they do not require large boards of executives to continue operation.

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