Imperial Casino Files Chapter 11
by: Nina Sparanon.sparano@krdo.com
CRIPPLE CREEK – The Imperial Casino Hotel in Cripple Creek has declared chapter-11 bankruptcy.
This is the second Cripple Creek business to announce financial troubles within the last couple of weeks.
This time it’s not just the fault of the gloomy economy but also the boom of a casino giant that’s pushing business away from the downtown strip.
The new $80 million Wild Wood Casino has been turning an impressive profit since it’s doors opened this summer.
“The new Wild Wood Casino opening there added about 15% more slot machines in the city,” says Bob Brooker, General Manager of the Imperial Casino Hotel.
Brooker says the Wild Wood is taking business away from the Imperial. The new business isn’t the only reason why profits are down. Brooker adds since the smoking ban passed, his business has dropped 21%.
“The smoking ban has really hurt our gaming revenue that along with high price of gasoline.”
Chapter 11 bankruptcy is a way to help the casino get a grip on its debt.
“It gives us time to put a plan together and get the unsecured creditors to approve the plan they start paying them off, ” adds Brooker.
Kevin Werner, general manager of Wild Wood Casino says all Cripple Creek casinos have been feeling the profit pinch.
“We are watching our pennies we are controlling our expenses everyday we evaluate our revenues.”
The announcement of The Imperial’s bankruptcy comes on the heels of the unexpected closure of the wild horse casino. The Cripple Creek casino closed its doors without notice on Halloween.
Despite the disadvantage of a smaller casino like The Imperial, Brooker says his casino will stay afloat.
“We plan on being open many, many years.”
Both the managers at The Imperial and Wild Wood are banking on the passage of amendment 50. They both expect profits to bounce back if the city votes on more games and higher betting limits.
