Just two months after actor-director Kevin Costner closed his Midnight Star Casino in Deadwood, South Dakota, the Celebrity Hotel and Casino recently filed for Chapter 11 bankruptcy protection. The property is owned by Rolling Hills Farms Investments Inc. Ken Gienger, who has managed the Celebrity since 1998, stressed the property is not closing. He said, “Reorganization is the conversation I’ve had with the owner. Our goal is to continue to improve and come out with the best result that is possible. It might be good, it might be bad, but it will work out.” Opened in 1998, the Hollywood-themed hotel and casino features displays of celebrity memorabilia and has 22 employees, 90 slot machines and 22 hotel rooms, Gienger said.
Court documents indicate the hotel-casino had total assets of nearly$6.4 million and more than $3.5 million owed on two loans from First Interstate Bank.
Mike Rodman, executive director of the Deadwood Gaming Association, said, “Obviously we have had a 5-year period of reduced revenues for Deadwood gaming, which we’ve tried to signal the alarm bells about. Any industry that has that period of decline in revenues is going to feel the negative impacts. We’ve seen it mainly impacting Main Street of Deadwood more than other properties.” He added a committee will be formed to review gambling-revenue issues and study how resolve them. Rodman noted Deadwood still generates $100 million a year in casino revenue.
