Casino Atlantis in trouble?
Kerzner International Limited (NYSE:KZL) announces fourth
quarter results:
The future of Casino Atlantis is uncertain as Kerzner International
Limited today announced plans to discontinue Kerzner Interactive,
its online gaming operations.
Kerzner Interactive targeted play only from jurisdictions
that permitted online gaming. As these jurisdictions have
become more restrictive in their acceptance of play, the market
size has been reduced and competition has intensified. Without
the potential for expansion into other markets, including
the United States, the outlook for new business has substantially
decreased and achieving profitability is unlikely in the short-to-medium
term.
In June 2002, the Company had renegotiated a previous agreement
with Station Casinos ("Station"), granting to Station a renewable
option to purchase a 50% interest in Kerzner Interactive.
The Company and Station have mutually agreed to terminate
this transaction. The Company intends to wind down operations
by the end of the first quarter of 2003.
