Mesquite-based Black Gaming continues to post losses

Black Gaming’s losses continued to grow in the first quarter as the company deals with declining revenues and high interest expenses. The Mesquite-based casino operator posted a loss of $5.2 million for the first quarter ended March 31, a filing with the Securities and Exchange Commission shows.

The loss was an increase from the $4 million loss posted for the same time last year.

The loss was driven by a 27.5 percent decrease in revenue and $5.6 million in interest payments made during the quarter.

Revenues dropped to $27.9 million in the quarter from $38.6 million last year. Casino revenues fell 25.2 percent to $18.1 million.

The company cut costs by 26.1 percent driven by the closing of Oasis’ table games, company-owned restaurants and nightclub in December.

The property also reduced slot operations from 750 machines to 144, and closed the majority of its 900-room hotel to save money and drive customers to Black Gaming’s two other properties, Virgin River and CasaBlanca. The scale-back of Oasis’ operations enabled the company to reduce staffing levels by 26 percent from 2,300 workers on Dec. 31, 2007 to 1,700 on March 31.

The company was able to increase its cash holdings 50 percent to $17.2 million in the quarter.

The company is currently in default of $205.8 million in debt and has been negotiating a restructuring that could end in a Chapter 11 bankruptcy filing, the filing said.

Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or 702-477-3893.