356213--2/26/2010--PINNACLE_ENTERTAINMENT

related topics

{debt, indebtedness, cash}

{condition, economic, financial}

{operation, natural, condition}

{cost, contract, operation}

{loan, real, estate}

{regulation, change, law}

{regulation, government, change}

{competitive, industry, competition}

{tax, income, asset}

{personnel, key, retain}

{cost, operation, labor}

{financial, litigation, operation}

Our business is particularly sensitive to reductions in consumers discretionary spending as a result of downturns in the economy or other changes we cannot accurately predict. Our substantial funding needs in connection with our development projects and other capital-intensive projects will require us to raise substantial amounts of funding from outside sources and/or conduct asset sales If we fail to refinance our 8.25% senior subordinated notes due 2012 on a timely basis, amounts outstanding under our amended and restated credit agreement may be treated as a current liability on our year-end 2010 balance sheet, which could have adverse consequences. Our present indebtedness and projected future borrowings could adversely affect our financial health; future cash flows may not be sufficient to meet our obligations and we might have difficulty obtaining additional financing; we may experience adverse effects of interest-rate and exchange-rate fluctuations Our indebtedness imposes restrictive covenants on us Servicing our indebtedness will require a significant amount of cash, and our ability to generate sufficient cash depends on many factors, some of which are beyond our control Insufficient or lower-than-expected results generated from our new developments and acquired properties may negatively affect the market for our securities; our new properties may compete with our existing properties. Many factors could prevent us from completing our construction and development projects as planned, including the escalation of construction costs beyond increments anticipated in our construction budgets. The loss of management and other key personnel could significantly harm our business and we may not be able to effectively replace members of management who have left the company. The gaming industry is very competitive and increased competition, including by Native American gaming facilities, could adversely affect our profitability. Our industry is highly regulated, which makes us dependent on obtaining and maintaining gaming licenses and subjects us to potentially significant fines and penalties. Potential changes in the regulatory environment could harm our business. We could lose the right to open our River City casino if we fail to meet the conditions imposed by the Missouri Gaming Commission. We may not meet the conditions for the maintenance of the licenses that we plan to utilize for our Sugarcane Bay and Baton Rouge projects We operate in a highly taxed industry and may be subject to higher taxes in the future. If the jurisdictions in which we operate increase gaming taxes and fees, our results could be adversely affected. The global financial crisis and recession has affected our business and financial condition, and may continue to affect us in ways that we currently cannot accurately predict. Adverse weather conditions, road construction, gasoline shortages and other factors affecting our facilities and the areas in which we operate could make it more difficult for potential customers to travel to our properties and deter customers from visiting our properties. Our results of operations and financial condition could be materially adversely affected by the occurrence of natural disasters, such as hurricanes, or other catastrophic events, including war and terrorism. Natural disasters have made it more challenging for us to obtain similar levels of Weather Catastrophe Occurrence/Named Windstorm, Flood and Earthquake insurance coverage for our properties compared to the levels before the 2005 hurricanes. Work stoppages, organizing drives and other labor problems could negatively impact our future profits. We are subject to litigation which, if adversely determined, could cause us to incur substantial losses. We face environmental and archaeological regulation of our real estate.

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356213--2/26/2010--PINNACLE_ENTERTAINMENT_INC