356213--3/9/2009--PINNACLE_ENTERTAINMENT

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{acquisition, growth, future}

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If we continue with the construction of our current development projects, we may need to amend certain covenants in our Credit Facility or obtain waivers from our lenders. We may not be able to renew or extend our Credit Facility or enter into a new credit facility in today s difficult markets. In addition, our ability to renew or extend our Credit Facility or to enter into a new credit facility may be impaired further if current market conditions continue or worsen. If we are able to renew or extend our Credit Facility, it may be on terms substantially less favorable than the current Credit Facility. We may face similar risks with respect to our outstanding bonds. Our business may be sensitive to reductions in consumers discretionary spending as a result of recent downturns in the economy as well as other factors that are difficult to predict and beyond our control. The global financial crisis and recession may have an effect on our business and financial condition in ways that we currently cannot accurately predict. Our present indebtedness and projected future borrowings could have adverse consequences to us; 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. The terms of our credit facility and the indentures governing our subordinated indebtedness impose operating and financial restrictions on us. Insufficient or lower-than-expected results generated from our new developments and acquired properties may negatively affect the market for our securities. 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. If we determine to proceed with our Atlantic City project, it will have many risks, and we may not realize the financial and strategic goals that are contemplated from its development. The gaming industry is very competitive and increased competition, including by Native American gaming facilities, could adversely affect our profitability. Our stock price has been and may remain volatile, and the value of our common stock may decline as a result of this volatility. Damage and closures caused by hurricanes in the Gulf Region make our results less predictable. Issues with respect to our insurance policies could affect our recovery of further insurance proceeds associated with the 2005 hurricane damage and related business interruption. 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 hurricane. We operate in a highly taxed industry and may be subject to higher taxes in the future. 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 could lose the right to open our River City project if we fail to meet the conditions imposed by the Missouri Gaming Commission. 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. The concentration and evolution of the slot machine manufacturing industry could impose additional costs on us. Adverse weather conditions, highway 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. The loss of management and other key personnel could significantly harm our business. 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. We face risks associated with growth and acquisitions. Private Securities Litigation Reform Act

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356213--3/9/2009--PINNACLE_ENTERTAINMENT_INC