<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
{X} Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934 for the period ended September 30, 1996
OR
{ } Transition Report Pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934
Commission file number: 1-8540
BALLY'S PARK PLACE, INC.
(Exact name of registrant as specified in its charter)
Delaware 36-3432384
(State or other jurisdiction (I.R.S. Employer
of incorporation or Identification No.)
organization)
Park Place & The Boardwalk
Atlantic City, New Jersey 08401
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (609) 340-2000
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
At October 31, 1996, all 100 outstanding shares of the registrant's common
stock were held by Bally's Casino Holdings, Inc., an indirect wholly owned
subsidiary of Bally Entertainment Corporation.
The registrant meets the conditions set forth in General Instruction H (1) (a)
and (b) of Form 10-Q and is therefore filing this form with the reduced
disclosure format.
<PAGE>
BALLY'S PARK PLACE, INC.
(An Indirect Wholly Owned Subsidiary of Bally Entertainment Corporation)
INDEX
Page
Number
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Condensed Consolidated Balance Sheet (Unaudited)
September 30, 1996 and December 31, 1995. . . . . . . . . . . 1
Consolidated Statement of Income (Unaudited)
Nine Months Ended September 30, 1996 and 1995 . . . . . . . . 2
Consolidated Statement of Income (Unaudited)
Three Months Ended September 30, 1996 and 1995. . . . . . . . 3
Consolidated Statement of Cash Flows (Unaudited)
Nine Months Ended September 30, 1996 and 1995 . . . . . . . . 4
Notes to Condensed Consolidated Financial
Statements (Unaudited). . . . . . . . . . . . . . . . . . . . 6
Item 2. Management's Discussion and Analysis of Results of
Operations . . . . . . . . . . . . . . . . . . . . . . . . 9
PART II. OTHER INFORMATION:
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . 11
SIGNATURE PAGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
<PAGE>
<TABLE>
BALLY'S PARK PLACE, INC.
(An Indirect Wholly Owned Subsidiary of Bally Entertainment Corporation)
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
<CAPTION>
September 30, December 31,
1996 1995
------------ -----------
ASSETS
<S> <C> <C>
Current assets:
Cash and equivalents. . . . . . . . . . . . $ 49,012 $ 31,508
Receivables, less allowances
of $1,475 and $1,490. . . . . . . . . . 9,758 6,407
Income taxes receivable . . . . . . . . . . 1,100 ---
Inventories . . . . . . . . . . . . . . . . 2,266 2,129
Prepaid expenses. . . . . . . . . . . . . . 7,134 1,367
Deferred income taxes . . . . . . . . . . . 9,239 8,655
-------- --------
Total current assets . . . . . . . . . . . 78,509 50,066
Property and equipment, less accumulated
depreciation of $355,173 and $335,787 . . . 459,827 466,887
Deferred finance costs, less accumulated
amortization of $3,795 and $3,021 . . . . . 11,238 11,877
Casino Reinvestment Development Authority
investment obligations. . . . . . . . . . . 16,023 13,108
Other assets. . . . . . . . . . . . . . . . . 10,097 7,836
-------- --------
$575,694 $549,774
======== ========
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Accounts payable. . . . . . . . . . . . . . $ 2,288 $ 3,028
Payable to affiliates . . . . . . . . . . . 3,265 534
Income taxes payable. . . . . . . . . . . . --- 5,681
Accrued liabilities . . . . . . . . . . . . 26,590 41,109
Current maturities of long-term debt. . . . 51 49
-------- --------
Total current liabilities. . . . . . . . . 32,194 50,401
Long-term debt, less current maturities . . . 427,483 427,554
Deferred income taxes . . . . . . . . . . . . 45,053 41,912
Other long-term liabilities . . . . . . . . . 11,926 9,671
Stockholder's equity:
Common stock. . . . . . . . . . . . . . . . 1 1
Additional paid-in capital. . . . . . . . . 20,235 20,235
Retained earnings . . . . . . . . . . . . . 38,802 ---
-------- --------
Total stockholder's equity . . . . . . . . 59,038 20,236
-------- --------
$575,694 $549,774
======== ========
<FN>
See accompanying notes.
</TABLE>
<TABLE>
BALLY'S PARK PLACE, INC.
(An Indirect Wholly Owned Subsidiary of Bally Entertainment Corporation)
CONSOLIDATED STATEMENT OF INCOME
(In thousands)
(Unaudited)
<CAPTION>
Nine Months Ended September 30,
------------------------------
1996 1995
-------- --------
<S> <C> <C>
Revenues:
Casino . . . . . . . . . . . . . . . . $271,225 $273,189
Rooms. . . . . . . . . . . . . . . . . 16,537 17,581
Food and beverage. . . . . . . . . . . 14,290 15,214
Other. . . . . . . . . . . . . . . . . 12,706 9,315
-------- --------
314,758 315,299
Costs and expenses:
Casino . . . . . . . . . . . . . . . . 107,371 108,388
Rooms. . . . . . . . . . . . . . . . . 7,154 7,512
Food and beverage. . . . . . . . . . . 12,249 13,761
Other operating expenses . . . . . . . 42,467 44,315
Selling, general and administrative. . 25,215 25,048
Depreciation and amortization. . . . . 21,300 21,344
Allocations from Bally Entertainment
Corporation. . . . . . . . . . . . . 3,374 3,705
-------- --------
219,130 224,073
-------- --------
Operating income . . . . . . . . . . . . 95,628 91,226
Interest expense . . . . . . . . . . . . 31,013 31,180
-------- --------
Income before income taxes . . . . . . . 64,615 60,046
Provision for income taxes . . . . . . . 25,813 25,760
-------- --------
Net income . . . . . . . . . . . . . . . $ 38,802 $ 34,286
======== ========
<FN>
See accompanying notes.
</TABLE>
<TABLE>
BALLY'S PARK PLACE, INC.
(An Indirect Wholly Owned Subsidiary of Bally Entertainment Corporation)
CONSOLIDATED STATEMENT OF INCOME
(In thousands)
(Unaudited)
<CAPTION>
Three Months Ended September 30,
-------------------------------
1996 1995
-------- --------
<S> <C> <C>
Revenues:
Casino . . . . . . . . . . . . . . . . $ 98,042 $102,482
Rooms. . . . . . . . . . . . . . . . . 6,823 7,201
Food and beverage. . . . . . . . . . . 5,140 5,685
Other. . . . . . . . . . . . . . . . . 6,658 3,628
-------- --------
116,663 118,996
Costs and expenses:
Casino . . . . . . . . . . . . . . . . 34,576 38,346
Rooms. . . . . . . . . . . . . . . . . 2,529 2,698
Food and beverage. . . . . . . . . . . 4,197 5,032
Other operating expenses . . . . . . . 15,888 15,605
Selling, general and administrative. . 8,104 9,923
Depreciation and amortization. . . . . 7,377 7,434
Allocations from Bally Entertainment
Corporation. . . . . . . . . . . . . 1,176 1,263
-------- --------
73,847 80,301
-------- --------
Operating income . . . . . . . . . . . . 42,816 38,695
Interest expense . . . . . . . . . . . . 10,319 10,390
-------- --------
Income before income taxes . . . . . . . 32,497 28,305
Provision for income taxes . . . . . . . 12,240 12,140
-------- --------
Net income . . . . . . . . . . . . . . . $ 20,257 $ 16,165
======== ========
<FN>
See accompanying notes.
</TABLE>
<TABLE>
BALLY'S PARK PLACE, INC.
(An Indirect Wholly Owned Subsidiary of Bally Entertainment Corporation)
CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
(Unaudited)
<CAPTION>
Nine Months Ended September 30,
------------------------------
1996 1995
-------- --------
<S> <C> <C>
Operating:
Net income . . . . . . . . . . . . . . . . $ 38,802 $ 34,286
Adjustments to reconcile to cash provided-
Depreciation and amortization. . . . . . 21,300 21,344
Other amortization included in interest
expense. . . . . . . . . . . . . . . . 1,202 1,199
Provision for doubtful receivables . . . 453 1,009
Deferred income taxes. . . . . . . . . . 2,557 2,177
Gain on settlement of supplemental
executive retirement plan. . . . . . . --- (1,800)
Change in operating assets and
liabilities. . . . . . . . . . . . . . (29,023) (12,191)
-------- --------
Cash provided by operating activities 35,291 46,024
Investing:
Purchases and construction
of property and equipment. . . . . . . . (14,062) (7,219)
Proceeds from disposal of property and
equipment. . . . . . . . . . . . . . . . 264 372
Casino Reinvestment Development Authority
investment obligations, net. . . . . . . (3,357) (1,389)
-------- --------
Cash used in investing activities. . (17,155) (8,236)
Financing:
Debt transactions -
Repayments of long-term debt . . . . . . (69) (72)
Costs to amend revolving credit agreement (563) ---
-------- --------
Cash used in debt transactions . . . (632) (72)
Equity transactions -
Dividends paid . . . . . . . . . . . . . --- (36,100)
-------- --------
Cash used in financing activities. . (632) (36,172)
-------- --------
Increase in cash and equivalents . . . . . . 17,504 1,616
Cash and equivalents, beginning of period. . 31,508 13,949
-------- --------
Cash and equivalents, end of period. . . . . $ 49,012 $ 15,565
======== ========
<FN>
(Continued)
</TABLE>
<TABLE>
BALLY'S PARK PLACE, INC.
(An Indirect Wholly Owned Subsidiary of Bally Entertainment Corporation)
CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
(Unaudited)
<CAPTION>
Nine Months Ended September 30,
------------------------------
1996 1995
-------- --------
SUPPLEMENTAL CASH FLOWS INFORMATION
<S> <C> <C>
Changes in operating assets and liabilities:
Increase in receivables. . . . . . . . . . $ (3,804) $ (867)
(Increase) decrease in income taxes
receivable . . . . . . . . . . . . . . . (1,100) 1,250
(Increase) decrease in inventories . . . . (137) 81
Increase in prepaid expenses
and other assets . . . . . . . . . . . . (8,028) (1,517)
Decrease in accounts payable, payable
to affiliates, accrued liabilities
and other long-term liabilities . . . . (10,273) (13,181)
Increase (decrease) in income taxes payable (5,681) 2,043
-------- --------
$(29,023) $(12,191)
======== ========
Cash payments for interest and income taxes:
Interest paid. . . . . . . . . . . . . . . $ 40,009 $ 40,076
Interest capitalized . . . . . . . . . . . (336) (43)
Income taxes paid (net of refunds) . . . . 30,037 20,290
Investing activities exclude the
following non-cash activity:
Donation of Casino Reinvestment
Development Authority investment
obligations, net . . . . . . . . . . . $ 442 $ 393
<FN>
See accompanying notes.
</TABLE>
Basis of presentation
The accompanying condensed consolidated financial statements include the
accounts of Bally's Park Place, Inc., a Delaware corporation (the "Company"),
which is an indirect wholly owned subsidiary of Bally Entertainment
Corporation ("BEC"), and its subsidiaries. The Company owns and operates the
casino hotel resort in Atlantic City, New Jersey known as "Bally's Park Place
Casino-Resort". The Company operates in one industry segment and all
significant revenues arise from its casino and supporting hotel operations.
Unless otherwise specified in the text, references to the Company include the
Company and its subsidiaries. These condensed consolidated financial
statements should be read in conjunction with the consolidated financial
statements included in the Company's Annual Report on Form 10-K for the year
ended December 31, 1995.
All adjustments have been recorded which are, in the opinion of management,
necessary for a fair presentation of the condensed consolidated balance sheet
of the Company at September 30, 1996, its consolidated statements of income
for the three and nine months ended September 30, 1996 and 1995 and its
consolidated statement of cash flows for the nine months ended September 30,
1996 and 1995. All such adjustments were of a normal recurring nature.
The accompanying condensed consolidated financial statements have been
prepared in conformity with generally accepted accounting principles which
require the Company's management to make estimates and assumptions that affect
the amounts reported therein. Actual results could vary from such estimates.
In addition, certain reclassifications have been made to prior period
financial statements to conform with the 1996 presentation.
Acquisition of BEC by Hilton Hotels Corporation
In June 1996, BEC and Hilton Hotels Corporation ("Hilton") entered into an
agreement pursuant to which BEC will merge with and into Hilton (the
"Merger"). The Merger, which has been approved by the Board of Directors and
shareholders of BEC and Hilton, is subject to approval by gaming regulators
of several jurisdictions, and is expected to close before year-end 1996.
Seasonal factors
The Company's operations are subject to seasonal factors and, therefore, the
results of operations for the three and nine months ended September 30, 1996
and 1995 are not necessarily indicative of the results of operations for the
full year.
Allocations from BEC and transactions with related parties
BEC allocates costs to the Company consisting of the Company's allocable share
of BEC's corporate overhead including executive salaries and benefits, public
company reporting costs and other corporate headquarter's costs. While the
Company does not obtain a measurable direct benefit from these allocated
costs, management believes that the Company receives an indirect benefit from
BEC's oversight. BEC's method for allocating costs is designed to apportion
the majority of its operating costs to its subsidiaries and is generally based
upon many subjective factors including various measures of operational size
and extent of BEC's oversight requirements. Management of BEC believes that
the methods used to allocate these costs are reasonable. Because of BEC's
controlling relationship with the Company and the allocation of certain BEC
costs, the operating results of the Company could be significantly different
if the Company operated autonomously. In addition, certain of the Company's
insurance coverage is obtained by BEC pursuant to corporate-wide programs.
In these circumstances, BEC charges the Company its proportionate share of the
respective insurance premiums.
Certain executive officers of the Company function in a similar capacity for
certain other BEC subsidiaries and exercise decision-making and operational
authority over these entities. No allocation of cost is made from the Company
to these BEC subsidiaries for these executive officers as management deems the
direct allocable cost to be immaterial. In addition, certain administrative
and support operations of the Company and GNOC, CORP. (a wholly owned
subsidiary of BEC which owns and operates the casino hotel resort in Atlantic
City known as the "The Grand"), are consolidated, including limousine
services, legal services and purchasing. Costs of these operations are
allocated to or from the Company either directly or using various formulas
based on estimates of utilization of such services. On a net basis,
allocations to The Grand were $65 and $107 for the three months ended
September 30, 1996 and 1995, respectively, and $280 and $244 for the nine
months ended September 30, 1996 and 1995, respectively, which management
believes were reasonable. The Company also leases land to The Grand, and
rental income for each of the three and nine month periods ended September 30,
1996 and 1995 was $174 and $522, respectively.
Long-term debt
The indenture for the Company's 9 1/4% First Mortgage Notes due 2004 (the
"Notes") and the $65,000 revolving credit facility (the entire amount was
unused at September 30, 1996) impose restrictions on the Company's ability to
incur debt and issue preferred stock, make acquisitions and certain restricted
payments, create liens, sell assets or enter into transactions with
affiliates. The revolving credit facility is, in certain circumstances, more
restrictive than the indenture for the Notes. Also, the indenture for the
Notes and the revolving credit facility presently limit the payment of
dividends by the Company to 50% of aggregate consolidated net income (as
defined) earned since April 1, 1994. At September 30, 1996, $22,492 was
available to be paid as dividends.
In October 1996, Hilton announced an offer to purchase for cash any and all
of the Notes (the "Tender Offer") and a solicitation of consents to proposed
amendments to the indenture for the Notes (the "Consent Solicitation"). The
Tender Offer and Consent Solicitation are subject to consummation of the
Merger, receipt of tenders and consents for at least a majority of the
principal amount of the Notes and the receipt of any necessary gaming
regulatory approvals, as well as certain other conditions described in the
Offer to Purchase and Consent Solicitation.
Income taxes
Taxable income or loss of the Company is included in the consolidated federal
income tax return of BEC. Under agreements among the Company, BEC and
Bally's Casino Holdings, Inc., income taxes are allocated to the Company based
on amounts the Company would pay or receive if it filed a separate
consolidated federal income tax return, except that the Company receives
credit from BEC for the tax benefit of the Company's net operating losses and
tax credits, if any, that can be utilized in BEC's consolidated federal income
tax return, regardless of whether these losses or credits could be utilized
by the Company on a separate consolidated federal income tax return basis.
Payments to BEC for tax liabilities are due at such time and in such amounts
as payments are required to be made to the Internal Revenue Service. Payments
from BEC for tax benefits are due at the time BEC files the applicable
consolidated federal income tax return. Under the tax sharing agreement, the
Company had income taxes receivable from BEC of $1,100 at September 30, 1996
and income taxes payable to BEC of $514 at December 31, 1995, which are
classified as income taxes receivable/payable in the accompanying condensed
consolidated balance sheet.
Guarantees
At September 30, 1996, the Company was contingently liable for the guarantee
of payments up to approximately $25,200 in the event certain affiliates fail
to make required payments pursuant to various contractual obligations.<PAGE>
BALLY'S PARK PLACE, INC.
(An Indirect Wholly Owned Subsidiary of Bally Entertainment Corporation)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
Comparison of the Nine Months Ended September 30, 1996 and 1995
Revenues of the Company for the nine months ended September 30, 1996 were
$314.8 million compared to $315.3 million for the 1995 period, a decrease of
$.5 million. Casino revenues decreased $2.0 million (1%). Slot revenues
decreased $1.3 million (1%) due to a decline in the win percentage from 8.5%
in 1995 to 8.3% in 1996 offset, in part, by 2% increase in slot handle
(volume). On average, Bally's Park Place had 89 (4%) more slot machines for
the 1996 period than in 1995. Slot revenues approximated 70% of the Company's
casino revenues in 1996 and 1995. Table game revenues, excluding poker,
remained essentially unchanged as a 1% increase in the drop (amount wagered)
was offset by a reduction in the hold percentage from 16.4% in 1995 to 16.3%
in 1996. Other casino revenues decreased $.8 million (14%) primarily due to
reduced poker revenues. In addition, rooms revenue and food and beverage
revenue decreased $1.0 million (6%) and $.9 million (6%), respectively, due
to increased complimentaries in 1996, resulting in fewer paying customers.
Other revenues increased $3.4 million (36%) principally due to a gain on life
insurance proceeds from a policy on a former executive.
Atlantic City casino revenues (excluding poker, horse race simulcasting and
keno) for the nine months ended September 30, 1996 increased approximately 3%
from 1995 due to a 3% increase in both table game and slot revenues. Since
September 30, 1995, the number of slot machines in Atlantic City increased
approximately 10% and the number of table games, excluding poker tables,
increased approximately 6%. Slot revenues approximated 69% of total casino
revenues in Atlantic City for both 1996 and 1995. Management believes that
the expansion of several casino hotel facilities in Atlantic City, which
includes additional hotel rooms and gaming space, has caused and will continue
to cause intense promotional efforts to attract players as both the Company
and its competitors continue to seek to expand their share of gaming revenues
and maximize the utilization of their gaming space. Further, as a result of
the aggressive competition for slot patrons, the Atlantic City slot win
percentage continues to decline. Management believes that the slot win
percentage will continue to be subject to competitive pressure and may decline
further. In addition, proposals for several new casino hotel resorts were
recently announced for Atlantic City and, if and when such resorts are opened,
capacity and competition will further increase. However, management believes
Bally's Park Place Casino-Resort is well-positioned to compete for additional
casino revenues in the Atlantic City market through the attractive promotional
gaming programs and special events it offers and the appearance and comfort
of its gaming space and hotel accommodations. During the first quarter of
1995, the Company completed a slot machine upgrade, replacing the majority of
its slot machines with state-of-the-art machines with embedded bill acceptors,
and reconfigured its slot machine layout, adding slot stools and increasing
aisle space. In addition, the Company broke ground in April 1996 for
construction of a western-themed casino complex on approximately 4 acres of
Boardwalk property it owns adjacent to Bally's Park Place Casino-Resort. The
complex is presently planned to include 75,000 square feet of casino space and
cost approximately $110 million, with completion anticipated in mid-1997.
Operating income of the Company for the nine months ended September 30, 1996
was $95.6 million compared to $91.2 million for the 1995 period, an increase
BALLY'S PARK PLACE, INC.
(An Indirect Wholly Owned Subsidiary of Bally Entertainment Corporation)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
of $4.4 million (5%) as the aforementioned revenue decrease was more than
offset by a 2% decrease in operating expenses. Other operating expenses
declined $1.8 million (4%) primarily due to a real estate tax refund relating
to prior years. In addition, food and beverage expenses and rooms expense
decreased $1.5 million (11%) and $.4 million (5%), respectively, due primarily
to an increase in complimentaries, which costs are included in casino
expenses. Operating costs and expenses include allocations from BEC of its
overhead (including executive salaries and benefits, public company reporting
costs and other corporate headquarter's costs) of $3.4 million and $3.7
million for the nine months ended September 30, 1996 and 1995, respectively.
Management of BEC believes that the methods used to allocate these costs are
reasonable.
For the nine months ended September 30, 1996 and 1995, the effective rates of
the income tax provision varied from the U.S. statutory tax rate (35%) due
principally to state income taxes in both periods and adjustments of prior
years' taxes in the 1995 period.
<PAGE>
BALLY'S PARK PLACE, INC.
(An Indirect Wholly Owned Subsidiary of Bally Entertainment Corporation)
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits.
Exhibit 27 Financial Data Schedule. (Filed electronically only.)
(b) Reports on Form 8-K.
None.
<PAGE>
SIGNATURE PAGE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Bally's Park Place, Inc.
----------------------------
Registrant
/s/ Joseph A. D'Amato
----------------------------
Joseph A. D'Amato
Vice President of Finance
and Administration
(Principal Financial Officer)
Dated: November 14, 1996
12
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED BALANCE SHEET AT SEPTEMBER 30, 1996, AND THE
CONSOLIDATED STATEMENT OF INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 49,012
<SECURITIES> 0
<RECEIVABLES> 11,233
<ALLOWANCES> 1,475
<INVENTORY> 2,266
<CURRENT-ASSETS> 78,509
<PP&E> 815,000
<DEPRECIATION> 355,173
<TOTAL-ASSETS> 575,694
<CURRENT-LIABILITIES> 32,194
<BONDS> 427,483
0
0
<COMMON> 1
<OTHER-SE> 59,037
<TOTAL-LIABILITY-AND-EQUITY> 575,694
<SALES> 0
<TOTAL-REVENUES> 314,758
<CGS> 0
<TOTAL-COSTS> 168,788
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 453<F1>
<INTEREST-EXPENSE> 31,013
<INCOME-PRETAX> 64,615
<INCOME-TAX> 25,813
<INCOME-CONTINUING> 38,802
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 38,802
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>
THE PROVISION FOR DOUBTFUL RECEIVABLES IS INCLUDED IN CASINO AND ROOMS
OPERATING COSTS AND EXPENSES IN THE CONSOLIDATED STATEMENT OF INCOME FOR THE
NINE MONTHS ENDED SEPTEMBER 30, 1996.
</FN>
</TABLE>
