SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 6, 1998
ROYAL CASINO GROUP INC.
(Exact name of registrant as specified in its charter)
UTAH 0-10315 95-4091368
(State or other (Commission (I.R.S. Employer
jurisdiction of in- File Number) Identification #)
corporation)
152 Sherman St., Deadwood, SD 57732
(Address of principal executive offices) (Zip Code)
Registrants telephone number, including area code: (605)578-1299
Total number of sequentially numbered pages : 3
Exhibit index page number: none
ITEM 5. OTHER EVENTS
(i)
In order to curtail losses and preserve shareholder capital,
the Registrants wholly-owned subsidiary, Atlantic-Pacific Corp.,
has discontinued operations at Goldiggers Hotel & Gaming
Establishment located in Deadwood, South Dakota as of January
6, 1998.
The Company believes the downward trend in the Deadwood gaming
market which coincided with the Companys arrival into the
market, will continue and that revenues will continue to erode.
When the Company contemplated the acquisition of Goldiggers
the operation had annual revenues in excess of $2.3M yet
operated at a loss. The Company identified several areas where
it believed savings could be attained thereby generating a
profit. The Company acquired Goldiggers in June, 1996. Cost
containment measures implemented by the Company cut operating
expenses $885,000 in the most recently completed fiscal year.
However, significant losses existed due to the widely reported
severe climatic conditions that prevailed in the region
throughout last Winter and Spring resulting in an overall
downturn in Summer tourism. For the year Goldiggers generated
over $300,000 less in revenues. Continuing downward, Goldiggers
revenues for the first fiscal quarter decreased $194,000 year
over year yet the Company was able to improve direct operating
department costs $302,000 during the same period. Royal Casino
Group continued to provide cash injections to support the losses
and sustain Goldiggers operations. The Company has determined
that it has fully implemented its planned cost reductions and
savings programs and unfortunately believes the revenues will
not return to the 1995 or 1996 levels required for the property
to be profitable. The Company is the fourth publicly traded
gaming company to exit the Deadwood market.
As Goldiggers has been a drain on the Companys cash resources,
the closure of the property requires no further demand on the
parent Companys funds and therefore should produce positive long
term results for the Company as it pursues other gaming
opportunities. The Company continues to work on its planned
riverboat casino entertainment development in Southeast
Missouri. In addition, the Company continues to devote its
energies towards two additional gaming opportunities which are
in various stages of due diligence.
Royal Casino continues to own and operate the Deadwood Stage,
a 13-vehicle transportation system.
SIGNATURES
Pursuant to the requirements of the securities and exchange act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
Royal Casino Group Inc.
By:_ /s/ Jon F. Elliott_____
Jon F. Elliott, President/CEO
Date: January 9, 1998
