Palms Casino Las Vegas Shows Substantial Value Decrease

LAS VEGAS, Nevada -- As reported by The Sacramento Bee: "The Maloofs' ultra-trendy Las Vegas casino has suffered a substantial drop in value in the past year, a minority investment partner
Palms Casino Resort in Las Vegas  says, suggesting more problems for the family that owns the Kings.

"The partner, Station Casinos Inc. of Las Vegas, said its stake in the Maloofs' Palms Casino Resort has dropped 87 percent since January 2008. Based on Station's declaration, filed with the Securities and Exchange Commission, the value of the Palms fell to an estimated $50 million March 31, from $386 million 15 months earlier.

"Two outside experts said they believe the Palms remains financially strong. George Maloof Jr., who runs the resort, called Station's estimate "ridiculous." He said the resort is doing well in spite of a weak economy that has battered the casino industry.

"...A source familiar with the Palms' finances said its cash flow – a measure of profit before certain expenses are deducted – fell 19 percent last year, to $51 million. The source declined to be named. Maloof wouldn't discuss the Palms' finances, other than to say it is profitable..."