Jackpot Enterprises to Buy CRC Holdings

Jackpot Enterprises Inc., an operator of slot machines and casinos, signed a letter of intent to buy closely held casino company CRC Holdings Inc. for about $71.3 million in stock to expand outside of Nevada. Jackpot said it expects to buy CRC, which operates as Carnival Resorts & Casinos, for about 6.49 million of its shares. Shares of Las Vegas-based Jackpot rose 13 cents to close at $11 on the NYSE. Miami-based CRC owns a 60% interest in the Casino Rouge riverboat casino in Baton Rouge, La., operates the Casino Rama north of Toronto and is developing the Grand Bay Resort on Lake Las Vegas in Henderson, Nev. Jackpot operates 4,300 slot machines at about 40 locations, including supermarkets, drugstores and bars in Nevada. It also operates two small casinos, the Owl Club in Battle Mountain, Nev., and the Pony Express Casino in Jackpot, Nev. Jackpot said its cash flow--or earnings before interest, taxes, depreciation and amortization--will double with the purchase.