LADY LUCK REPRESENTATIVES UPDATE SCOTT CITY LEADERS

SCOTT CITY -- Scott City officials were assured Tuesday night that Lady Luck Gaming Corporation still intends to locate a gambling casino and entertainment complex in the Scott City area.

"There have been a lot of questions concerning our development here," said Michael A. Hlavsa," chief financial officer for the gaming company. "We feel the Scott City plan is a great project."

Speaking before the Scott City Council Tuesday, Hlavsa also dispelled a rumor that Lady Luck was selling out its Scott City project.

"This is not true," he said. "The Scott City project will be a company operation. It's not for sale."

Lady Luck applied to the Missouri Gaming Commission for a license to operate a casino at Scott City in mid-July.

"That's where it is now," said Hlavsa. "We've been told that the commission will not take on any more gambling investigations before November of 1996."

Lawrence P. Tombari, vice president of development for Lady Luck, and Robert Stillwell, public relations director, accompanied Hlavsa to Tuesday's council meeting.

"The commission is looking at more suburban areas for development at this time," said Tombari. "We're hopeful that they'll be looking at some rural projects in the future. We want to be ready to move when they do."

In answer to a question, Hlavsa said it isn't likely that the Missouri Gaming Commission would approve two projects for the immediate area at the same time. Boyd Gaming has not yet applied to the commission for a planned license in Cape Girardeau.

Hlavsa also addressed Lady Luck's financial condition.

"We had some financial problems a year ago," he said. "But we went to fewer projects. A year later, our plans have paid off."

Lady Luck Gaming Corporation reported large revenue gains in its latest quarterly report.

Net revenues of $37.7 million were reported for the three months ended June 30, a 73.7 percent increase over the $21.7 million for the same period a year ago.

Net income for the second quarter was $734,000, compared with a net loss of $10.6 million in the second quarter of 1994.

Consolidated revenues for the first six months of 1995 were $72.4 million, compared to $50.9 million for the first six months of 1994, up 42.2 percent. The company posted net income of $2.8 for the first half of 1995, compared to a $10.3 million loss for the same period of 1994.

Income applicable to common shareholders for the first half of 1995 was $2 million, or 7 cents a share, compared to a 44 center share loss during the same period a year ago.

Lady Luck Gaming Corporation develops, owns and operates casinos in Iowa, Mississippi and Colorado, and is in the pre-development and development stages on projects in Missouri and Canada.

In other Scott City Council action Tuesday, an ordinance concerning archery shooting in the city limits was tabled until the next meeting. The amendment will be discussed during a committee meeting at 6:30 p.m. Thursday.