By Ken Alltucker
Enquirer staff writer

Argosy Gaming Co. said Thursday that it would spend up to $150 million on new gambling space, hotel rooms and parking at its Lawrenceburg riverfront casino.

The company still hasn't nailed down the details of the expansion, but Greater Cincinnati's highest-grossing casino expects to unveil a plan by the end of September. The casino will be aided by a city of Lawrenceburg tax credit that could return $50 million to the casino over 10 years.

The tax credit deal already has provided a windfall for the casino. Argosy said the Lawrenceburg tax credit, approved in June and effective Jan. 1, contributed a five cents per-share bump to the company's earnings so far this year.

Argosy on Thursday reported second-quarter net income of $18.6 million, or 63 cents per share, compared to last year's $6.9 million, or 24 cents per share.

Argosy's seeking the expansion for its biggest casino in part because it must turn away customers on busy Friday and Saturday nights. The casino now operates a 300-room hotel and 2,200 slot machines, but the packed riverboat can't accommodate all willing gamblers during peak times.

An expansion proposal to Lawrenceburg City Council on June 9 included a new "slip barge," that would sit in the water between the casino and the boarding area. This barge would hold restaurants, the teller area and other non-gambling functions that could be moved off the casino barge - making room for more slot machines and gambling tables.

Chief executive Richard Glasier said Thursday that the expansion will likely include a new hotel tower.

The company is still studying how much land is available to add the hotel and extra parking that would be needed. Any expansion would take up to two years.

"It's a question of where can we put it and what size will it be," said Larry Kinser, Argosy's Lawrenceburg general manager.

Another motivating factor for Argosy could be Belterra Casino Resort's recent expansion.

The rival casino, located near Vevay in Switzerland County, added a 300-room hotel tower as part of a $35 million expansion that also included a new conference center and a Jeff Ruby's restaurant.

Glasier acknowledged that Argosy has felt the impact of Belterra's expansion, but not enough to rev up the casino's marketing strategy.

"Our operating philosophy is not to chase business with incremental marketing dollars," Glasier said in a conference call to stock analysts and investors.

Argosy remains the dominant casino of the three riverboats closest to Cincinnati.

Argosy gathered $219.3 million in win (actual gamblers' losses) through the first six months of the year compared to a combined $145.1 million win collected by the two other Cincinnati-area casinos, Grand Victoria in Rising Sun and Belterra.

Of the six riverboats operated by Alton, Ill-based Argosy, the Lawrenceburg site is the highest-grossing casino - accounting for more than 40 percent of the company's revenue.