"I have been asked, 'how are you going to build in AtlanticCity?'" Lee told analysts in this week's earnings conference call."The answer to that question is that if the credit markets don'tstart to improve, we can't build. We're not planning to go brokebuilding in Atlantic City."

The proposed casino/resort, as yet unnamed, was to be thecompany's entry into this market. Besides Nevada, Pinnacle alsooperates properties in Indiana, Louisiana, Missouri and, outside ofthe US, in the Caribbean and Argentina. To clear the way for thatentry, Pinnacle in late 2006 bought the Sands Casino Hotel and acontiguous 18 acres from affiliates of Carl Icahn for $250 million asGlobeSt.com reported. The 600-room Sands was subsequently closed,and in October, was imploded. The boardwalk site currently sitscleared and vacant.

The project not moving forward is a worst-case scenario, and Leedid tell analysts that he expects the credit markets to improveenough for Pinnacle to build. "I feel confident enough that themarkets will get better before our architects are finisheddesigning the building," he said. "We're still in the process ofdefining what can go into the property.