$2 billion, beach-themedcasino/hotel on the site of the demolished Sands Hotel. Now,the company has indeed put the project on the back burner, and mayeven sell the cleared property for the right price.

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"The company's plans…are on indefinite hold due to credit marketconditions and an evolving competitive environment," reads astatement issued by the company. "including approval of a stateconstitutional amendment…permitting 15,000 slot machines in nearbyMaryland, the three additional casinos…in eastern Pennsylvania, andAtlantic City's recent request for proposalsfor one or more casinos to be built on [former municipal airport]Bader Field."

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"We recognize that this is not an environment to go and 'dreambig'," Pinnacle chairman/CEO Daniel Lee told analysts during thecompany's Q3 earnings conference call. "We're going to sit inAtlantic City, and we could be sitting for a very long period oftime. If we have to put it off for years and years to make surethat what we're doing is bulletproof, then so be it."

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Lee also admitted his company would entertain offers to sell the18-acre boardwalk property, which it acquired two years ago, andsubsequently demolished the Sands in late 2007. "Obviously, ifsomeone made us a decent offer for the property, we would have toconsider it," Lee told analysts.

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And the earnings news wasn't good for Pinnacle in Q3. Thecompany reported a quarterly loss of $11.8 million, compared with anet income of $5 million a year ago. Revenues rose by just morethan 10% to $263 million, however.

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The Pinnacle pullback is the latest piece of bad news for thisstruggling gaming mecca, which saw casino revenues fall by morethan 6% for the first nine months of 2008, and a 15% decline inSeptember alone. Less than two weeks ago, MGM Mirage said it wasputting its proposed $5 billion MGM GrandAtlantic City on hold for the time being. And it was alsorevealed that the sale price of the Trump Marina Hotel Casino,being acquired by Coastal Marina LLC from Trump Entertainment, hadbeen slashedfrom $316 million to $270 million.

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