As reported by: St. Joseph News-Press
Two Missouri casinos and one in Iowa have been purchased by a family-owned gambling company based in Las Vegas, Nev., the companies involved announced Wednesday.

Herbst Gaming Inc. will buy the St. Jo Frontier Casino in St. Joseph, the Mark Twain Casino in LaGrange and Lakeside Casino & Resort in Osceola, Iowa, for $287.5 million.

The sale must be approved in Iowa and Missouri and is not expected to close for six to nine months.

All three casinos have been owned since 1994 by the W. M. Grace Cos. Inc. of St. Joseph. The company also owns The Woodlands pari-mutuel dog and horse racing complex in Kansas City, Kan., and manages the White Cloud casino in northeast Kansas. The deal does not affect those properties.

The Grace family decided to sell the St. Jo Frontier Casino, the Mark Twain Casino and Lakeside Casino after William M. Grace, the majority owner, died in April, said Grace's son, Howard Grace. About half a dozen companies were considered, but Herbst Gaming was chosen because of similarities between the two family-owned businesses, he said.

"It is bittersweet," Grace said. "It was a tough decision."

Herbst Gaming was established in 1987 as an offshoot of the Terrible Herbst Oil Co., which was founded by Ed Herbst in 1938. Herbst used "terrible" as part of his effort to be known as the "best bad guy in the West."

The family owns more than 80 gas stations and convenience stores and 580 slot locations in Nevada. Herbst Gaming focuses on a local market rather than a resort or tourist gambler.

"For us, this acquisition is very substantial," said Sean Higgins, general counsel for Herbst Gaming. "We are very excited. The size of the operation really fit."

Howard Grace said his father knew the Herbst family and would have approved of the decision.

"We had more money on the table (from other bidders)," Grace said. "They have a great reputation in the industry. They'll be part of the community."