ACQUISITIONS I Las Vegas casino operator Paragon Gaming has purchased Vancouver's financially troubled Edgewater Casino for $42 million, making it the first foreign-owned casino in the province.

Vancouver lawyer John Sandrelli -- acting for casino owners Gary Jackson and Len Libin -- confirmed the transaction, saying the sale closed late Thursday and ownership transferred on Friday. The sale required the approval of provincial regulators and the B.C. Lottery Corp., which happened earlier this week.

"It's business as usual at the casino," Sandrelli said. "The company now has a clean balance sheet and is better capitalized, and that's promising for the casino going forward."

The purchase price more than covers an estimated $30 million owed to Edgewater creditors, including more than $17 million owed to Vancouver Whitecaps owner Greg Kerfoot, who considered buying the casino earlier this year.

Jackson and Libin opened Edgewater Casino in the Plaza of Nations in February 2005, but the facility never generated the revenues that were expected and the owners filed for court protection from creditors in May.

Several reasons were cited for the casino's poor financial performance -- including parking limitations, the absence of a liquor licence for the gambling floor, and city bylaws that restrict sign advertising.

© The Vancouver Sun 2006