Casino Gambling Stocks Down on Wall Street After NJ Shutdown
Shares of casinos with operations in Atlantic City declined Wednesday, as the casinos were forced to shut their doors because of New Jersey's budget impasse.
Shares of Trump Entertainment Resorts Inc. led the descent. They fell fell 78 cents, or 3.8 percent, to close at $19.50 Wednesday on the Nasdaq Stock Market.
Harrah's Entertainment Inc. slipped 74 cents, or 1 percent, to close at $69.76 on the New York Stock Exchange.
Boyd Gaming Corp. shares fell 54 cents, or 1.4 percent, to close at $39.35 on the NYSE.
Aztar Corp. shares slipped fell 12 cents, or 0.2 percent, to close at $51.84 on the Big Board. The company is set to be acquired by private-equity firm Columbia Sussex Corp.
The casinos lost a court challenge Monday to remain open despite a state government shutdown ordered by New Jersey Governor Jon S. Corzine on Saturday. Corzine ordered all nonessential state government operations to stop, including state monitors required to keep gambling halls open, after a July 1 deadline passed without a new state budget.
The buildings remain open, and their hotels and shops still serve guests. But the gaming operations are closed down.
The Wednesday closures were the first in the 28-year history of Atlantic City's legalized casino gambling trade, affecting 12 casinos. According to the New Jersey Casino Control Commission, the casinos took in $16.3 million a day on average last July and the amount could have been higher this year.
Harrah's Entertainment owns the Bally's, Caesars, Harrah's and Showboat casinos in Atlantic City. Aztar owns the Tropicana, while Trump Entertainment operates Trump Taj Mahal Casino Resort, Trump Plaza Hotel and Casino and Trump Marina Hotel Casino.
Bill Lerner, an analyst at Deutsche Bank, estimated that each day closed would cost Trump Entertainment one cent per share. Harrah's Entertainment earnings would be reduced by one cent for every two days closed. It would take four to five days of closure to cost Boyd Gaming, co-owner of Borgata, one cent per share.
July 6, 2006
Posted By Susan Torres
Staff Editor, CasinoGamblingWeb.com
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