Huge $20 million per day losses for Atlantic City casinos

by Darren

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The government work stoppages in New Jersey are already taking a big toll, costing the casino companies who operate their $20 milllion a day! You can see how quickly a lengthy stoppage could turn into serious trouble for them.

This is hurting the city and the companies:

All 12 of the city’s casinos closed on Wednesday morning after a budget impasse led Gov. Jon Corzine to shut down non-essential services July 1, furloughing most state employees, a Casino Control Commission spokesman said.

The state is costing themselves big money with this move, because Atlantic City casinos pay a ton to them in taxes. If this situation continues, you could almost be assured that this will have a serious impact on the operating numbers of any of the companies that have an operation there.

Here’s the companies affected that trade:

Major casino operators affected include Borgata Hotel Casino & Spa, a joint venture between Boyd Gaming Corp. (BYD.N: Quote, Profile, Research) and MGM Mirage (MGM.N: Quote, Profile, Research), and Harrah’s Entertainment Inc. (HET.N: Quote, Profile, Research), the world’s largest gaming operator, which runs four casinos there. Other casino operators in Atlantic City include Aztar Corp. (AZR.N: Quote, Profile, Research) and Colony Capital LLC.

All of these companies should be considered for research, because the impact on their earnings is likely to be large and adverse. This could lower share prices from where they currently are.
Trump already said that a protracted stoppage could result in 2,000 people being laid off. Good work, New Jersey, that’s quite a way to cost people billions and help everyone lose faith.

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