Casino Stocks Take Hit Following Closures
By Andrew B
A dozen Atlantic City casinos have closed, resulting in a broad decline in the shares of companies with big stakes in the USA's second-biggest gambling market.

The casinos closed Wednesday morning as a result of New Jersey Gov. Jon Corzine's recent order stopping non-essential government functions as part of a budget impasse with the state Legislature.

The state regulates gambling, so with no regulators, the casinos have shut down.

The shutdown is estimated to be costing the industry $17 million a day in lost revenue, and the effect on trading has seen stocks hit in varying ways.

•Trump Entertainment (TRMP). This casino operator, which gets all its revenue from its three Atlantic City hotel casinos, suffered most as its shares sank 78 cents, or 4%, to $19.50.

•Harrah's Entertainment (HET). The biggest operator in Atlantic City, with four casinos there, saw its shares fall 74 cents, or 1.1%, to $69.76.

Harrah's shares were protected somewhat because it gets about 65% of its cash flow from properties outside Atlantic City.

•MGM Mirage (MGM) and Boyd Gaming (BYD). These partners in Atlantic City's ritziest property, the Borgata, saw share prices fall: 58 cents to $40.25 for MGM Mirage; 54 cents to $39.35 for Boyd.

MGM Mirage and Boyd, like Harrah's, have limited exposure to Atlantic City, easing the hit.

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