This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Casino Deals Put on Hold

The deal included Harrah's East Chicago Casino in Indiana, reducing the combined company's casinos there to two, and Caesars' Atlantic City Hilton, reducing their casinos in that N.J. market to four. The sale also included the Bally's and Harrah's casinos in Tunica, Miss.

"Harrah's and Caesars might have satisfied its regulatory concerns in one fell swoop," said Morningstar's Ayer. "They sold four casinos in the three markets that are likely to receive the most regulatory scrutiny, and it looked like they got a good deal on that sale."

Still, observers wonder whether Harrah's still faces concentration issues in Atlantic City. Based on 2004 net gaming wins, Harrah's and Caesars combined accounted for about 41% of the Atlantic City market, excluding the Atlantic City Hilton. That was down from about 49% in 2003. The decline was mostly due to the entrance of the Borgata, a joint venture between MGM Mirage and Boyd Gaming (BYD - Get Report).

Although New Jersey regulators are responsible for that state alone, analysts said they may take a broad view of gaming competition in Atlantic City and note existing competitive threats in Connecticut and New York.

A spokesman for the New Jersey Casino Control Commission declined to comment on how the body might rule. Harrah's spokesman Gary Thompson said the company had received no indications it would have to sell more properties.

Analysts say developments in Illinois and Detroit might delay the MGM Mirage purchase of Mandalay.

In Detroit, MGM Mirage and Mandalay must sell one of their two properties. Although interest in the MGM Grand Detroit and Mandalay's Motor City Casino is said to be high, observers wonder whether the companies can complete a sale in time for the merger deadline.

Feldman said the companies have yet to decide which property they will sell. But he added they're confident they can conclude a deal that would appease regulators.
3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BYD $15.98 0.00%
CZR $6.03 0.00%
DIS $91.15 0.00%
MBG $27.15 0.00%
WYNN $69.14 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs