Sector Snap: States May Use Gaming To Plug Budgets

NEW YORK (AP) — Some states looking for ways to plug their budget holes during the recession may turn to casinos — which could benefit casino equipment suppliers, a Goldman Sachs analyst said Tuesday.

With the majority of states facing a 2009 budget deficit of $2.2 billion, on average, Steven Kent suspects many will consider expanding casino operations as a way to generate more money.

Such a move would help casino equipment makers, since any new or expanded venue would need machines for the property. But casino operators may see their business weaken, Kent explained, since expanded operations could infringe on existing properties. ...