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Posted At : December 4, 2008 01:53 PM | Posted By : D McKee
Related Categories:
G2E,Economy,Herbst Gaming,Mississippi,Atlantic City,Isle of Capri
American Gaming Association President Frank Fahrenkopf may have made light of it at G2E. But the days of joking about a federal bailout are officially over. New Jersey Gov. Jon Corzine (D), during an Atlantic City visit, made some vague rumblings about the necessity for aid which "stops this slide ... I mean, we don't need to wait until there's a 30% decline in revenues and there's another series of layoffs in Atlantic City or in the financial services industry that undermine the overall health and well-being of the American people."
So it begins; not with the ringing of a bell but the rattling of a tin cup. But remember, when federal business-relief money was being directed at the Gulf Coast in the wake of Hurricane Katrina, bluenoses in Congress made sure to 'redline' casinos out of the list of intended beneficiaries.
Isle slows down. Expansion of the Biloxi Isle of Capri Casino is on the backburner again, in another manifestation of the company's newfound prudence. Unfortunately, that wasn't enough to save Isle from having its credit rating cut.
Herbst Watch, Day One. Yesterday was D-Day for overextended Herbst Gaming. Still no word on what went down.
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