Feb 19 The likely legalization of online
gambling in New Jersey would be a boon to Atlantic City casinos,
which have lost business as customers have chosen to gamble
closer to home in neighboring Pennsylvania and New York, Fitch
Ratings said on Tuesday.
New Jersey Governor Chris Christie vetoed legislation
earlier this month that would have allowed online gaming in the
state. But he indicated he would sign a bill with some changes.
Online gaming could help Borgata Hotel Casino & Spa's
'B-minus' issuer default rating with a stable outlook, as well
as Caesars Entertainment Corp's 'CCC' rating with a
negative outlook, Fitch said.
Marina District Finance Co is the issuing entity for the
Borgata, which is owned by Boyd Gaming Corp.
Caesars, which has four Atlantic City properties, and the
Borgata together account for more than 60 percent of Atlantic
City's gaming revenue.
"Fitch expects Atlantic City casinos to experience some
cannibalization from online gaming but on a net basis
incremental gaming revenues accruing to Atlantic City casinos
should still be positive," Fitch analysts said in a statement.