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Fitch Ratings: Casinos Threatened by Tax Increases18 June 2003NEW YORK – As reported by Reuters: “U.S. casinos face losing hundreds of millions of dollars from steep tax increases as cash-strapped states struggle to close budget gaps, Fitch Ratings said on Tuesday. “…Atlantic City and Illinois operators stand to be the hardest hit, the rating agency said, with tax increases also up for debate in Iowa, Missouri and Nevada. “No credit ratings are threatened by current tax proposals, but some companies could suffer `fairly significant credit deterioration’ because they lack diversity and depend on just one or two markets where steep taxes are being considered, Fitch said. “Illinois last month shocked investors and gaming operators when it raised the top tax rate to 70 percent from 50 percent for revenues of more than $250 million and increased admission taxes to $5 from $3 for larger gambling boats, Fitch said. “…Harrah's Entertainment Inc. HET.N faces the biggest potential hit to earnings, but because of its size and diversity, its ratings are unlikely to be affected, Fitch said…” |