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Rumours of Nevada Tax Causes Casino Shares to Fall23 August 2002LOS ANGELES, California –As reported by Reuters: "Concerns about the potential for a gaming tax hike in the important Nevada casino market weighed on major casino stocks on Thursday, which closed mostly down or unchanged despite a broader market advance. "Shares of MGM Mirage (NYSE:MGG) closed down 73 cents or 2 percent at $36.27, while Mandalay Resort Group (NYSE:MBG) lost 24 cents or nearly 1 percent to close at $29.78. Both companies have heavy concentrations of casinos in Las Vegas. "Boyd Gaming Corp. (NYSE:BYD), also heavily represented in Las Vegas, lost 7 cents to close at $17.05, while Station Casinos Inc. (NYSE:STN), which caters to local Las Vegas gamblers, was unchanged at $12.99. "…Analysts said the sell-off was prompted by news of an effort -- apparently with little support -- at raising the Nevada gambling tax rate. "According to a report in the Las Vegas Review-Journal, Nevada Democratic gubernatorial candidate Joe Neal has urged a governor's task force to raise the state's gaming tax to 10.25 percent from the current 6.25 percent. "…Similar tax hikes were proposed and later passed into law earlier this year in Illinois and Indiana, taking a toll on companies with casinos in those states. "The wave of legislative initiatives comes as many states look for new revenue sources to bridge budget shortfalls resulting from the economic slowdown." |