Stock falls on tax-hike worries

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Friday, May 30, 2003 | 9:54 a.m.

WYOMISSING, Pa. -- The stock of casino operator Penn National Gaming Inc. fell $2.58, or 14 percent, to $15.97 and traded as low as $14.75 this morning on fears of higher taxes in Illinois.

Penn said a gaming-tax increase proposal by Gov. Rod Blagojevich would raise its taxes by $29 million, in addition to a $19 million annual increase last year.

In a letter to Blagojevich, Penn National said the proposed tax hike would lead to major cuts at its Aurora casino. "Any tax increase above the already confiscatory levels that we face today is a disaster for our company," the letter said.