Gaming briefs for August 13, 2004

Friday, Aug. 13, 2004 | 10:42 a.m.

Indian casino measures failing

SACRAMENTO -- California ballot measures to expand gambling don't have enough support to pass, three months before voters in the most-populous U.S. state decide on two initiatives that Gov. Arnold Schwarzenegger opposes, a poll released today shows.

An initiative that would break California Indian tribes' monopoly on slot machines in the state, should the tribes not surrender 25 percent of their winnings, is behind as 48 percent are opposed and 30 percent in favor, according to the Field Research Corp. poll. A tribal sponsored measure, which would allow unlimited gambling on Indian lands, is lagging by 40 percent to 33 percent.

Agencies rate bonds

Standard & Poor's Ratings Services assigned a BB+ rating to MGM MIRAGE's proposed bond issue of $550 million in notes due Sept. 1, 2012.

The bond rating agency also placed the rating on CreditWatch with negative implications. Proceeds from the offering will be used to pay bank debt.

All other ratings on MGM MIRAGE, including its BB+ corporate credit rating, remain on CreditWatch with negative implications, S&P said. The agency put the ratings on watch June 7 following MGM MIRAGE's announcement that it intended to purchase Mandalay Resort Group.

S&P said it will review several factors in determining whether to raise or lower the company's credit ratings. Those factors include the method of financing the deal, the combined company's capital structure, potential assets that might be sold as a result of the merger and management's near- and longer-term growth objectives, integration plans and financial policies, the agency said.

Separately, Fitch Ratings assigned a BB+ rating to the notes. Fitch placed MGM MIRAGE's long-term ratings on Rating Watch Negative in June following the merger announcement. Fitch said it expects the Rating Watch status to be resolved when the final terms of financing and the pace of deleveraging following the acquisition are announced.

LV firm's profit increases

Casino chip maker Paul-Son Gaming Corp. today reported a 62 percent increase in second quarter profit to $1.9 million, citing accelerated shipments of casino equipment.

Those sales include shipments to the first two U.S.-owned casinos in Macau, China, the company said.

On a per share basis, earnings were 25 cents in the second quarter compared with earnings of 16 cents in the same quarter of last year.

Revenue rose 43 percent to $14.8 million.

The Las Vegas company makes a variety of equipment including table layouts, playing cards, dice, casino furniture and table accessories.