Aztar Corporation (operators of the Tropicana Casinos in Atlantic City and Las Vegas) announced this week that revenues remained at the same level they performed at in 2005 with a $66 million loss. The Phoenix-based company is currently being acquired by Columbia Entertainment and attributed the second-quarter loss to fees related to terminating its merger agreement with another company. Aztar opted to merge with Columbia over Pinnacle Entertainment – and ended up paying $78 million in fees in the process. Its revenue for second-quarter 2006 was $222 million versus $221 million in the same period in 2005. Their stock traded down down 24-cents to $51.62.

Meanwhile, Dover Downs Gaming and Entertainment has announced it will reveal its second-quarter earnings this coming Thursday, coming off last week’s news that its slot proceeds from the company’s race track were down during the time frame. That news sent the stock into a tumble that continued through this week (trading at $15.70 on the NYSE) given that the majority of revenues are derived from such activity. The company is expected to announced it has missed its initial revenue projections.

In other news, Penn National Gaming rose this week following a CIBC upgrade announcement, rising to $37.77 per share following it being categorized as being one of the best opportunities in the small-to-mid cap casino group. They fell back as the week progressed, however, ended at $35.45 on Friday’s close. Meanwhile, CIBC also upgraded MGM Mirage – and shares rose accordingly to $38.25 before dropping back to $36.27 at Friday close. The company also announced they will reveal second-quarter earnings August 3. The CIBC recommendations also extended to both Boyd Gaming Corporation and Harrah’s Entertainment Inc., with Boyd moving higher at $38.04, and Harrah’s peaking at $66.34 before falling back to $63.50 on Friday. Thursday will also see Harrah’s Entertainment release their second quarter earnings, with the company making more news this week in announcing its quarterly dividend was up 10.3 percent to 40 cents per share.

In related North American industry news, the BetonSports indictments far-reaching affects extended throughout the Canadian stock market last week, with several investors showing their fear that the U.S. government crackdown on internet gambling may spread North of the border, given credence in that BetonSports is a British-listed company, based in Costa Rica and run by a British citizen.

Software firm Cryptologic fell more than $3.50 per share or 15 percent this week, closing the week at $21.69 on the Toronto Stock Exchange, with Fun Technologies – an online gambling firm – down slightly to $5.64 in the same time frame. Meanwhile, the parent company of Action Poker Gaming Inc. (Las Vegas From Home.com) were off as well, falling to 16-cents, with Vancouver-based Chartwell Technology down as well to $2.31.

posted by Rex Harris