Station Casinos saw their stock take a slight bruising this week amid it alleging harassment from the Reno, Nev. Culinary Union. Station Casinos– who are not unionized – reacting with the strong accusation following the Union’s intent to get an initiative placed on the upcoming Nov. 7 ballot allowing the public to vote on new casinos built outside the traditional Reno areas. If approved, casinos built outside this area will be required to pay help the city pay off various debts, including the Reno Redevelopment Agency and $310 million railroad trench project. Next month, Station Casinos expects to submit plans for a $500 million casino resort in south Reno. Shares of the company fell 82-cents to $68.15 earlier in the week, before rebounding slightly to close at $68.80 Friday.

Tuesday saw Harrah’s Entertainment Inc. announce they had reached an agreement with NCR Corp. (a maker of ATMs and other financial electronics) to merge customer data from the Caesars Connection Card into Harrah’s Total Reward program. When completed, it will contain 40 million customers. Both NCR and Harrah’s shares slipped following the news, with Harrah’s rebounding back to form to close at $72.04 Friday. The company also saw its stock downgraded by Deutsche Securities Friday to “hold” from “buy”.

Isle of Capri’s initial stock bump proved temporary as the week concluded, following Thursday’s announcement of receiving site and development approval from the Mississippi Gaming Commission on a $250-300 million planned casino resort in west Harrison County. The stock rose 36-cents to $25.45 in Thursday afternoon trading, before closing Friday at $24.39, a drop of 79-cents.

Progressive Gaming, makers of casino software and games, similarly announced it will file its delayed first-quarter results first-quarter results this coming week – as well as appointing a new CFO. Heather A. Rollo takes over for the resigning Michael A. Sicuro, who will remain as an advisor in transitional matters. Their stock closed up 11-cents Friday at $8.54.
 
Shares of Empire Resorts Inc. climbed as the week closed-out following the announcement of its partner, the St Regis Mohawk Tribe reaching agreement with government of Sullivan County, N.Y. to purchase the Monticellp Raceway Casino. The company’s stock rose 52-cents (or 8.8 percent) to $6.44 in the afternoon before closing at $6.40. Shares have been trading between $3.71-$8.29 during the past year. A $500 million casino and resort is on the development docket adjacent to the raceway. N.Y. Empire Resorts will build and operate the casino. The tribe will make $15 million annual payments to the county to mitigate any potential impact of the venture.

Lastly, Ameristar Casinos Inc. were upgraded by Bear Stearns Friday to “Peer Performâ€? from “Underperformâ€? due to its valuation and recent performance of their stock price. Analyst Joseph Greff said the company’s first-quarter results announcement saw their shares trade at a more reasonable enterprise multiple valuation. The stock has been trading in the range of $18.12-$30.31 over the past 52-weeks, with it closing down 36-cents Friday at $18.79. Ameristar’s Kansas City, St. Louis and Council Bluffs markets have all experienced flat or declining property level gross gaming revenue, through May, on a quarter-to-date basis.

posted by Rex Harris