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Katrina washes away Casino Profits
August 30, 2005
The world's largest gambling company Harrah's Entertainment Inc has closed down three of its casinos in New Orleans and Mississippi following Hurricane Katrina. Other Las Vegas based competitors also had to shut down some of their casinos in the hurricane affected areas.
Gary Loveman, Harrah's chairman commented that only modest damages have been reported of the casino and it will pay its employees even when the casino shutters remain closed. MGM Mirage's Beau Rivage hotel- casino suffered floods in the parking area but the casino remains intact. The hurricane could turn out to be costly for the casinos as Harrah's could lose $1.8million to $2.5 million a day. Analysts put $700,000 to $1.1million loss for MGM Mirage and Boyd can lose $200,000 to $450,000 a day. The severity of the storm suggests that the loss will continue for a two or three week period
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