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Sector Snap: Casino Operators
Monday May 7, 12:03 pm ET
Casino Stocks Fall As Explosion at the Luxor Highlights Terrorism Risk


NEW YORK (AP) -- Shares of casino operators fell Monday after an explosion in a parking garage at the Luxor in Las Vegas highlighted the terrorism risk they face.
Police said a man picked up a backpack from the roof of his car on the second floor of a parking garage at the Luxor at around 4 a.m. The backpack exploded, killing the man and wounding a second person, police said.

The Luxor is a 100,000 sq.-ft. casino and hotel on the Las Vegas Strip owned by MGM Mirage, a Las Vegas-based gaming company that also operates the Bellagio, Mirage, Monte Carlo and Circus Circus casinos, among others.

MGM's stock fell $1.31, or 2 percent, to $63.35 in morning trading.

Calyon Securities analyst Smedes Rose said investors are aware casinos could be potential targets of terrorist attacks, but it is very complicated to discount that type of risk into a stock price. Until authorities provide more information about the explosion, he said it is difficult to judge the nature of what happened or what it could mean for gaming companies.

Shares of other casino operators fell modestly. Las Vegas Sands Corp. fell $1.61 to $80.20. Isle of Capri Casinos Inc. fell 21 cents to $25.14 Ameristar Casinos Inc. fell 12 cents to $31.55. Harrah's Entertainment Inc. fell 15 cents to $85.13. Wynn Resorts Ltd. fell $1.20 to $101.32. Boyd Gaming Corp. fell 63 cents to $45.83.