IN BRIEF
ATLANTIC CITY
Atlantic City casinos’ revenue dips in August
The dog days of August took a bite out of Atlantic City casinos’ bottom line this year, dropping revenue by nearly 6 percent from a year ago.
Industry experts blame the decline on several factors, including newly opened slots parlors in Pennsylvania and Delaware and a partial smoking ban in the 11 Atlantic City casinos.
The casinos won $465.2 million in August, down 5.9 percent from August 2006. They took in $323.5 million from slot machines, an 11 percent decline, and $141.7 million at table games, an increase of 8.2 percent.
Trump Marina Hotel Casino posted the biggest monthly decline at 13.9 percent, followed by the Tropicana (down 13 percent),
On the plus side, Caesars saw revenue increase by 10.8 percent, and Harrah’s saw a 7.1 percent increase. Both are owned by the same company, Harrah’s Entertainment.
TALLAHASSEE, Fla.
Governor, tribe near deal on casino games
Republican Gov. Charlie Crist and the Seminole Indians are close to a deal allowing the tribe’s casinos to offer Las Vegas-style slot machines, possibly even card games, with the potential to generate more than $100 million a year for the state.
Tribe lawyer Barry Richard said he believes a final deal could come as early as next week.
While Broward County in southeast Florida already has Vegas-style slots, the compact could generate state revenue, for example, if Tampa Bay-area tracks are not allowed slot machines — Las Vegas-style or video.
Crist has already said he will not allow the Seminoles to run games like roulette or craps, but he hasn’t ruled out card games like blackjack or baccarat, Richard said.
WASHINGTON
States seek longer oversight of Microsoft
A group of states led by California asked a federal judge Tuesday to extend court oversight of Microsoft Corp.’s business practices for five more years.
The request comes as the antitrust settlement reached in 2002 between Microsoft, the federal government and 17 states is scheduled to expire Nov. 12. Microsoft has been under the supervision of the U.S. District Court for the District of Columbia for the past five years and has had to report regularly on its compliance with the settlement.
But Stephen Houck, an attorney representing California, said an extension was necessary to ensure that Microsoft’s new Vista operating system continues to comply with the consent decree.
California was joined in its request by Connecticut, Iowa, Kansas, Minnesota, Massachusetts and the District of Columbia.
RENO
Nevada gasoline prices slip for fourth month
Nevada gasoline prices are a nickel cheaper than they were a month ago, the fourth consecutive month the average price for a gallon of regular unleaded has slid statewide, AAA Nevada said Tuesday.
As a result of the decline, Nevada’s gas prices are cheaper than the national average.
Prices at the pumps nationally increased 4 cents from a month ago to an average of $2.81 for a gallon of regular unleaded. Nevada’s average now stands at $2.79.
Elko has seen the biggest drop in gasoline prices statewide. The average of $2.90 is a full 12 cents cheaper than it was in mid-August.
Average prices in Las Vegas were $2.71, down 5 cents from a month ago, AAA said; prices were $2.70 in North Las Vegas, down 6 cents; and $2.72 in Henderson, down 6 cents.
NEW YORK
No bonuses for flier’s bankruptcy lawyers
Bankruptcy lawyers for Northwest Airlines Corp. were denied $4.2 million in end-of-case bonuses Tuesday, with a judge saying their average rates of about $500 an hour had already provided adequate compensation.
U.S. Bankruptcy Judge Allan Gropper rejected a $3.5 million bonus for Northwest Airlines’ lead law firm, Cadwalader, Wickersham & Taft LLP, which ushered the airline out of bankruptcy in May. A law firm representing creditors, Otterbourg, Steindler, Houston & Rosen, was denied a $700,000 bonus.
Gropper said that for the attorneys to deserve a so-called fee enhancement, their work should have a remarkable result that couldn’t be expected from lawyers being paid their regular fees.
A flight attendants union as well as the U.S. Trustee and a creditor-turned-shareholder objected to the bonuses, arguing they were unjustified.
Gold prices climb as dollar trades near low
Gold rose to the highest since May 2006 and silver climbed as the dollar traded near a record low against the euro, boosting the appeal of precious metals as alternative investments.
Gold is priced in dollars and five of the past six bear markets for the U.S. currency have pushed the price of the metal higher. Investment demand in the StreetTracks Gold Trust, an exchange-traded fund backed by bullion, is at a record 559 metric tons.
Gold futures for December delivery rose $8.90, or 1.2 percent, to $721.10 an ounce on the Comex division of the New York Mercantile Exchange. The price earlier reached $723.80, the highest since May 12, 2006. Gold is up 13 percent this year.
NEW YORK
Stock indexes surge as hopes for rate cut rise
Wall Street rose sharply Tuesday as investors grew more confident that the Federal Reserve will lower interest rates next week, even after its chairman gave no clues about the central bank’s intentions.
Traders had hoped Fed Chairman Ben Bernanke would give some signal during a speech to Germany’s Bundesbank about the Fed’s next move. Wall Street is looking for a rate cut to help ease problems caused by tightening credit availability.
Instead, Bernanke talked about the need for countries around the globe to cooperate toward economic stability.
The Dow rose 180.54, or 1.38 percent, to 13,308.39.
The Standard & Poor’s 500 index rose 19.79, or 1.36 percent, to 1,471.49, while the Nasdaq composite index rose 38.36, or 1.50 percent, to 2,597.47.
NEW YORK
Treasury prices decline as stocks head higher
Treasury prices fell Tuesday as a revitalized stock market shot higher on hopes for an interest rate cut.
The benchmark 10-year Treasury note fell 0.34 points to 103.06 with a yield of 4.36 percent, up from 4.27 percent late Monday. Prices and yields move in opposite directions.
The 30-year long bond ended 0.19 points lower at 105.63 with a 4.65 percent yield, up from 4.64 percent on Monday.
