Casino operators looking for good news with stimulus plan
As Congress readies a vote on the economic stimulus plan, casino operators may find some good news with its passage.
Companies from several industries, including gaming, lobbied for a tax break on gain from debt repurchase.
Deutsche Bank gaming analyst Bill Lerner said Wynn Resorts and MGM Mirage, which have bought back debt, could benefit from language in the draft legislation.
Firms that buy back debt, including debt for debt exchanges, this year and in 2010 would be able to delay taxes on gains until 2014. At that point, the taxes due would be spread over a five-year period. The measure would also allow companies to deduct interest on the debt sooner.
“We believe inclusion of this tax break is a positive for gaming operators, allowing companies to bolster balance sheets,” Lerner told investors this morning.