Casino operators mostly slip during 3rd quarter

Casino operators are struggling to keep an influx of customers as Americans contend with rising food and gas costs, the continued housing downturn and eroding credit. This potent mixture has led many U.S. residents to cut back on discretionary spending, leaving casino operators trying to find ways to lure them back. Diminishing credit has also made it harder for casino companies to follow through with development plans, with many abandoning or suspending projects.

For the period from July 1 to Sept. 29, Ameristar Casinos Inc., which has been rumored to be a potential takeover target, was nearly flat.

Those that didn't fare as well include Trump Entertainment Resorts Inc., which fell 40.3 percent and Pinnacle Entertainment Inc., down 34.4 percent. Earlier this month Pinnacle said two of its Louisiana properties suffered minimal damage from Hurricane Gustav, while its Lake Charles, La., casino and hotel incurred minor damage from Hurricane Ike. The company also dropped plans for a proposed $623.6 million casino resort and 500-room hotel in Wyandotte County, Kan., blaming "the current turmoil in the financial markets."

Shares of Las Vegas Sands Corp. declined 30.2 percent.