NJ online gaming is credit-positive for Borgata, Caesars

Reuters News
Posted: Feb 27, 2013 2:45 PM
NJ online gaming is credit-positive for Borgata, Caesars

(Reuters) - Fitch Ratings said on Wednesday that New Jersey's legalization of online gaming was a credit positive for Borgata Hotel Casino & Spa and Caesars Entertainment Corp..

Fitch also noted that the move by New Jersey, which on Tuesday legalized online gaming within the state, showed that online gaming was picking up traction as more states consider offering gambling over the Internet.

While Nevada and Delaware have recently allowed some form of online gaming, New Jersey's may become the "most meaningful" U.S. state to pass such legislation so far, in part because of its larger population base, Fitch said.

Fitch rates Borgata's issuer default rating a B-minus with a stable outlook. It rates Caesar's IDR a CCC with a negative outlook.

Marina District Finance Co. is the issuing entity for the Borgata, which is owned by Boyd Gaming Corp..

(Reporting by Hilary Russ; Editing by James Dalgleish and Martin Golan)