Hopes are that most of the losses will be limited to losing business for one weekend, albeit one in the busy summer season, says Chad Beynon at Macquarie Capital. Pinnacle Entertainment, with three casinos in Louisiana, is one of the largest operators in the affected region.
The company postponed the Aug. 29 opening of its new L'Auberge Casino in Baton Rouge due to the storm. Other casinos operating in the area, some of which have had to close properties, include Isle of Capri, Penn National, Caesars Entertainment.
Even so, the hit isn't expected to be big. Most of the large casino operators have casinos spread around geographically, says Brian McGill of Janney Montgomery Scott. In the case of Pinnacle, the new property and another casino the company has in Baton Rouge are to reopen after the weekend, Beynon says. The hit to the company's quarterly profit to be less than 5%, he says.
Investors are mostly betting the storm won't hurt business for long. Isle of Capri rose 28 cents to $6.48 a share, Penn National fell 13 cents to $38.99, Pinnacle rose 11 cents to $11.42 and Caesars added 3 cents to $7.35.
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