New Jersey online games can be cut into travel

The legalization of online gambling in New Jersey, to help stabilize the property tax base in Atlantic City, but there may be a further blow to the tourists to visit the casino gamblers bet from home, Moody's Investors Service said on Friday.

Once a gambler, a prominent destination for Atlantic City lost its ranking second-largest gaming market in the United States, second only to Las Vegas, to neighboring Pennsylvania.

The credit rating agencies have taken the Joint Appeals Board of Caesars Entertainment last Friday to cut the corporate family rating CAA2 from Caa1.

Moody's also cut its the additional Caesar's debt last Friday. Actions affect a total of $ 15.6 billion of debt, and the outlook is negative.

So far this year, the company continued the trend of negative gaming revenue in most major markets, such as cutting discretionary income to customers, higher taxes and destroy the rebound of the game needs, Moody's said.

Moody's Price Atlantic City general obligation bonds Baa1 grade, with a negative outlook. A series of bad news continued downward pressure on its credit rating, but the same current prospects and rating, Moody's said on Friday.

A potential bright spot in February of online games has been the legalization of the country, a trial period of 10 years.

Under the law, a computer server for hosting the game site will be placed in the casinos of Atlantic City, so those casinos that can be accumulated income.

The potential revenue to enhance financial performance will help to stabilize the city's taxable property values, because the market elements and the assessed value of each casino, Moody's said.

Improved the taxable value of the casino, by appeal to reduce their tax bills.

For example, the Trump Taj Mahal, the appeal to the Atlantic City property tax every year since 2008, Moody's said.

However, the ability to bet from home to the Atlantic City gambling tourism, has been declining since 2005, may lead to further erosion.

This is mainly due to several factors, Moody's said, including new gambling establishments in the surrounding countries, a region with weak economic recovery, high oil prices and the "high" state's unemployment rate, which was 9.3 per cent in February.

Tourists pay hotel taxes, parking fees back to the Casino Reinvestment Development Board to sell bonds.