Tuesday 16th September 2008 Casino shares fall on concerns over AIG
As stock markets around the world continue to tumble on concerns about the worldwide economy and how a series of high profile corporate disasters will hit sentiment, the casino sector has been hit for the second day in a row. Aside from the obvious concerns that economic activity will slow further and money will be even tighter, many casino operators are watching the AIG situation very carefully.<br />
<br />
AIG is the largest insurance company in the world and heavily involved in the casino industry on a number of levels. If the group was to go under, which is possible, this would leave many casinos scrambling for cover elsewhere with the threat of increased premiums due to the current trading environment and lack of liquidity in the money markets.<br />
<br />
Insurance companies will be battening down the hatches over the net few weeks and we could see insurance premiums increasing. This will place yet more pressure on an industry which depends on the ‘free money’ which consumers have to spend on leisure activities. This pool of income has been diminishing over the last few months and while we have not seen any major casualties in the casino sector, the worst is yet to come.
Source: gambling_CMS_tmark938
Poker news index
Poker Homepage
|
POKER NEWS >> Casino shares fall on concerns over AIG
