Gambling News by Gambling Headquarters

Isle of Capri Casinos Inc. shares fell sharply Friday after the company's bid for a Singapore gambling license was rejected, crimping plans for overseas expansion. Isle of Capri, based in St. Louis, watched its shares plunge $1.14, or 3.8 percent to $28.91 in midday trading on the New York Stock Exchange. Volume was heavy. Earlier Friday, Singapore awarded its second gambling license on the Sentosa Island resort to Malaysia's Genting International. Singapore reversed its decades-old ban on casino gambling last year, hoping to double visitor arrivals to 17 million by 2015. The first contract was awarded in May to Las Vegas Sands Corp., which plans to open its $3.6 billion casino resort by July 2009, based on expectations that it will attract convention and business visitors. The news prompted Morgan Joseph analyst Adam Steinberg to cut his rating on Isle of Capri to "Hold." We believe investors would be wise to take some money off the table," he wrote in a research note Friday. Nollenberger Capital Partners analyst David Barteld kept a "Sell" rating on the stock. "In our opinion, investors must refocus their attention on Isle's core operations, which have deteriorating fundamentals," the analyst wrote in a note Friday. Isle of Capri is also bidding for a license to operate a casino in Pittsburgh, with a decision expected on that by Dec. 20. Wachovia's Brian McGill thinks Isle of Capri is a slight favorite among the three bidders there. He added that the share price run-up since October indicated investors priced in Isle of Capri winning licenses in both Singapore and Pittsburgh. He rates the stock "Market Perform."