Herbst Gaming saw continued distress in the second quarter of 2008, reporting a $62.3 million loss for the period.

The company, which suggested earlier this year that it might have to file for bankruptcy, is losing money from its 7,000-machine slot route in Nevada—numbers that started to drop after the statewide smoking ban was enacted in January 2007—and is taking a heavy hit at the three casinos in Primm it purchased from MGM Mirage in April 2007.

In its latest filing with the Securities and Exchange Commission, the company reported an 11 percent drop in slot route revenue and an 8.4 percent drop in casino revenue. Overall revenues were $204.5 million, down 4.5 percent from the second quarter of 2007—a quarter in which the company reported only a $1.4 million loss.

By Casino Connection Staff

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