Harrah’s Profit Falls on Higher Tax Rates

Harrah’s Entertainment Inc., the No. 2 U.S. casino company, said second-quarter profit fell 11% because of increased competition and tax rates in its Midwest gambling markets.

Net income dropped to $76.7 million, or 69 cents a share, from $86.1 million, or 75 cents, a year earlier. Revenue rose 6.7% to $1.08 billion.

Shares of Harrah’s rose 76 cents to $40.26 on the NYSE.

At the company’s Western casinos, including Harrah’s Las Vegas, profit was little changed at $83.4 million. Starting next month, Las Vegas-based Harrah’s and other casino companies will be subject to higher gambling revenue taxes under a budget bill approved by the Nevada Legislature.