"Casino dominoes are toppling in the Northeast as states scramble to obtain or preserve gambling revenue, often packaging the initiatives as job creation in a shaky economy.

Massachusetts, many of whose residents have flocked across state lines to gamble, approved casino games two months ago, prompting countermoves in Rhode Island. New York Gov. Andrew Cuomo in last week's state of the state address called for a constitutional amendment to allow non-Indian gaming.

The Internet also looms, notably after last month's U.S. Department of Justice ruling allowing the expansion of online gambling. New Jersey and Connecticut, among others, have their eyes on Internet wagering.

"The Northeast gaming market has become a lot more competitive," said Standard & Poor's analyst Melissa Long. "The amount of dollars available for gaming in the region is finite, however, and what we see are states trying to get their share of the pie.""

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Northeast Struck by Casino Fever (Bond Buyer 1/9)