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Trump Resorts continues to blame competition from slots parlors in Pennsylvania and New York state and New Jersey's partial smoking ban as the cause of the "bigger-than-expected loss." While the smoking ban is rather confusing as it leaves gamblers to guess where they can and can't smoke, it hasn't hampered other casinos nearly as much as Trump Resorts claims, as evidenced by gaming revenues reported last month in a New Jersey Casino Control Commission report. For example, Caesar's and Borgota, a joint venture between Boyd Gaming Corp. and MGM Mirage, continue to make gains.
However, NJ.com's blog explains the differences facing Trump Resorts and its rivals:
But while some Atlantic City operators have responded to heightened competition by ratcheting up promotional spending, Trump Resorts' chief executive Mark Juliano said in a written statement that the company continued to hold the line on marketing. And the company highlighted some glimmers of good news in its press release: It was able to sell more rooms to cash customers, improve hotel occupancy rates and increase revenue-per-available room 13.3% to $82.51. Indeed, Harrah's Entertainment Inc. has ratcheted up advertising in the New York area — prime time TV viewers can't go a single commercial break without seeing a promotion for one of Harrah's Atlantic City resorts. However, blaming competition, a smoking ban and a lack of advertising may not be entirely sincere. After all, Trump Resorts failed to diversify by winning a gaming license in Philadelphia and scuttling plans for a Mississippi casino, Dennis Forst, an analyst with KeyBanc Capital Markets, told The New York Times. In light of those failures, the company unsuccessfully attempted to sell itself. Perhaps its new CEO Juliano can succeed where longtime chief Jim Perry failed, or it could be back to bankruptcy court for Trump Resorts. —Matthew Wurtzel See story from The New York Times Tags: Trump, gambling, earnings Categories Deal Video
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