Even Trump Casinos Cannot Escape The Current Economy
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The economy is getting so bad in the United States, that even one of the countries most successful businessmen cannot escape. Donald Trump has made billions of dollars by knowing how to deal with all kinds of economies.
The current economy in the US, however, has Trump Entertainment Resorts Inc. running for cover. The company has dropped in NASDAQ trading. Not a good sign for a company fresh out of bankruptcy.
The company has seen a decline in revenue for the fourth straight quarter. The company has three properties in Atlantic City, and it is becoming evident that something needs to be done.
“It doesn’t seem like they can operate with three properties in Atlantic City,” said Dennis Forst, an analyst with KeyBanc Capital Markets.
Trump Entertainment has already attempted to sell one of its properties, but last summer came and went without the sale being finalized.
The company came out of bankruptcy back in 2005, and has now posted its biggest loss since the bankruptcy. Competition from other casinos has also caused a drop in revenue for the company.
Nevada Casinos Revenue Down in January After Tumultuous Month
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People spend a lot of money during the holidays. Most of them put their gifts and other spending on credit cards. When those bills come due in January, it usually makes for a slow month for businesses.
Casinos are supposed to be different, however. They are a form of entertainment and in Nevada, it should not matter what month it is, numbers should never be down.
January revenue was down nearly five percent from the same month in 2007 for casinos in Nevada. The win was $1.06 billion for the month.
Several factors played a role in why the casino revenue numbers were down. One casino, the Monte Carlo, was shut down after a fire broke out at the top of the building. The weather was poor for the month, also contributing to the lower numbers.
Casinos on the Las Vegas Strip, popular among gamblers, were only down 1.3 percent from 2007. The only area that experienced higher numbers than in 2007 was Mesquite. Revenue was up 25.9 percent from 2007.
Slot machines continue to be the major money maker for casinos. The total win for January was $1.06 billion, and slots accounted for $700 million of that number. The rest was accumulated by live games. Hotel and bar sales are not included in any of these figures.
The state is hoping for a return to the positive in the coming months.