Tropicana, Trump in Trouble
If there was any doubt the recession was hurting casinos, Tuesday's news should put those questions to rest.
Tropicana Casino and Resort in Atlantic City will freeze the pay of top-earning employees and may lay off more than 100 dealers in a series of belt-tightening measures at the troubled gaming hall, it was announced on Wednesday.
"We're working very hard to do what we can so we don't have to lay off employees, but I can't rule out anything at this time," Tropicana President Mark Giannantonio said.in an interview Tuesday. "It depends on where the economy goes."
Tropicana is not alone among casinos in laying off workers and imposing pay restrictions as the recession has deepened. However, Tropicana's troubles have been magnified by difficulties in selling the property following the loss of its gaming license in December 2007, the Atlantic City Press reports.
Meanwhile, Donald Trump's casino firms are trying desperately to avoid bankruptcy.
From the Philadelphia Inquirer:
The deadline for Trump Entertainment Resorts Inc. to reach agreement with its lenders and note holders on restructuring $1.25 billion in debt is today. The company, which owns the Trump Taj Mahal, Trump Plaza and Trump Marina in Atlantic City, missed a $53.1 million bond payment on Dec. 1, and got a 30-day extension.
In a November filing with the Securities and Exchange Commission, the holders of roughly 70 percent of the company's outstanding senior secured notes due in 2015 agreed to wait until today to exercise their rights related to the missed bond payment. The lenders involved in a $490 million loan agreement also agreed to wait until today to exercise their rights.
If no deal is reached, Trump Entertainment could file for Chapter 11 bankruptcy protection - its fourth such filing since 1991.
Wall Street analysts say Trump Entertainment cannot cut expenses as fast as revenue is declining at its three Atlantic City casinos.
Despite the recession, Louisiana casinos have managed to stay in the black, at least for now.
Louisiana's state-licensed casinos largely maintained their level of winnings from gamblers in December.
13 riverboat casinos, the New Orleans land casino and the four casinos at race tracks took in $222.8 million last month, down slightly from $228.1 million in December 2007.
Jagajeet Chiba, Gambling911.com
