Trump Hotels sees possible drop in market share - Thursday 12th of May 2005

Trump Hotels & Casino Resorts Inc. (DJTCQ.OB: Quote, Profile, Research) on Monday said business at its casinos could be hurt by a number of factors, including competition from a glitzy new rival casino in Atlantic City and mega-mergers in the industry.

Trump Hotels, which filed for Chapter 11 protection in November, said in a regulatory filing that overall business in Atlantic City has not increased as much as anticipated following the July 2003 opening of the Borgata Hotel Casino & Spa.The Borgata, an opulent, upscale joint venture between MGM Mirage (MGM.N: Quote, Profile, Research) and Boyd Gaming (BYD.N: Quote, Profile, Research) , opened in July 2003 and is already planning a two-phase expansion to include additional gaming, restaurants, retail, parking and a second hotel tower."To the extent that the Trump Atlantic City Properties, especially Trump Marina, do not have the financial resources to make capital expenditures to improve their properties, this adverse effect may be more acute," Trump said in its quarterly filing with the Securities and Exchange Commission.

The company also said the three mergers in the industry will further hamper its business by reducing its market share.Harrah's Entertainment (HET.N: Quote, Profile, Research) plans to buy Caesars Entertainment (CZR.N: Quote, Profile, Research) in a deal that would make the combined company the world's largest casino operator. MGM Mirage recently completed its merger with Mandalay Resort Group; and Penn National (PENN.O: Quote, Profile, Research) plans to buy Argosy Gaming (AGY.N: Quote, Profile, Research) , in a deal expected to close in the third quarter of 2005.Trump also said the recent legalization of gambling in neighboring states such as Pennsylvania and New York could adversely affect overall business at its properties in Atlantic City.Trump owns the Trump Taj Mahal, Trump Plaza, and Trump Marina casinos in Atlantic City. It also owns the Trump Casino Hotel in Gary, Indiana.The company plans to exit bankruptcy on May 20, 2005.

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