As millions of Americans are having problems paying their mortgages, so too are some Atlantic City casinos. Trump Entertainment Resorts became the second casino operator to say it would not make a scheduled loan payment while it tries to work out new terms with its lenders. Last month, Resorts Atlantic City did the same thing, and more could follow.
It’s the latest proof that Atlantic City’s casinos, once thought to be recession-proof, are subject to the same financial pressures affecting the rest of America. In fact, one gambling industry analyst thinks as many as five of Atlantic City’s 11 casinos could file for some form of bankruptcy protection in 2009.
Joseph Weinert, senior vice president of Spectrum Gaming Group, said it is possible the Trump Taj Mahal Casino Resort and Trump Plaza Hotel and Casino could end up filing for Chapter 11 protection. (The company is selling Trump Marina Hotel Casino to New York developer Richard Fields, a former Trump protege.)
He said other possible candidates for Chapter 11 filings include the two casinos that Colony RIH Holdings owns – Resorts and the Atlantic City Hilton Casino Resort. And the Tropicana Casino and Resort is likely to be sold in a bankruptcy court auction, possibly before the end of this year.