Recently Wall Street analysts have voiced opinions on the sale of the three Atlantic City casinos owned by Trump Entertainment.
An analyst from KeyBanc, Dennis Forst states that the only way that makes sense for Trump is to sell the casinos individually.
As has been reported before, the casinos are aging properties, although significant funds have been utilized to upgrade the Taj Mahal.
Besides the buy price and funds needed to make the properties attractive to draw customers from other properties, there is one other roadblock to a possible package deal for all three casinos.
Any buyer for all three may face resistance from the Casino Control Commission which oversees the licensing of casino owners. The Harrah’s Corporation controls over 40 percent of the Atlantic City floor space with four casinos (actually five as the Claridge was decertified when it was bought by Bally's. When Harrah’s bought Caesars Entertainment which owned Bally's Caesars and Hilton (and as mentioned previously Claridge) it was forced to dispose of one property which was the Hilton.
The CCC may object or act with considerable care in regards to any buyer seeking to buy all three of Donald Trumps casinos.
It is a virtual impossibility for Harrah’s to be a suitor for the properties unless there could be a spin-off corporation started.
Trump casinos were relicensed, although at their hearings it was noted that in the first two quarters of this year Trump Entertainment has declined 12 percent in gross revenues.
Dennis Gomes, a former CEO of the predecessor corporation, has expressed interest and is in negotiations to purchase the properties. There is evidently some distance between the two parties on price.
As was previously mentioned Gomes is “hot” to return to the Atlantic City scene.
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