Trump Staying Two Steps Ahead By Bringing Gaming Group Private

It has been a busy week for Donald Trump. Although he is not a part of the daily operations of Trump Entertainment Resorts, but still with his name on the company and a twenty four percent stake, the moves of the company reflect on Trump.

The next move for the company could be to take Trump Entertainment Resorts private. Reports have surfaced that the company is strongly considering the move. That is only one part of the Trump saga that has unfolded this week.

On Thursday, the company filed a lawsuit to try and stop the construction of two casinos that are being built in Philadelphia. Lawyers for the company claim that the Pennsylvania Gaming Control Board violated the company's right to conduct interstate commerce.

The state Supreme Court has already ruled on the matter. The court ruled that the Control Board did nothing wrong in their process to pick two other applicants to receive the casino licenses in Philadelphia.

The concern of the Control Board was Philadelphia's proximity to Atlantic City casinos owned by Trump. They felt that if Trump owned a casino in Philadelphia, that the possibility would be there that the company would drive customers to their AC casinos, where they would make a higher revenue.

By taking the company private, they could be banking on a win in the federal court system. If they take the company private and buy out their shareholders, then win their case in Pennsylvania, the stock of the company would then grow to great heights.

Philadelphia would be one of the biggest cities in the US with casinos, which would drive up the price of the casino owners stock. If Trump was to win the rights to one of those casinos, the company could then re-list the company on the market.

It is unlikely that Trump Entertainment will win their lawsuit. The odds are against them, but the odds have been against Trump before. With the casino market drying up around the country, the move to make the company private could be the step ahead that Trump is constantly searching for.

December 19, 2008
Posted By Larry Rutherford
Staff Editor, CasinoGamblingWeb.com
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