Wednesday, January 30, 2008

Tribe Interested In Cheaper Atlantic City Property

Feather News

New Jersey´s Star-Ledger newspaper reported today that the Mohegan Tribe may be interested in purchasing the Trump Marina casino-hotel in Atlantic City.

The tribe had previously expressed interest in Atlantic City´s Tropicana but it may prove to be too costly for the tribe´s pocketbook. Analysts have estimated that the Tropicana could sell for $1 billion whereas the Trump Marina property would likely sell for under half that price.

Due to the tribe´s weak balance sheet, it would be forced to borrow the entire amount to purchase any casino property or take on partners with deep pockets.

Atlantic City casino revenues fell last year for the first time in its 29-year history as a result of the opening of Pennsylvania slot parlors. Atlantic City´s greatest competition has yet to arrive however. Two mega-casinos, one of which will be partly owned by the Mashantucket Pequot Nation, are scheduled to open in Philadelphia in the next few years.

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