April 16, 2007
TRUMP CAN DO THE JOB NEEDED TO CREATE A SUCCESS IN ATLANTIC CITY
Analysis of:
CAN TRUMP CASINOS KEEP UP WITH THE NEIGHBORS ? | www.nytimes.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Implications: Donald Trump has always had the ability to make his Atlantic City properties the ones to look up to in this area. My feel here was that it was not a necessary evil to make competition with his own properties, but to the others on the boardwalk. There is no doubt that the newer properties had a temporary advantage - they always do. It is not only a fact only in AC, but in any gaming area. There real problem that faced the Trump gaming organization was how not to maintain the status quo...........
Analysis: Love him or not, Donald Trump is a guy to be admired for his sense of business. It seems as though there must have been some feeling of build it and they will come in their policy in his AC properties. True ?? - maybe, maybe not. We have made it clear in other articles that keeping the status quo has never been a good policy in the gaming business. Nevada found that out with the arrival of The Mirage in 1989. All other laughed at the antics of Steve Wynn opening such a costly place. He, in his infinite wisdom, rushed to the bank with the majority of the gaming dollars. His policy was to be the best of the best, and he certainly was. Not only did he have a beautiful new property, but he maintained it to the highest caliber possible. Not really so with the Trump properties in AC. It's certainly hard enough to maintain a customer base, but one method to do so is to keep your properties in top notch condition.
There must be a goal of having the slots and video games updated at regular intervals. It's an imperative maneuver as they are the heart of the gaming business - why would you not keep up??? The live games are a big factor in the gaming figures, however the cost of maintaining them is vastly higher than slots. I am sure that the staff of the Trump Casinos must have had a group of people that kept up the vigil on the other properties that were in competition. My guess is that they either reported to deaf ears or possibly did not do a thorough job. It easy to fix items in a hotel that is in need of updating - food and beverage, entertainment,transportation to name a few. They are all important in maintaining equity with other hotels in the area - but they are basically a gaming establishments and emphasis must always give way to the gamblers fancy.
The plans for Trump to tweak their casinos in Atlantic City is a wise choice. They have a serious place in the gaming establishment of that city. The loss of a property their would be a very real problem for investors. Any time a property decides to make an internal investment only enhances their chance of staying on the front edge of the industry. My hats off to Trump for making this important move in his New Jersey properties................
Analysis: Love him or not, Donald Trump is a guy to be admired for his sense of business. It seems as though there must have been some feeling of build it and they will come in their policy in his AC properties. True ?? - maybe, maybe not. We have made it clear in other articles that keeping the status quo has never been a good policy in the gaming business. Nevada found that out with the arrival of The Mirage in 1989. All other laughed at the antics of Steve Wynn opening such a costly place. He, in his infinite wisdom, rushed to the bank with the majority of the gaming dollars. His policy was to be the best of the best, and he certainly was. Not only did he have a beautiful new property, but he maintained it to the highest caliber possible. Not really so with the Trump properties in AC. It's certainly hard enough to maintain a customer base, but one method to do so is to keep your properties in top notch condition.
There must be a goal of having the slots and video games updated at regular intervals. It's an imperative maneuver as they are the heart of the gaming business - why would you not keep up??? The live games are a big factor in the gaming figures, however the cost of maintaining them is vastly higher than slots. I am sure that the staff of the Trump Casinos must have had a group of people that kept up the vigil on the other properties that were in competition. My guess is that they either reported to deaf ears or possibly did not do a thorough job. It easy to fix items in a hotel that is in need of updating - food and beverage, entertainment,transportation to name a few. They are all important in maintaining equity with other hotels in the area - but they are basically a gaming establishments and emphasis must always give way to the gamblers fancy.
The plans for Trump to tweak their casinos in Atlantic City is a wise choice. They have a serious place in the gaming establishment of that city. The loss of a property their would be a very real problem for investors. Any time a property decides to make an internal investment only enhances their chance of staying on the front edge of the industry. My hats off to Trump for making this important move in his New Jersey properties................
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