Trump Entertainment Stocks Drop

The New Jersey budget crisis that resulted in the closure of Atlantic City gambling floors is still causing disappointing effects, this time in the shares of Trump Entertainment Resorts Inc. and other casinos, which plummeted recently.

Trump Entertainment shares lost $1.08, or 5.3%, falling to $19.20 in Nasdaq composite trading recently. Analysts note that it was the worst drop for Trump Entertainment in over a year. Trump has all three of its casinos - Trump Marina, Trump Plaza and Trump Taj Mahal - in Atlantic City.

Trump Entertainment Chief Operating Officer Mark Juliano said Trump foresees a loss of around $3.5 million to $5 million in daily revenue. "We are definitely starting to feel the impact," said Juliano.

In a note to investors, Deutsche Bank expressed belief that Trump Entertainment would lose a cent a day in per-share earnings, which will mean a real struggle for the company.

The budget issue in New Jersey stemmed from Governor Jon Corzine's decision stating the 190 state employees tasked to function as casino monitors were "non-essential" government personnels.

New Jersey, which is known as the second-largest U.S. gambling market, cannot operate casinos legally without monitors or inspectors from the government.

Due to the casino closures, the gambling industry in New Jersey lost around $16 million in revenue a day.