In spite of declaring on 1 November, in its third quarter 2007 results, that revenue management, marketing and cost savings programmes continue to produce results, Trump Entertainment Resorts’ stock remains in a downward spiral. Yesterday’s close of US$4.62, following the resignation of the third Trump top executive in five months, means that shares in the casino company are down 76% since last February.

Chief Financial Officer Dale Black is going to Isle of Capri, just as chief information officer Virginia McDowell and ex CEO James Perry had done. Since Trump Entertainment Resorts failed in its Philadelphia licence bid last December there has been more bad news for the Donald Trump. A US$34 million tax settlement in favour of the company, approved by Atlantic City Council, has been put on hold by the new Mayor.

Across the Atlantic Trump’s golf resort project in Scotland was rejected by local councillors. The US$2.1 billion development would take in an unspoiled beach that is home to rare birds and protected as an area of special scientific interest. Supporters of the plan have now persuaded the Scottish government to review the planning application, and it will be considered by the economy, energy and tourism committee. One councillor says the council is being bullied and subjected to ‘hardball corporate American tactics.’

Back in the US, in a lawsuit filed in 2004, unlawful witness tampering by a Trump lawyer is being alleged. Trump is suing former business associate Richard Fields, Power Plant and The Cordish Company over a casino deal with Florida’s Seminole Tribe, where he maintains he was cheated. The question of when Trump knew about the Hard Rock deal could be answered by two witnesses. If it was in 1999 and not 2001 as Trump states, the statute of limitations could result in the dismissal of Trump’s lawsuit.

Donald Trump is now in talks with owners of a greyhound track in Revere, Massachusetts where he wants to develop a resort casino. Suffolk Downs, owned by former friend Richard Fields, in nearby East Boston also wants to build a casino. Governor Patrick Deval is proposing to licence three casinos around the state. Battle lines may be drawn although officials at the two tracks, which are separated by just two miles, say that a deal between themselves is still possible. (E-12.06.07)

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