This was apparently the case for some Trump Entertainment Resorts Inc. (TRMP) customers, which will likely reduce gaming revenues for this an other operators, the analyst said in a research note.
She also thinks increased competition for racetracks in New York and slot machine facilities in Philadelphia could hurt revenue growth for Atlantic City casinos over time.
While Trump Entertainment exited bankruptcy in the middle of 2005, its recent property upgrades and focus on high-end customers have not helped business as much as was anticipated.
Ms. Noland also pointed to the company’s failure to win a gaming license in Philadelphia earlier this year as a reason for its dependence on Atlantic City.
“There is no liquidity issue at present, but leverage remains high and we are comfortable only with paper secured by the casino assets,” she added.