Atlantic City keeps on collapsing but as surrounding states have little by little added casinos over the years this shouldn't surprise anyone.

(Reuters) - Trump Entertainment Resorts Inc (TRMY.PK), which operates two casinos in Atlantic City, joined the list of casino operators in New Jersey that have filed for bankruptcy.

The company, which Donald Trump founded but no longer controls, operates the Trump Taj Mahal Casino Resort and the Trump Plaza Hotel and Casino in Atlantic City.

The bankruptcy is the latest blow to the second-largest U.S. gambling destination after Las Vegas.

The city's casino industry is losing out to new rivals in the northeastern United States, with gaming revenue nearly halving from its 2006 peak of $5.2 billion. More than 40 casinos have opened in neighboring New York, Pennsylvania, Delaware and Maryland.

At least 8,300 people are losing jobs in Atlantic City with three casinos closing in less than a month.

Showboat, a Caesars Entertainment Corp (CZR.O) property, and Revel Casino closed recently, while Trump Plaza Hotel and Casino is due to close on Sept. 16.

Trump Taj Mahal Casino is expected to close on or shortly after Nov. 13, if the company fails to reduce expenses and negotiate a deal with its largest union, the company said in its bankruptcy petition in a Delaware court.

Trump Entertainment, which had filed for bankruptcy twice before, said it had about 2,800 full-time employees and about 1,800 seasonal employees.

The company listed assets and liabilities of between $100 million and $500 million and said it owed about $286 million to Carl Icahn-owned funds.

Donald Trump sued Trump Entertainment last month to have his name taken off the two casinos, saying the company let the casinos fall into "an utter state of disrepair."

Trump's stake in the company was wiped out when the firm filed for bankruptcy in 2009. He emerged from the reorganization the following year with a 10 percent stake and a licensing agreement that allowed the properties to continue to use his name.

The billionaire's empire spans residential real estate, hotels and resorts, including the Trump World Tower in New York City.