ATLANTIC CITY -- Another Atlantic City dealer will soon go bust.
The owners of the Trump Taj Mahal said Wednesday that the boardwalk casino has been bleeding millions of dollars a month, and it was time to fold their hand.
But before the once-lavish casino takes it last bet, and becomes the fifth casino to close in the resort city since 2014, let's look back at the rise and fall of the former crown jewel of Donald Trump's casino business.
The extravagant grand opening of the casino drew hundreds of reporters and paparazzi. It was attended by a number of celebrities, including Michael Jackson.
When it opened, Trump boasted. "Nobody thought it could be built. That was the biggest risk - just getting it built. But I love proving people wrong," he said, according to an archived report from the New York Times.
After years of hemorrhaging funds, Donald Trump bought the not-yet-completed casino in the late 1980s from Resorts for $273 million.
The construction saw years of delays, but when it finally opened, the 429-foot tower was the tallest casino in the city.
And it wasn't cheap.The construction of the casino came a price tag of $1.1 billion, which at the time was the priciest gambling establishment ever built.
Trump already owned two casinos in Atlantic City.
In its first year, the casino filed for bankruptcy and had to lay off 300 workers, due to the high debts accrued from construction, according to the Press of Atlantic City.
Trump was forced to give up half of his stake in the Taj, but he retained control of the property. Carl Icahn, the current owner of the casino, was Trump's largest creditor, according to CNN.
In 1996, Trump Entertainment Resorts, founded by the billionaire businessman, bought the casino, which became the crown jewel of the company.
Until the the upscale Borgata Hotel Casino & Spa opened in 2003, the Taj was one of the more successful casinos in Atlantic City, despite the gambling decline in New Jersey in the 1990s.
The casino hosted a number of boxing matches, including the match between George Foreman and Shannon Briggs for the heavyweight title in 1997, as well as a series of high-profile events over the years.
In 2008, the casino constructed the 782-room Chairman Tower, which became the centerpiece of the resort in its effort to compete with the Borgata and Harrah's, which just recently opened. The tower came with a price tag of $255 million.
A year later, Trump Entertainment filed for Chapter 11 for its second time. The casino company first filed for bankruptcy in 2004, when Trump turned over majority control to the bondholders.
Trump kept control of the casinos until 2009, when he resigned as chairman and gave up his remaining stake in the company. At the time, Atlantic City's gambling revenue was its fourth year of decline due to competition from neighboring states.
Over the course of the bankruptcy restructuring, 250 employees were laid off at the companies casino, including the Taj Mahal.
Trump was eventually given a 10 percent stake in the company in return for the use of his name on the casinos.
In the following years, the casino was eventually sold to another billionaire businessman, Carl Icahn, who already owned Tropicana Casino and Resort. Icahn swapped his $292 million in the Taj's debt for control of the casino.
Earlier this year, the courts ruled that Icahn was not required to honor an expired contract covering its union workers after a two year legal battle, an issue that played significant part in UNITE-Here Local 54 walking out on their jobs in July.
The union was fighting for health benefits, pensions and unpaid vacation time. Icahn was pushing for $175 million in state and local aid.
Tony Rodio, the president and CEO of Tropicana Entertainment Inc., announced on August 3 the casino would shut down after Labor Day, amidst the longest strike in the Atlantic City casino era history.
"We see no path to profitability," Rodio said in a statement.The union president attacked Icahn over the closure. The mayor called it "unfortunate and disappointing."
Icahn has invested $100 million into the casino since taking over, according to Tropicana Entertainment Inc.
If you purchase a product or register for an account through a link on our site, we may receive compensation. By using this site, you consent to our User Agreement and agree that your clicks, interactions, and personal information may be collected, recorded, and/or stored by us and social media and other third-party partners in accordance with our Privacy Policy.
Cookie Settings
Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement, (updated 8/1/2024) and acknowledgement of our Privacy Policy, and Your Privacy Choices and Rights (updated 7/1/2024).
© 2024 Advance Local Media LLC. All rights reserved (About Us).
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local.
Community Rules apply to all content you upload or otherwise submit to this site.
YouTube's privacy policy is available here and YouTube's terms of service is available here.
