Trump's Unsuccessful Casino Ventures: A Look at His Gaming Empire's Misfortunes
In the realm of real estate and casino development, few names resonate as much as that of Donald Trump. His ventures in Atlantic City and beyond, particularly in the gambling industry, have been marked by ambition, financial volatility, and legal challenges.
One of Trump's earliest casino ventures in Atlantic City was the Trump Plaza, which opened in 1984 as Harrah's at Trump Plaza. The casino expanded in 1989 when Trump purchased a neighbouring casino for $62 million. However, the casino almost defaulted on a 1991 payment to bondholders, narrowly avoiding the issue by taking out a $25 million mortgage on the parking garage. Despite these early liquidity issues, the casino managed to reopen under its mortgage holder, Chemical Bank, in 1992. Trump gave ownership of Trump Plaza Casino and Hotel to Trump Hotels & Casino Resorts in 1995. The casino shut its doors for the last time on September 16, 2014.
Trump's most ambitious casino project in Atlantic City was the Trump Taj Mahal, which opened in 1990. The Taj Mahal was a symbol of Trump's ambition, but it also became emblematic of the financial difficulties he faced in the casino industry. The casino went through several bankruptcies, including in 2004 and again five years later, with debts reaching into the hundreds of millions. Trump’s ownership stake was reduced to about 10% after restructuring. Despite these financial challenges, Trump served as chairman of the company managing the Taj Mahal, later renamed Trump Entertainment Resorts, from 1995 to 2009 at various times.
Trump's Taj Mahal was not the only casino to face controversy. In 1991, the New Jersey Casino Control Commission fined the Trump Plaza $200,000 for allegedly moving African American and female employees away from the craps tables to please Robert LiButti, a known mob associate and high roller. Trump himself was not held personally liable or investigated in that matter, and he denied knowing LiButti personally.
Trump's casino involvement is also shadowed by allegations of connections with organized crime figures and controversies around labor practices and regulatory compliance. His businesses filed for corporate bankruptcy multiple times, yet Trump personally avoided bankruptcy.
In Gary, Indiana, Trump proposed plans for a riverboat casino in 1993, but details about his casino ventures in the city are limited. Historically, Trump did own or attempt to own casino-related ventures in other cities, including Gary, but specific information about these projects is scarce.
Trump's casino history is a testament to his ambition and the complexities of the casino industry. From his first major casino venture, Trump Plaza, to his flagship project, the Trump Taj Mahal, Trump's casinos have been marked by financial restructurings, legal issues, and controversies. Yet, they also reflect a pattern of ambitious real estate and casino developments that continue to shape the landscape of the gambling industry.
- Trump's casino-related ventures extend beyond his projects in Atlantic City, as he proposed a riverboat casino in Gary, Indiana, in 1993, though details about these endeavors are limited.
- Beyond his casino projects, Trump's casino culture is often associated with casino personalities and controversies, including allegations of connections with organized crime figures and labor practices disputes.
- The blog on casino and gambling history might delve into the influence of individuals like Donald Trump on the casino industry, examining his casino-and-gambling ventures, their financial challenges, and their impact on casino-culture.
