It’s no secret that Atlantic City has had its share of hard times lately. Some reports say casinos in the area have seen a 46-percent reduction in revenue since 2006 and that its downward spiral continues.
Until recently, the city had 12 casinos in total, but four have already closed their doors, and the Trump Taj Mahal Casino may be the fifth.
Other Recent Farewells
The Showboat Hotel and Casino was a massive undertaking which first opened its doors in 1987. It consisted of 516 rooms, a bowling center, and a 60,000 square-foot casino. Over the years, it was remodeled a couple of times, updating its theme to Mardi Gras, adding a 90 million-dollar tower, a full-service spa, a pool and the House of Blues. In its glory days, it hosted the likes of Bob Hope, Phyllis Diller and Willie Nelson. Although it was still supposedly profitable, Caesars Entertainment opted to close Showboat in August 2014, leaving behind a rich history, and 1630 displaced employees who did not receive transfers to Caesars’ other establishments.
Revel Casino, on the other hand, didn’t have much time to leave a mark. Although the building reportedly cost 2.4 billion dollars to construct, and became the tallest building in Atlantic City, it only lasted about two years. It opened in 2012, though financial woes began during construction, as investors walked away mid-project. No expense was spared, as Revel boasted two nightclubs, 13 restaurants, numerous pools, a 130,000 square-foot casino floor, and 1399 rooms. They also poured big bucks into securing top-notch entertainment. The Eagles, Rhianna, Beyonce, and Maroon 5 all performed there.
Despite the effort and cash put into Revel Atlantic, it closed its doors in 2014 as well.
The Atlantic Club Casino Hotel was originally built in 1980 and named Golden Nugget Hotel & Casino. It changed hands and management repeatedly over the years, eventually settling in as a casino for locals in 2012. It was one of the smallest casinos in Atlantic City, with 75,374 square-feet of gaming space and 801 rooms. In its heyday, famous performers like Dolly Parton and Frank Sinatra graced the stage of the casino’s opera house. When it closed in 2014, it was essentially dissected and various parts of it went to different casinos and investors.
The Trump Hotel and Casino, also known as Harrah's at Trump Plaza when it opened, was a fixture in Atlantic City. The luxury resort opened in 1984 and, over time, developed into a space that held 906 rooms, a 91,181 square-foot casino floor, numerous restaurants, two nightclubs, a massive showroom, and a health club. During operation, it hosted several major wrestling events. Trump apparently tried to sell the casino in 2011, but the senior lender of the mortgage, Carl Icahn, refused to sign at the agreed-upon price. Unable to sell, renovate, or expand, the Trump Hotel and Casino also closed in 2014, leaving an estimated 1000 employees without jobs.
The Trump Taj Mahal
Until the Borgada opened, the Trump Taj Mahal was the largest and highest-grossing casino in Atlantic City. It opened in 1990, with a total construction cost of about a billion dollars, and has featured performers like Michael Jackson. At the present time, it has 2,248 rooms, 167,321 square-feet of gaming space, a strip club and numerous restaurants. It’s reportedly losing money hand-over-fist, though, and Trump Entertainment Resorts worked out a deal with Carl Icahn to try to save the casino. Mr. Icahn is responsible for investing an additional 100 million dollars into renovations, and he’s taken steps to reduce the overall operating costs. One of these recent measures was to eliminate union healthcare and pension plans for employees. Although negotiations with Local 54 of the Unite-HERE didn’t go well, a judge ruled in favor of Mr. Icahn, and there’s some hope the measure help keep the casino’s doors open. The fact that Icahn additionally owns Tropicana Casino and Resort of Atlantic City, which he saved from closure in 2010 is also reassuring.
However, in a recent statement, Mr. Icahn said, “One overriding fact is perfectly clear: The Taj is quickly running out of money and will almost certainly close.” This means that over 3,000 employees will lose their jobs, and Atlantic City will lose its fifth casino in 2014, bringing the overall Atlantic City casino closure rate to over 40-percent. Icahn has also said, “Frankly, several of my advisers have told me that if the city and the state did not come up with the money, they'd be doing me a large favor,” in regard to a proposed tax break and state aid. Those deals have fallen through, but Icahn’s words have given indication of his frustration with the deal and shows that he stands to personally benefit more if The Taj Mahal closes its doors.
Until recently, the city had 12 casinos in total, but four have already closed their doors, and the Trump Taj Mahal Casino may be the fifth.
Other Recent Farewells
The Showboat Hotel and Casino was a massive undertaking which first opened its doors in 1987. It consisted of 516 rooms, a bowling center, and a 60,000 square-foot casino. Over the years, it was remodeled a couple of times, updating its theme to Mardi Gras, adding a 90 million-dollar tower, a full-service spa, a pool and the House of Blues. In its glory days, it hosted the likes of Bob Hope, Phyllis Diller and Willie Nelson. Although it was still supposedly profitable, Caesars Entertainment opted to close Showboat in August 2014, leaving behind a rich history, and 1630 displaced employees who did not receive transfers to Caesars’ other establishments.
Revel Casino, on the other hand, didn’t have much time to leave a mark. Although the building reportedly cost 2.4 billion dollars to construct, and became the tallest building in Atlantic City, it only lasted about two years. It opened in 2012, though financial woes began during construction, as investors walked away mid-project. No expense was spared, as Revel boasted two nightclubs, 13 restaurants, numerous pools, a 130,000 square-foot casino floor, and 1399 rooms. They also poured big bucks into securing top-notch entertainment. The Eagles, Rhianna, Beyonce, and Maroon 5 all performed there.
Despite the effort and cash put into Revel Atlantic, it closed its doors in 2014 as well.
The Atlantic Club Casino Hotel was originally built in 1980 and named Golden Nugget Hotel & Casino. It changed hands and management repeatedly over the years, eventually settling in as a casino for locals in 2012. It was one of the smallest casinos in Atlantic City, with 75,374 square-feet of gaming space and 801 rooms. In its heyday, famous performers like Dolly Parton and Frank Sinatra graced the stage of the casino’s opera house. When it closed in 2014, it was essentially dissected and various parts of it went to different casinos and investors.
The Trump Hotel and Casino, also known as Harrah's at Trump Plaza when it opened, was a fixture in Atlantic City. The luxury resort opened in 1984 and, over time, developed into a space that held 906 rooms, a 91,181 square-foot casino floor, numerous restaurants, two nightclubs, a massive showroom, and a health club. During operation, it hosted several major wrestling events. Trump apparently tried to sell the casino in 2011, but the senior lender of the mortgage, Carl Icahn, refused to sign at the agreed-upon price. Unable to sell, renovate, or expand, the Trump Hotel and Casino also closed in 2014, leaving an estimated 1000 employees without jobs.
The Trump Taj Mahal
Until the Borgada opened, the Trump Taj Mahal was the largest and highest-grossing casino in Atlantic City. It opened in 1990, with a total construction cost of about a billion dollars, and has featured performers like Michael Jackson. At the present time, it has 2,248 rooms, 167,321 square-feet of gaming space, a strip club and numerous restaurants. It’s reportedly losing money hand-over-fist, though, and Trump Entertainment Resorts worked out a deal with Carl Icahn to try to save the casino. Mr. Icahn is responsible for investing an additional 100 million dollars into renovations, and he’s taken steps to reduce the overall operating costs. One of these recent measures was to eliminate union healthcare and pension plans for employees. Although negotiations with Local 54 of the Unite-HERE didn’t go well, a judge ruled in favor of Mr. Icahn, and there’s some hope the measure help keep the casino’s doors open. The fact that Icahn additionally owns Tropicana Casino and Resort of Atlantic City, which he saved from closure in 2010 is also reassuring.
However, in a recent statement, Mr. Icahn said, “One overriding fact is perfectly clear: The Taj is quickly running out of money and will almost certainly close.” This means that over 3,000 employees will lose their jobs, and Atlantic City will lose its fifth casino in 2014, bringing the overall Atlantic City casino closure rate to over 40-percent. Icahn has also said, “Frankly, several of my advisers have told me that if the city and the state did not come up with the money, they'd be doing me a large favor,” in regard to a proposed tax break and state aid. Those deals have fallen through, but Icahn’s words have given indication of his frustration with the deal and shows that he stands to personally benefit more if The Taj Mahal closes its doors.
