A group of investors, led by coffeehouse chain and casino owner Hard Rock International, is set to acquire the shuttered Trump Taj Mahal casino resort in Atlantic City. The gambling venue closed doors last fall after a prolonged workers strike.
The deal is subject to certain closing conditions, as confirmed by Trump Taj Mahal owner Icahn Enterprises, the Atlantic City business of billionaire investor Carl Icahn. The company said that the deal does not include Tropicana Casino & Resort, which, too, is owned by Mr. Icahn.
Mr. Icahn bought the ailing Trump Taj Mahal back in 2015, saving it from bankruptcy. Back then, the businessman pledged to invest up to $200 million to breathe new life into the property. However, the venue failed to improve its profitability. A more-than-a-month-long strike of unionized workers last summer came as another heavy blow to the once strikingly popular casino. Failing to reach an accord with strikers, Mr. Icahn decided that it would be better to close the venue, leaving more than 2,100 people unemployed.
News about Taj Mahal’s sale spread early last month. Mr. Icahn said in a statement that he was aware he would probably sell the property at a significantly lower price, as there were not many investors who would be interested to put significant funds into Atlantic City’s casino market. Although the local casino industry has seen significant improvement over the past year, it is still too far from regaining its former glory.
As it seems, Mr. Icahn may have been wrong about the lack of interest in the market, as a top gambling operator is now set to acquire the resort that was opened back in the 1990s with US President Donald Trump as its owner.
Hard Rock International, a company controlled by the Seminole Tribe of Florida, said in a Wednesday statement that it is ready to invest more than $300 million to revive the property. It will be reopened as a hotel and casino resort and will be renamed Hard Rock Hotel & Casino Atlantic City. Hard Rock International already operates a still active dining facility at Trump Taj Mahal and, according to media reports, has been eyeing Atlantic City’s casino industry since 2010.
The operator’s Chairman, Jim Allen, said in a Wednesday statement that they are confident in the success of their Atlantic City endeavor.
Hard Rock International currently operates 6 casinos in its domestic Florida market and 5 international ones. The company is set to build the first casino resort in the Republic of Cyprus together with fellow developer and operator Melco International Development, and has recently revealed interest in the newly legalized Japanese casino market.
