Trump Entertainment Resorts submitted papers to court on Friday, November 14, thus announcing that its Taj Mahal Casino Resort is to be shuttered on December 12. It will be the fifth of all twelve casinos, operating in Atlantic City, to close its doors this year. Robert Griffin, CEO of the entertainment company, stated that Taj Mahal will be shut down, provided that union does not withdraw its appeal from court.
The appeal in question was filed due to a court order that was to cancel health insurance and pension coverage of workers.
Trump Entertainment Resorts shared that the closure will take place, for no state and local tax exemption was granted to the casino, in order for it to be able to keep on operating. The company also informed the New Jersey Division of Gaming Enforcement about its plans to bring the venue to a close on or around December 12.
Taj Mahal officially opened doors in 1990. It is known to be offering a total of 2,531 slot machines and 177 table games to its visitors and guests, not to mention the numerous other luxurious treats they can take advantage of.
Although Trump Entertainment’s executives did not comment thoroughly on the issue, attorneys of the company released a written statement, ensuring that debtors will take due measures in order for the venue to stop operating on the above-mentioned date.
Currently, more than 8,000 have remained unemployed, due to the closure of 4 of Atlantic City’s twelve casinos. If Taj Mahal really shuts down, 3,000 more people will lose their jobs. City’s Mayor Don Guardian stated that he was well-aware how difficult it might be for its residents. He also ensured that local authorities tried their best to keep the casino functioning, yet its executives needed to pay their taxes, just like everyone else.
Trump Entertainment has been in talks with investor Carl Icahn, who is no stranger to Atlantic City casino scene and labor unions. Icahn is to pay $286 million, in order to become the owner of the gambling company. He is also planning to invest $100 million in Trump Entertainment, in case it gets its tax exemptions.
The president of the Local 54 of the Unite-HERE workers union Bob McDevitt apparently did not approve of Icahn’s tendency to only criticize everyone without actually helping. The investor was also accused of trying to exploit Taj’s delicate situation for his own benefit.
Atlantic City has been posting a decrease in its revenues for more than eight years. This is due to the fact that casinos were opened in the neighboring states and they have been doing quite well. Back in 2006, when Pennsylvania’s first gambling venue opened doors, Atlantic City gained a total revenue of $5.2 billion. In 2013, the city acquired $2.86 billion and this year’s turnover is expected to be considerably lower.
It is also important to mention that the entertainment company’s unsecured creditors asked Judge Kevin Gross to allow them to file their own Chapter 11 liquidation plan as opposed to Trump Entertainment’s plan. A hearing has been appointed for December 4, so as for the court to decide on what is best for the troubled casino.
Taj Mahal is the last operating casino, owned by Trump Entertainment Resorts. Trump Marina was sold to Landry’s Inc. and turned into the Golden Nugget and Trump Plaza was shuttered back in September.
The news about Taj Mahal’s closure came in the wake of Gov. Christie’s proposed plan for the revival of Atlantic City.
