Trump’s Ventures
Before his election as the 45th president of the United States in 2016 and his current return as President-elect for a second term, Donald Trump was involved in various business ventures, including luxury real estate development and reality television.
Trump’s reality TV career was marked by significant success, and many notable buildings across the nation showcase his name. However, his ventures into the casino industry yielded mixed results.
Trump was a key player in the development of three Atlantic City casinos and a riverboat casino in Indiana. Despite his influence, his casino operations encountered multiple challenges, including bankruptcies, violations related to anti-money laundering, and vague associations with organized crime. As of now, Donald Trump does not own any casinos in the United States.
I’ve taken a thorough look at Trump’s casinos, tracing their evolution and the various events that unfolded there, from professional fight nights to high-stakes games that sparked movie inspirations.
Trump Plaza Casino and Hotel
Donald Trump embarked on his career in 1968, stepping into the family real estate business. By 1971, he was appointed president of Trump Management, a title he later transformed into the Trump Organization.
In March 1982, the New Jersey Casino Control Commission made a significant decision, swiftly granting Trump the license to establish a casino in Atlantic City after only a two-hour hearing, a remarkable contrast to the Commission’s usual lengthy deliberation process.
In collaboration with the gaming unit of Holiday Inn, known as Harrah’s, the casino opened its doors as Harrah’s at Trump Plaza in 1984. Later that year, to eliminate any confusion with Harrah’s Marina, the name was updated to Trump Plaza.
Early Liquidity Issues
The casinos faced challenges right from the start, managing to rack up only $144,000 in pre-tax profits during the first half of 1985. Around the same time, a conflict arose between Trump and Harrah’s after Trump acquired a nearly finished casino from the Hilton Hotel chain, which he named Trump’s Castle Hotel & Casino.
Harrah’s contended that the name was too similar to Harrah’s at Trump Plaza and could mislead customers. This disagreement escalated to the courts, but ultimately, the judicial system ruled in favor of Trump.
In May 1986, Trump decided to buy out Harrah’s for $70 million. By 1989, Trump Plaza Casino was on the rise, with Trump spending $62 million to purchase a nearby casino. He also invested $63 million in a bankrupt casino hotel, integrating it as an annex to the original structure.
The atmosphere at the Trump Plaza Casino during the late 1980s and early 90s was electric. While it’s often said that WrestleMania IV and V took place there, Trump was merely a sponsor for those events, which were actually hosted at Atlantic City Boardwalk Hall.
However, a notable incident worth mentioning at the Trump Plaza was the high-stakes baccarat game where Akio Kashiwagi famously lost $10 million. This event later became the inspiration for Martin Scorsese’s film Casino.
As the 1990s approached, the Trump Plaza Casino faced financial difficulties, partly due to the opening of Trump’s other casino, Trump Taj Mahal, just a mile away.
In 1991, the casino almost defaulted on a payment to bondholders, but managed to dodge the crisis by taking out a $25 million mortgage on the parking garage. By March 1992, the casino opted for a prepackaged bankruptcy due to accumulating debts of $250 million.
Plans for expansion in 1993 were scaled back after it became evident that they would necessitate acquiring Vera Coking’s property. Consequently, the $42 million expansion plan did not include a limousine parking lot. By 1995, Trump transferred ownership of Trump Plaza Casino and Hotel to Trump Hotels & Casino Resorts.
Bankruptcy
Taj Mahal
Construction of the Trump Taj Mahal commenced in 1983, initiated by Resorts International, which also owned another casino in Atlantic City, known as Resorts Casino Hotel. Following the death of the head of Resorts in 1986, the company lost its direction, leading his heirs to sell a controlling interest to Trump for $70 million.
At that time, Trump already owned two casinos in Atlantic City, and New Jersey regulations prohibited any individual from owning three casinos in AC. Upon being appointed chairman of Resorts International, Trump planned to close Resorts Casino and convert it into an annex of the Trump Taj Mahal.
The Bankruptcy
In 2004, Trump Hotels & Casino Resorts sought bankruptcy protection. As a result of this arrangement, Trump’s involvement in the company was greatly diminished, leading to its rebranding as Trump Entertainment Resorts. A later bankruptcy agreement in 2009 allowed Trump to obtain 10% of the company’s shares, enabling the continued use of his name and likeness.
In August 2014, this provision gained attention when Trump initiated legal action against Trump Plaza Casino and Hotel and Trump Taj Mahal, which had deteriorated to a point where he believed they were no longer worthy of his name. Reports in July had already indicated that the casino planned to close in September, and on September 16, 2014, it permanently ceased operations.
A protracted discussion regarding the demolition delayed the process until February 17, 2021, when Trump Plaza Casino and Hotel became the second casino in Atlantic City to be demolished by implosion.