The casino was inaugurated in 1990 by its owner, Donald Trump, and was built at a total cost of nearly US$1 billion. Original restaurants at the Taj Mahal included Hard Rock Cafe, Sultan's Feast, Dynasty, Il Mulino New York, Moon at Dynasty, and Robert's Steakhouse. It was also the home of Scores, the country's first in-casino strip club.
The Taj Mahal came to the brink of closure in 2014 as its parent company went through bankruptcy, but ultimately remained open under the new ownership of Icahn Enterprises. In 2015, the Taj Mahal admitted to having "willfully violated" anti-money-laundering regulations for years and was fined $10 million. It was the highest penalty ever levied by the U.S. federal government against a casino. On August 3, 2016, it was announced that the Trump Taj Mahal would close after Labor Day because it was losing millions of dollars each month.[4] It was closed on October 10, 2016.
On March 1, 2017, the Seminole Tribe of Florida through its Hard Rock International brand, and the Morris and Jingoli families, announced its purchase of the facility and conversion to the Hard Rock Hotel and Casino brand. It reopened on June 27, 2018, a day earlier than planned.[1]
History
Trump Taj Mahal era: 1990–2016
Trump Taj Mahal casino floor, c.2004
Construction of what was originally known as the Taj Mahal commenced in 1983 by Resorts International, owner of the neighboring Resorts Casino Hotel, with an estimated budget of $250 million.[5][6] Resorts head James Crosby said it might be named the United States Hotel, in reference to the city's first major hotel.[7]
After Crosby's death in April 1986, Resorts International became a takeover target.[8] The Taj Mahal had encountered construction problems, and Crosby's heirs, lacking experience in large development projects, doubted their ability to complete it successfully.[9]Donald Trump, who owned two other Atlantic City casinos, beat out several other bidders to purchase a controlling stake in the company for $79 million in July 1987.[10] Trump was appointed chairman of Resorts International, and said he would complete the Taj Mahal in about a year.[10]
Because New Jersey law prohibited anyone from owning more than three casinos, Trump planned to close the original Resorts casino and operate it as a hotel annex to the Taj Mahal.[11][12]
As the total budget had ballooned to $930 million, Resorts sought to raise $550 million to complete the Taj Mahal, but struggled to find the financing.[13] With the company claiming to be near bankruptcy in early 1988, Trump made a tender offer to buy all outstanding stock for $22 a share, stating that he was willing to personally finance the construction but only if he owned the entire company.[14] Television producer Merv Griffin made an unexpected offer to purchase the company for $35 a share,[15] sparking a highly publicized takeover battle,[16] with Trump and Griffin filing lawsuits against each other.[17] The two ultimately reached a settlement, which was executed in November 1988, with Griffin purchasing the company, and Trump purchasing the Taj Mahal from the company for $273 million.[18]
Trump raised $675 million to finance the purchase and completion of the casino, primarily through junk bonds with a 14 percent interest rate.[19][20]
The casino opened on April 2, 1990.[21] With 120,000 square feet (11,000m2) of gaming space, it claimed to be the largest casino in the world (though this was disputed by the Riviera),[22] and billed itself as the "eighth wonder of the world".[23] An elaborate grand opening ceremony was held three days later.[24]
In 1991, the Taj Mahal went through a prepackaged bankruptcy, resulting in Trump giving a 50 percent stake in the business to its bondholders in exchange for lowered interest rates and a longer payoff schedule.[25][26]
In 1996, Trump's new publicly traded company Trump Hotels & Casino Resorts purchased Taj Mahal in a transaction that valued the property at $890 million.[27][28] In the 1990s, Trump's Taj Mahal casino was "the world's largest, most flamboyant casino" and Trump took on an "enormous amount of debt" to launch it.[29] During eighteen months after its April 2, 1990 opening,[21] when the Casino was on the verge of bankruptcy, it became the "preferred gambling spot for Russian mobsters living in Brooklyn, according to federal investigators who tracked organized crime in New York City".[29]
In 2001, the building hosted the UFC 31 and UFC 32 events, which were the first UFC cards held during the leadership of Dana White.[30][31][32]
The Taj Mahal was the highest grossing casino in the city until the opening of The Borgata in 2003. In 2008, The Chairman Tower opened, bringing the complex to over 2,000 rooms.[citation needed]
In 2013, the Taj Mahal opened the nation's first casino strip club, featuring scantily clad dancers.[33][34]
Bankruptcy filing
Trump Entertainment Resorts filed for bankruptcy on September 10, 2014,[35] and announced plans to close the Taj Mahal on November 13 if the casino did not get concessions from its unions.[36] A sister property, the Trump Plaza, did close in 2014.[37]
Workers from the casino marched to Mayor Don Guardian's office on the morning of November 3, 2014 to ask him to reconsider granting concessions, which the casino said were necessary to remain open. About 1,000 employees signed a petition calling on the mayor and other officials "to do everything possible" to keep the casino open. At the time, four of twelve casinos in Atlantic City had closed and Trump Taj Mahal would have been the fifth if it were to close.[38]
In filing a revised reorganization plan in a Delaware bankruptcy court, Trump Entertainment Resorts said its board had approved a shutdown of the casino by December 12, 2014. The shutdown date was later pushed back to December 20. On December 18, two days before the scheduled closure, UNITE HERE reached a deal with Trump Entertainment Resorts that saved the Taj from closing. The same day, billionaire Carl Icahn committed $20 million in financing for the Taj.[39]
In February 2016, Trump Entertainment Resorts exited bankruptcy and became a subsidiary of Icahn Enterprises. The casino retained the name "Trump Taj Mahal", though Donald Trump no longer held any ownership stake.[40] In April, another Icahn affiliate, Tropicana Entertainment, took over the property under a management agreement.[41][42] Icahn also stated he would withhold a planned $100-million investment into the property if New Jersey approved casinos in the northern region of the state.[43]
On Monday, October 10, 2016, the Trump Taj Mahal Hotel and Casino was shut down.[44] After the closing on that date, one UNITE HERE leader raised the possibility that the casino would remain closed over the winter but will reopen in Spring 2017 as a non-union facility, an attempt that he said would try to prompt a union boycott.[45] On March 1, 2017, Hard Rock International announced plans to spend $300 million to purchase the resort and renovate it.[46][47] It re-opened as the Hard Rock Hotel & Casino Atlantic City on June 27, 2018.[1]
Labor disputes
On November 14, 2014, Trump Entertainment Resorts announced that the casino would shut down in December unless its main union, UNITE HERE, dropped its appeal of a court-ordered cost-savings package, which had effectively cancelled the workers' health insurance and pension coverage.[48] However, it was revealed that the closing was to happen because it had not received the state and local tax breaks it sought.[49]
On October 10, 2016, Trump Taj Mahal Hotel and Casino was shut down amidst chaos of casino workers on strike, though Hard Rock Cafe remained open.[50]
On June 15, 2022, UNITE HERE union members voted overwhelming in favor of a strike if their agreement is not made by July 3. UNITE HERE Local 54, which represents workers at the casino as well as other casinos in Atlantic City demanded a raise in wages to help cover financial setbacks from the pandemic and increases in living costs.[51][52]
Hard Rock: 2018–present
On March 1, 2017, Hard Rock International announced its purchase of the Trump Taj Mahal property, and officially reopened as the Hard Rock Hotel and Casino Atlantic City,[3] on June 27, 2018.[1]
In November 2018, the Hard Rock announced a plan to launch both online and retail sportsbooks in 2019.[53]
In January 2019, the Hard Rock launched its online sportsbook, making it the 10th sportsbook app in New Jersey.[54]
In January 2020, Scores Nightclub officially closed down. One month later, in February 2020, Robert's Steakhouse closed.
Money laundering
Over its years of operation from 1990 to 2016, Trump Taj Mahal was, according to National Public Radio business correspondent, Jim Zarroli, "repeatedly cited for having inadequate money-laundering controls, not an unusual charge in the gaming business".[55]
In February 2015, the U.S. Department of the Treasury'sFinancial Crimes Enforcement Network settled an investigation of Trump Taj Mahal with the assessment of a $10 million civil fine for "significant and long-standing money laundering violations" which were described as "willful and repeated" contraventions of the record-keeping and reporting requirements of the Bank Secrecy Act.[56][57] It was the highest penalty ever levied by the U.S. Federal Government against a casino.[58]
The casino agreed to periodic external audits to comply with anti-money laundering statutes,[57] and admitted to multiple violations as part of its settlement.[59] The U.S. Treasury made note of casino violations dating back to 1998, when Trump Taj Mahal paid a $477,700 fine for violating currency transaction requirements,[29] as well as violations in 2003, 2010, and in 2012, for which the company was "repeatedly warned". Trump Taj Mahal was "far from meeting" standards required to protect the U.S. financial system "from exploitation from criminals, terrorists, and other bad actors", the Treasury said in a press release.[57]
A 218-page U.S. Senate Subcommittee report, "Asian Organized Crime: the New International Criminal", released in 1992 linked Trump's businesses to Asian organized crime.[61]
The Senate subcommittee named Danny Sau Keung Leung, who had been Trump Taj Mahal's vice president of foreign marketing since 2000, as an associate of the Hong Kong-based organized crime group 14K Triad[62] linked to "murders, extortions and heroin smuggling".[63] Leung worked at Trump Taj Mahal from 1990 to 1995.[63] He was "known by law enforcement to be linked to organized crime syndicates"[64] and was investigated by the New Jersey Casino Control Commission in 1995 with hearings in Atlantic City regarding his "background and character".[63] "Mentions of Trump businesses" were "sprinkled throughout the 1992 Senate report on "Asian organized crime in the United States".[64] "Crime bosses who ran the Chinatownbus system put together trips to Trump businesses in Atlantic City. [O]ther people with links to organized crime booked shows at Trump venues and in 1987, one was indicted on a charge of providing kickbacks to executives at Trump Castle."[64] According to an Internal Revenue Service report cited in a 2016 Politifact article by Linda Qui,[62] Trump also worked closely with other members and associates of organized criminal enterprises, including Danny Leung, Felix Sater, Salvatore Testa, and Kenneth Shapiro".[62][65]:5 In 1984, Canadian police had identified Leung as "a major player in Toronto organized crime", yet in 1989, the New Jersey Casino Control Commission granted him the casino "key license reserved for executives"[63] and he began working for Trump Taj Mahal in 1990.[63] At the New Jersey Casino Control Commission hearing in 1994, Trump sent Taj President Dennis Gomes to "testify on Leung's behalf at the hearing New Jersey Casino Control Commission. In spite of an objection of the Division of Gaming Enforcement and the testimony of Canadian police, his casino key license was renewed. "Leung's lawyer, Guy Michael said, that the criminal allegations were "absolutely untrue. In August 2013, Leung requested to be placed on the Casino Key Employee Inactive List in August 2013 "in lieu of complying with the resubmission process".[66]:20
Shooting incidents
On May 27, 2009, Ray Kot, a casino supervisor for the former Taj Mahal, was shot and killed while working, by Mark Magee of Norristown, Pennsylvania. Magee claimed that he killed Kot because all "casinos cheat gamblers".[67] On August 11, 2010, Magee was sentenced to 30 years without parole,[68] "The Ray Kot Memorial Park" was dedicated on October 16, 2009.[69]
On September 18, 2011, a man was shot dead and a woman was wounded during an apparent carjacking inside the parking garage of the casino. The man, 28-year-old Sunil Rattu, and the woman, 24-year-old Radha Ghetia, were held up as they left the casino, and then forced to drive to a nearby alley where Rattu was shot dead, while Ghetia was shot in the upper part of her body. Ghetia was treated for her injuries and later recovered.[70] Just days later, three Camden men were taken into custody; two of whom admitted to the crime and took plea bargains with the county attorneys office, one sentence of 40 and the other one for 47 years.[71]
On March 24, 2016, three teenagers attending a party in a hotel room on the forty-seventh floor were shot. Seven suspects were arrested in connection with the incident,[72] which was later described as "gang related".[73]
Gallery
The Trump Taj Mahal, as seen from the boardwalk
The Trump Taj Mahal, as seen from the boardwalk
The Taj Mahal, as seen from the Fairfield Resorts
The Trump Taj Mahal, as seen from just beyond Pacific Avenue
Hard Rock Cafe, Inc. is a chain of theme bar-restaurants, memorabilia shops, casinos and museums founded in 1971 by Isaac Tigrett and Peter Morton in London. In 1979, the cafe began covering its walls with rock and roll memorabilia, a tradition which expanded to others in the chain. In 2007, Hard Rock Cafe International (USA), Inc. was sold to the Seminole Tribe of Florida and was headquartered in Orlando, Florida, until April 2018, when the corporate offices were relocated to Davie, Florida. As of July 2018, Hard Rock International has venues in 74 countries, including 172 bar or cafe-restaurants, 37 hotels, and four casinos.
The Taj Mahal is a mausoleum in Agra, India, built by Mughal Emperor Shah Jahan.
Trump Entertainment Resorts, Inc. was a gambling and hospitality company. The company previously owned and operated the now-demolished Trump Plaza and Trump World's Fair, the now-closed Trump Marina, Trump Casino & Hotel in Gary, Indiana, Trump 29 in Coachella, California, and Trump Taj Mahal in Atlantic City. It was founded in 1995 as Trump Hotels & Casino Resorts by Donald Trump, who after 2004 held only a minority ownership. The company filed for bankruptcy in 2004, 2009 and 2014. It became a subsidiary of Icahn Enterprises in 2016. Since then, all of the company's properties have been closed and sold.
The Tropicana Atlantic City, often referred to as The Trop, is a resort, casino hotel located on the beach and Boardwalk in Atlantic City, New Jersey. It is owned by Gaming and Leisure Properties and operated by Caesars Entertainment, and is the third largest hotel in New Jersey, with just under 2,400 guest rooms and the 200,000-square-foot shopping and entertainment complex, The Quarter. It has over 30 restaurants, 30 shops, 20 bars and lounges, 4 pools, the Tropicana Showroom, multiple spas, and an IMAX Theatre. In 2016, Tropicana completed over $200 million in renovations and additions, including a Multimedia Light and Sound Show, the addition of AtlantiCare LifeCenter Fitness, Garces restaurants, renovations to over 900 hotel rooms, and casino floor but Tropicana will continue investing. The Tropicana is the largest resort and casino on the boardwalk, with 2,364 rooms, 3,000 slot machines, 30 restaurants, and 30 shops, along with two 2,500-space parking garages, totaling over 5,000 parking spaces. In 2021-2023 Tropicana is said to complete renovations through these years, the renovations will include renovations to all 604 West Tower rooms, modernized elevators and escalators, pool enhancements, gaming space enhancements, and more undisclosed renovation projects.
Icahn Enterprises L.P. is an American publicly traded master limited partnership and conglomerate headquartered at Milton Tower in Sunny Isles Beach, Florida. The company has investments in various industries including energy, automotive, food packaging, metals, real estate and home fashion. The company is controlled by Carl Icahn, who owns 86 percent of it.
Hard Rock Live at Etess Arena, formerly known as Etess Arena, is a multi-purpose arena in Atlantic City, New Jersey located at the Hard Rock Hotel & Casino Atlantic City. Originally opening in April 1990 as a part of the Trump Taj Mahal, the arena seats over 5,000 for music and sporting events.
Golden Nugget Atlantic City is a hotel, casino, and marina located in Atlantic City, New Jersey. Having been opened in 1985 as Trump's Castle, it was renamed Trump Marina in 1997. Landry's, Inc. purchased the casino from Trump Entertainment Resorts in February 2011, and the sale was approved in late May. Landry's took control of the property on May 23, 2011 and renamed it the Golden Nugget Atlantic City.
Resorts Casino Hotel is a hotel and casino in Atlantic City, New Jersey. Resorts was the first casino hotel in Atlantic City, becoming the first legal casino outside of Nevada in the United States, when it opened on May 26, 1978. The resort completed an expansion in 2004, adding the 27-story Rendezvous Tower, and underwent renovations in 2011, converting the resort to a Roaring Twenties theme.
Trump Plaza was a hotel and casino on the Boardwalk in Atlantic City, New Jersey, owned by Trump Entertainment Resorts. Designed by architect Alan Lapidus, it operated from May 14, 1984, until September 16, 2014.
Taj Mahal Hotel may refer to:
Sands Atlantic City was a casino and hotel that operated from August 13, 1980 until November 11, 2006 in Atlantic City, New Jersey. It was formerly known as the Brighton Hotel & Casino. It consisted of a 21-story hotel tower with 532 rooms and a 5-story podium housing the 57,045 sq ft (5,299.7 m2) casino, restaurants, shops, and various other amenities. It was adjacent to The Claridge Hotel and its parking garage was adjacent to the Madison Hotel.
Tropicana Entertainment Inc. was a publicly traded gaming company that owned and operated casinos and resorts in Indiana, Louisiana, Mississippi, Nevada, Missouri, New Jersey. and Aruba. Tropicana properties collectively had approximately 5,500 rooms, 8,000 slot positions and 270 table games. The company was based in Spring Valley, Nevada, and was majority-owned by Icahn Enterprises. The company was acquired in 2018 by Eldorado Resorts and Gaming and Leisure Properties for $1.85 billion.
The Showboat Resort Atlantic City is a resort hotel and former casino in Atlantic City, New Jersey. The Showboat opened as a casino hotel in 1987 and closed in 2014; the hotel reopened in 2016. It is owned by developer Bart Blatstein.
A strategic bankruptcy may occur when an otherwise solvent company makes use of the bankruptcy laws for some specific business purpose other than simple inability to pay debts.
Donald Trump began his career as a businessman at his father's real estate company, Trump Management, which he later renamed the Trump Organization. He expanded its business to Manhattan, where his father's financial and political backing enabled him to do his first deals, demolishing and renovating landmark buildings. Trump entered various businesses that did not require capital funding, including licensing his name to lodging and golf course enterprises around the world. Building on his public persona in the New York tabloid press, he later starred in the reality TV show The Apprentice.
Resorts International was a hotel and casino company. From its origins as a paint company, it moved into the resort business in the 1960s with the development of Paradise Island in the Bahamas, and then expanded to Atlantic City, New Jersey with the opening of Resorts Casino Hotel in 1978. After the death of its longtime chairman, James Crosby, in 1986, the company was briefly controlled by Donald Trump, before being acquired by Merv Griffin in 1988. It was acquired by Sun International in 1996.
James F. Allen is an American businessman who is the chairman of Hard Rock International and chief executive officer of Seminole Gaming. Previously, he served as vice president of operations of The Trump Organization and senior vice president of Sol Kerzner's company, Sun International.
↑ Richard Koenig (April 19, 1988). "Trump, man of glitz, is forced to cut back at Taj Mahal casino". The Wall Street Journal. ProQuest398124046.–viaProQuest (subscription required)
↑ "Resorts International receives takeover offer to rival Trump's". Sun-Sentinel. Fort Lauderdale, Florida. March 25, 1987. ProQuest389592810.–viaProQuest (subscription required)
↑ Eileen White Read; Richard Koenig (March 22, 1988). "Merv Griffin sues to block Trump offer for Resorts, says he may boost his own". The Wall Street Journal. ProQuest398029238.–viaProQuest (subscription required)
↑ Beatrice E. Garcia (November 16, 1988). "Trump completes the sale of Resorts to Merv Griffin". The Wall Street Journal. ProQuest398072552.–viaProQuest (subscription required)
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