Tuesday, July 15, 2014

Donald Trump says to expect more casino closings



ATLANTIC CITY - With the Trump Plaza Hotel & Casino's expected closing, Donald Trump, whose name is emblazoned on the casino and who once owned three of the gambling palaces here, said he can't help but feel bad for the resort he helped build.

In an interview Monday, Trump also predicted that an oversaturation of casinos would mean more closings in other places, including the Philadelphia area.

Trump endured multiple bankruptcies as head of Trump Entertainment Resorts Inc., and he and his name will always be linked with Atlantic City even if his share of the casinos is now only about 10 percent.

Trump Plaza's owners issued layoff notices to 1,600 employees Monday and said the casino would close Sept. 16. The closing would leave just one Trump-brand casino in Atlantic City, the Trump Taj Mahal. The former Trump Marina was sold in spring 2011 and became the Golden Nugget Atlantic City Casino Hotel under restaurant-chain owner Landry's Inc. of Houston.

"I'm very sad for Atlantic City. I spent many years there, as you know," Trump said from New York City less than two hours after Trump Plaza employees were issued layoff notices. "But I have not been involved for many years.

"I have nothing to do" with Trump Plaza's closing, he said. "Different people own it."

At the beginning of 2014, Atlantic City had 12 casinos. The Atlantic Club closed in mid-January, and two others - Revel and Showboat - have threatened to close, both by summer's end, if they do not find buyers. Showboat issued layoff notices about two weeks ago to its 2,100 workers.

"I feel badly, but Atlantic City is a different place now," Trump said. "What's happening in Atlantic City is happening all over the country. The United States is becoming one big casino.

"Atlantic City is getting clobbered. Seventy-five percent of the casinos in Atlantic City are bankrupt or going through bankruptcy. The other 25 percent are on respirator. This is going to happen in [the Philadelphia area] and Pennsylvania, too, you watch.

State governments think casino revenue is "the panacea, but it's not the panacea when everyone is doing it."

Trump began building his casino empire here with Trump Plaza, on the 50-yard line of the Boardwalk, in May 1984. His second casino, the Trump Marina, opened in June 1985 in the Marina District.

Trump's crown jewel and flagship, the billion-dollar Taj Mahal, opened on the northern end of the Boardwalk on April 2, 1990, as the most expensive casino ever built in Atlantic City.

Source: Philly.com

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