Forbes calls it the Trump Palace Casino that wasn’t. Others say Donald Trump’s Casinos could not make Atlantic City great again. Calvin Ayre calls it the rise and fall of the casino empire of Trump and other just revers to it as ghost hotels.
Why Could Trump Not Make Atlantic City Casino Great Again?
Regardless of what is happening, Atlantic City is on the Atlantic coast of New Jersey and what it is famous for is a large number of casinos along the iconic boardwalk. The city dates back to the 1800s when it started as a health resort. Today it is much closer to a gambling resort with its many high-rising hotels, casinos and nightclubs. It is this location that was selected by Donald Trump, the 45th US president, to build his casinos. To the world, he is a property tycoon, but President Trump is now a newcomer to challenges that ultimately turned into bankruptcies.
What Was Part of the Rise& Fall of Trump’s Atlantic City
The overall feel is that if Trump can’t make it, who can? But before you come to such a conclusion, it is essential to understand and examine the causes of the challenges. It might give you some insight into why it ended in bankruptcy. Even Donald Trump said in his presidential campaign that his Atlantic City investments yielded quite a bit of investment for him and there is no doubt that he did make tons of money from it.
Within a record time-period, Donald Trump had a massive influence in Atlantic City and the casinos he owned accounted for one-third of the gambling revenues in the city. Trump employed more than 8,000 people at the start of his casino empire with the bucks he borrowed at super-high interest rates. If you take all that into account, the businesses rarely had a chance to succeed according to the New York Time. As expected, it all ends in court, and Trump Plaza Hotel and Casino faced bankruptcy.
Donald Trump’s First Fall in the Casino Sphere
The Trump Plaza Hotel and Casino was his first venture and the casino opened in 1980 after he gained control of the boardwalk’s prime spot. Trump could not get financing for his plan to build the casino; what he then did was to forge a partnership with Harrah’s Entertainment. This offered Trump a $220 million advance to complete his casino project, and the management fee was $24 million. The agreement was that half of the profits go to Trump. The Harrah’s opened in 1984 in Trump Plaza, and by 1986 Harrah’s sold its stake for $220 million in Trump Plaza back to Trump, today it is closed.
The Castle of Donald Trump
After he had Trump Plaza on the go, Donald Trump, when ahead and bought the almost completed Hilton Casino, the price tag was $320 million. He called it Trump Castle and his company issued bonds worth $352 million to complete construction. He added $32 million, and by 1985 the casino opened, which competed against the Harrah’s Marina. Trump’s castles were renamed later as the Trump Marina, and today it is known as the Golden Nugget.