Trump’s Taj Mahal Casino opened in 1990, and it was his third casino, this time the cost was $1 billion, It is also part of the Atlantic City casino, and today the Taj Mahal Casino is under new ownership. At the start, it was called the eighth wonder of the world, and Trump’s new casino had a 42-story tower. It was the tallest building in New Jersey, while it was also the largest casino in the world. But by the 10th of October 2016, the Taj Mahal Casino of Donald Trump closed, this time for the final time. A deal was reached between Trump and Carl Icahn, the investor and the casino re-opened.
Trump Wanted to Make Everything Great Again in Atlantic City
So, if you thought by now, Donald Trump would walk away from it all you’re wrong. In 1991 the Trump World’s Fair became his fourth Atlantic City casino. At that stage the New Jersey Casino Control Commission became concerned as the Taj Mahal casino of Trump, the costs were escalating, and it was in breach with the operating license. This started the careful monitoring of the performance financially of all the casinos belonging to Trump by the regulators. Trump, on the other hand, assured everyone that he could and would revise the expenses.
Only Way to Make It Work is a Daily Turn-Over of $1.3 Million.
But within only a few months he issued junk bonds of $675 million with an interest rate of 14%. The debt on the Taj Mahal by then exceeded $820 million, and analysts predicted that it needs a daily turnover of $1.3 million to make some of the interest payments.
Doomed from The Start
What many did not know or expect was just how early the projects were already doomed, and the primary interest’s payment was already skipped in November 1990, and that included that of the Castle. This means Donald Trump had trouble making these payments right from the start, on the Taj Mahal and his other casinos. What was also evident right from the beginning is that the Taj Mahal was cannibalising the Plaza and the Castle.
Everything Had an Impact on Trump’s Casinos
The end was partly fuelled by the economic recession and the slowdown in gambling revenues in the 1990s. Trump’s casinos suffered significantly from both the prementioned factors and so made his Manhattan property investments. At some stage, the total debt of the casinos reached $3.4 billion. Regulators could see that it would come to a complete collapse financially for Trump. His lenders insisted on business plans, and Trump’s ventures were failing one after the other. Only one year after the opening of the Taj Mahal, Donald Trump had to appear in the bankruptcy court, a year later in 1992 it was the Castle and Plaza. Trump was in personal debt of $13.5 million he borrowed money from casinos to pay bankers and in 1998, the losses were at $40 million it continued until he reached a financial crisis in 2009. Trump entered bankruptcy again in 2014 and closed Trump Plaza.