November 3, 2016

Closure Slashes Value of Trump Taj Mahal

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The value of the Trump Taj Mahal almost halved after closing, according to the latest financial statement from its owner Icahn Enterprises.

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The casino, which was opened to big fanfare in 1990 by Donald Trump, finally closed its doors to a trickle of customers in October, capping the end of a lengthy labor dispute with Local 54 UniteHere.

The holding company of billionaire businessman Carl Icahn recorded a charge of $92 million for closing the Taj Mahal, according to the company’s Thursday third-quarter report. The same statement shows that Trump Entertainment, the unit that owns the Trump Taj Mahal and the similarly shuttered Trump Plaza casino, is now valued at $118 million, down from $208 million at the end of the second quarter.

The future of the two sites is not clear. Trump Plaza has now been empty for some years. An executive from Tropicana, which is also run by Icahn Enterprises, last month said there might be some possibility of reopening Taj Mahal next year Рbut only if the New Jersey legislature shelves a bill that would prevent casino owners from holding a casino license for a property they have closed.

Tropicana – which reached an agreement earlier this year with Local 54 for the same benefits and salary package that the Taj workers went on strike for – has seen its revenue climb since the Taj went on strike.

About 3,000 jobs disappeared when the Taj Mahal closed, reducing Atlantic City’s casinos to seven from 11 in 2014. Earlier today, The Press of Atlantic City reported that some of the Taj Mahal’s executives were hired by TEN, the casino formerly known as Revel that closed in 2014 and is set to reopen next year.

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