The Trump Taj Mahal is officially out of Chapter 11 bankruptcy and in the clutches of billionaire raider that is corporate Icahn, as a wholly owned subsidiary of Icahn Enterprises.
Billionaire Carl Icahn has rescued the Trump Taj Mahal from bankruptcy, but still faces opposition from the unions. The deal severs Donald Trump’s final tie with the AC casino industry, although his name will remain within the deal.
Plus in the week that is very New Jersey Governor Chris Christie, having bowed out from the presidential race himself, pledged his help for Donald Trump for the GOP nomination, Icahn’s takeover represents the final chapter in Donald Trump’s Atlantic City and gaming history.
Trump got out of Atlantic City in 2009, selling the thing that was kept associated with Trump Entertainment casino empire he built-in the eighties and nineties to a group of hedge funds and corporate bond holders.
He has already established nothing in connection with the management of the Taj, or its now sister that is defunct, the Trump Plaza, ever since. Nevertheless, the arch negotiator were able to retain a 10 % stake in Trump Entertainment, in substitution for allowing the company to retain the Trump brand name.
In 2014, Trump was incensed by exactly what he saw as Trump Entertainment’s mismanagement of the brand and litigated to have his name eliminated from the casino. But after Icahn’s intervention, he relented, and the true title will remain.
Trump Ties Severed
That 10 percent stake is now gone, severing Trump’s last ties with the city. And while his name may still be emblazoned in lights throughout the front regarding the building, this is now very much the Carl Icahn show.
The Taj is the second property Icahn now owns in Atlantic City, having also rescued the Tropicana from bankruptcy in 2009.
‘The Taj is one of Atlantic City’s signature properties,’ Icahn told the Associated Press. ‘Although both Atlantic City plus the Taj have experienced a few years that are tough today marks the turnaround,’ he added.
‘Just a years that are few, Tropicana was in bankruptcy and its particular fate uncertain, but since emerging in 2010, we have turned that property around and contains become certainly one of Atlantic City’s few success stories. I will be confident we can and will do the same for the Taj,’ stated Icahn.
State regarding the Union
One group that’ll not be applauding, but, is the resort’s casino workers’ union Unite 54, which has yet to reach a contract agreement with Icahn.
The casino almost closed many times in 2014. Icahn, who had bought all the Taj’s $286 million debt, said over and invest, provided he was granted several concessions by the city that he was willing to take it. Among those was the best to scrap health pension and insurance benefits for his casino workers.
As such, union demonstrations have become a familiar sight outside the property over the past 18 months.
North Jersey Casino Bill Not Sitting Well with Atlantic City Residents and Businesses
Just say no to North Jersey casino expansion: Senator Jim Whelan, who led the clamor of voices opposed to North Jersey casinos at a hearing that is legislative Trenton on Monday. (Image: dailykos.com)
Opposition to North Jersey casino expansion collected in Trenton on Monday to denounce lawmakers’ plans to tear up Atlantic City’s longstanding casino monopoly within the state.
Atlantic City business owners and concerned residents joined up with politicians such as for instance State Senator Jim Whelan (D-Atlantic) in condemning the nj-new Jersey bill at a public hearing of the Senate Budget and Appropriations Committee yesterday.
Among the bill’s criticisms was a tremendously real fear that the proposal could destroy the resort town, that has currently lost a quarter of its casinos and with them some 8,000 jobs, throughout the past couple of years.
Legislators want to allow the creation of two licenses in northern New Jersey, hoping they will attract hordes of gamblers from this new York metropolitan area, which in turn would bolster the state’s faltering casino industry.
Since this would require an amendment towards the state constitution, the matter would go to a public ballot apt to be voted on in November. But the bill would have to be authorized by three-fifths of both chambers in order for this to occur.
Should the bill become law, Atlantic City’s current casino licensees would be offered the opportunity to bid for the North Jersey licenses first. If they turn out to be uninterested, the field would then be opened to operators from outside the state.
Politicians have stated Atlantic City will receive up to $200 million in compensation from taxes on the new casinos, but taxation levels have yet become determined, which alarms many in the resort city.
Joe Kelly, president of Greater Atlantic City Chamber, said he failed to understand how the bill could possibly move forward without these numbers.
‘ We don’t know what kind of revenue will be returned to Atlantic City, we do not know whom it’s going to be returned to or how it will work,’ he complained.
He also said he believed the proposal would result in two more casino closures into the city, and the loss that is potential of more jobs.
Senator Whelan warned that the continuing state was playing with fire by expanding into the north and that the area will never be immune from the issue of saturation.
‘We’re perhaps not going to [see] casinos in north Jersey have actually a 20-25 monopoly,’ he said year. ‘It are going to be a matter of years before New York City has casinos in Manhattan or within the Bronx. What Atlantic City is experiencing now, north Jersey will experience at that time.’
Another hearing that is public due on March 7 in the Assembly, after which the bill will be voted on in both houses.
Florida Gambling Expansion Bill Passes House Committee, Odds of Passage Remain Slim
Florida gambling expansion, maybe: State Rep. Jose Diaz is leading the fight to start Florida’s gaming venues, however the handle various parties, including the Seminole Tribe and pari-mutuel interests, has a way that is long go before being finalized into law. (Image: floridapolitics.com)
Florida gambling expansion bill HB 7109 scored a much-needed victory on Monday, after the state’s home Finance and Tax Committee voted 12-5 in favor of moving the legislation towards the chamber’s floor.
Introduced by Jose Diaz (R-District 116), HB 7109 would overhaul their state’s current legislation by expanding gambling through the state. It would also authorize pari-mutuels to supply casino games without continuing to host horse or greyhound racing, legalize daily fantasy sports (DFS), and reach new terms with all the state’s Seminole Tribe.
However, with a handful of events all lobbying for their own self-interests, from lawmakers in Tallahassee to racetracks towards the Indian tribe, the intricate bill that is 122-page certainly not a certain thing for passage.
Against All Odds
The predominant issue facing the State of Florida is dealing with the powerful Seminole Tribe and its five video gaming facilities. In December, Governor Rick Scott (R) reached a deal with tribal leaders, handing over the exclusive legal rights to offer craps and roulette in exchange for a guaranteed $3 billion for the Sunshine State’s coffers within the next seven years.
Competing interests from the racing contingent said maybe not so fast, and have successfully pressured lawmakers into supporting the Scott-Seminole deal.
‘It’s very hard to negotiate a deal when every part threatens them what they want,’ a frustrated Diaz said Monday if you don’t give.
Diaz says their House that is new bill need the Seminoles to sign down in the provisions, and time is of the essence. March 11 could be the final day of the Florida Legislature’s 2016 Regular Session.
The Seminole compact with Florida expired in 2015, but casinos on reservation land continue to offer gambling and continue to send checks to the state government.
Reaching a deal now would be advantageous to both sides, as a new pact would save 3,500 jobs, and based on Seminole Chairman James Billie, create thousands more and generate upwards of $10 billion for the state by 2036.
In what is perhaps an olive branch to those opposed to expanded gambling, Diaz’s law would require a voter referendum moving forward for almost any future gambling expansion.
Georgia Gambling Not on Its Mind
With Florida’s neighbor towards the north, Georgia wants to take the direct opposite approach to gambling than the Sunshine State. The a lot more conservative Peach State, Georgia has voted for the Republican nominee that is presidential but four times since 1964.
Georgia currently includes a continuing state lottery, it is free of any tribal, commercial, or racetrack video gaming.
And State home Speaker David Ralston (R) wants to keep it that way. Ralston has got the distinct benefit in Georgia of deciding what does and just what does not go before the House floor for consideration.
On the House Rules Commmittee voted to move House Bill 677 to the floor friday. Authored by State Rep. Ron Stephens (R-District 164), the legislation would authorize the issuance of four resort-style gambling licenses.
In line with the Atlanta Journal-Constitution, Ralston encouraged his colleagues to go to church this past weekend and reconsider any plans to vote in support of legalizing gambling in Georgia. Ralston concluded the by saying HB 677 getting a vote is something he ‘wouldn’t bet on. week’