Trump Entertainment Resorts, Inc. was a

gambling Gambling (also known as betting or gaming) is the wagering of something of value ("the stakes") on a random event with the intent of winning something else of value, where instances of strategy are discounted. Gambling thus requires three el ...

and

hospitality Hospitality is the relationship between a guest and a host, wherein the host receives the guest with some amount of goodwill, including the reception and entertainment of guests, visitors, or strangers. Louis, chevalier de Jaucourt describes ...

company. The company previously owned and operated the now-demolished Trump Plaza and

Trump World's Fair Trump World's Fair at Trump Plaza was a hotel and casino in Atlantic City, New Jersey that occupied 280 feet (85.3 m) of the Atlantic City boardwalk and was 21 floors in height. It had 500 guest rooms. It opened on April 14, 1981 as the Playboy H ...

(both in Atlantic City), the now-closed Trump Marina, Trump Casino & Hotel in

Gary, Indiana Gary is a city in Lake County, Indiana, United States. The city has been historically dominated by major industrial activity and is home to U.S. Steel's Gary Works, the largest steel mill complex in North America. Gary is located along the sou ...

, Trump 29 in Coachella, California, and

Trump Taj Mahal The Hard Rock Hotel & Casino Atlantic City (formerly Trump Taj Mahal) is a casino and hotel on the Boardwalk, owned by Hard Rock International, in Atlantic City, New Jersey. The casino, originally known as the ''Trump Taj Mahal,'' was inaugu ...

in Atlantic City. It was founded in 1995 as Trump Hotels & Casino Resorts by

Donald Trump Donald John Trump (born June 14, 1946) is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021. Trump graduated from the Wharton School of the University of P ...

, who after 2004 held only a minority ownership. The company filed for bankruptcy in 2004, 2009 and 2014. It became a subsidiary of

Icahn Enterprises Icahn Enterprises L.P. is an American conglomerate headquartered at Milton Tower in Sunny Isles Beach, Florida. The company has investments in various industries including energy, automotive, food packaging, metals, real estate and home fashion. ...

in 2016. Since then, all of the company's properties have been closed and sold.

History

The beginning

Donald Trump began purchasing properties along the Atlantic City boardwalk in the early 1980s and received a casino license from the

New Jersey Casino Control Commission The Casino Control Commission is a New Jersey state governmental agency that was founded in 1977 as the state's Gaming Control Board, responsible under the Casino Control Act for licensing casinos in Atlantic City. The commission also issues lic ...

(CCC) on March 15, 1982. He had planned to build his own casino on the boardwalk, but was stalled on the project when Mike Rose, then CEO of

Holiday Inn Holiday Inn is an American chain of hotels based in Atlanta, Georgia. and a brand of IHG Hotels & Resorts. The chain was founded in 1952 by Kemmons Wilson, who opened the first location in Memphis, Tennessee that year. The chain was a division ...

and

Harrah's Harrah's Entertainment (later named Caesars Entertainment Corporation, previously The Promus Companies) was an American casino and hotel company founded in Reno, Nevada, and based in Paradise, Nevada, that operated over 50 properties and seven go ...

approached him to manage construction of a Holiday Inn Casino-Hotel. It opened in May 1984 and two years later Trump bought out Holiday Inn's shares in the property and renamed it the

Trump Plaza Hotel and Casino Trump Plaza was a hotel and casino on the Boardwalk in Atlantic City, New Jersey, owned by Trump Entertainment Resorts. Designed by architect Alan Lapidus, it operated from May 15, 1984 until September 16, 2014. History The beginning The ...

. In 1985, Trump purchased the nearly-complete Atlantic City Hilton hotel and casino property at the Atlantic marina from

Hilton Hotels Hilton Hotels & Resorts (formerly known as Hilton Hotels) is a global brand of full-service hotels and resorts and the flagship brand of American multinational hospitality company Hilton. The original company was founded by Conrad Hilton. As ...

for $325 million. The hotel chain sold the property after its application for a gaming license was turned down by the CCC. Trump originally opened the property as Trump's Castle Hotel Casino, and later renamed it the Trump Marina. In 1988, Trump purchased the unfinished Taj Mahal property from

Resorts International Resorts International was a hotel and casino company. From its origins as a paint company, it moved into the resort business in the 1960s with the development of Paradise Island in the Bahamas, and then expanded to Atlantic City, New Jersey with ...

for $230 million after negotiations with

Merv Griffin Mervyn Edward Griffin Jr. (July 6, 1925 – August 12, 2007) was an American television show host and media mogul. He began his career as a radio and big band singer, later appearing in film and on Broadway. From 1965 to 1986 he hosted his own t ...

in which the two men divided the assets of the failing company. The casino, at the time the largest in Atlantic City, would eventually cost almost $1 billion by the time it opened in 1990. Trump completed the project using

junk bonds In finance, a high-yield bond (non-investment-grade bond, speculative-grade bond, or junk bond) is a bond that is rated below investment grade by credit rating agencies. These bonds have a higher risk of default or other adverse credit events ...

, a decision that hurt the company afterward as the gaming industry struggled in a recession and interest rates became unmanageable. The company was shaken by the deaths of three key executives in an October 10, 1989 helicopter crash in northern New Jersey while they were returning from a New York press conference promoting an upcoming Atlantic City boxing event. The men were Steven F. Hyde, the CEO of Trump's casino operations, Mark Grossinger Etess, the president and chief operating officer of the Taj Mahal, and Trump Plaza executive vice president Jonathan Benanav. In 1995, Trump established Trump Hotels and Casino Resorts (THCR) as a publicly traded company, granting it ownership of the Trump Plaza and the under-development

Trump Casino Trump Entertainment Resorts, Inc. was a gambling and hospitality company. The company previously owned and operated the now-demolished Trump Plaza and Trump World's Fair (both in Atlantic City), the now-closed Trump Marina, Trump Casino & Hotel ...

. The following year, THCR bought the Trump Taj Mahal at a valuation of $890 million, and bought the Trump Castle from Trump for $486 million (including $355 million in assumed debt). In 1996, the company opened

, a casino adjunct to the Trump Plaza. The World's Fair was closed in 1999, with plans to replace it with a larger resort. In 1997, THCR was one of eleven applicants for three casino licenses available in

Detroit Detroit ( , ; , ) is the largest city in the U.S. state of Michigan. It is also the largest U.S. city on the United States–Canada border, and the seat of government of Wayne County. The City of Detroit had a population of 639,111 at t ...

, with a $542-million proposal for the Trump Motor City Hotel Casino, in partnership with

Mel Farr Melvin Farr (November 3, 1944 – August 3, 2015) was an American professional football player and businessman. A native of Beaumont, Texas, Farr played college football as a halfback on the 1965 and 1966 UCLA Bruins football teams that were ...

. The bid was ultimately dropped from consideration because of Mayor

Dennis Archer Dennis Wayne Archer (born January 1, 1942) is an American lawyer, jurist and former politician from Michigan. A Democrat, Archer served as Justice on the Michigan Supreme Court and as mayor of Detroit. He later served as president of the Amer ...

's doubts about the company's financial condition. In 1998, THCR business consultants spent at least $68,000 on a trip to

Cuba Cuba ( , ), officially the Republic of Cuba ( es, República de Cuba, links=no ), is an island country comprising the island of Cuba, as well as Isla de la Juventud and several minor archipelagos. Cuba is located where the northern Caribbea ...

in violation to the

United States embargo against Cuba The United States embargo against Cuba prevents American businesses, and businesses organized under U.S. law or majority-owned by American citizens, from conducting trade with Cuban interests. It is the most enduring trade embargo in modern his ...

. According to a report by ''

Newsweek ''Newsweek'' is an American weekly online news magazine co-owned 50 percent each by Dev Pragad, its president and CEO, and Johnathan Davis, who has no operational role at ''Newsweek''. Founded as a weekly print magazine in 1933, it was widely ...

'', the consulting firm Seven Arrows Investment and Development instructed THCR on how to evade the embargo by linking the money to a charitable effort. In 1999, THCR agreed to purchase the Flamingo Hilton Casino Kansas City for $15 million, but the deal fell through when Missouri gaming regulators did not approve the company's gaming license by a contractual deadline. THCR entered a management agreement in 2000 to operate the

Spotlight 29 Casino Spotlight 29 Casino is an Indian casino in Coachella, California, owned and operated by the Twenty-Nine Palms Band of Mission Indians of California. The casino is 250,000 square feet, with 1,600 slot machines and 22 table games. Amenities includ ...

, an

Indian casino Native American gaming comprises casinos, bingo halls, and other gambling operations on Indian reservations or other tribal lands in the United States. Because these areas have tribal sovereignty, states have limited ability to forbid gambling t ...

in Coachella, California.

Financial troubles

Trump Entertainment Resorts and its predecessors have filed for

Chapter 11 bankruptcy protection Chapter 11 of the United States Bankruptcy Code ( Title 11 of the United States Code) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy, is available to every business, whet ...

four times, in 1991, following construction of the $1-billion Trump Taj Mahal, and in 2004, 2009 and 2014. In 2004, Trump Hotels & Casino Resorts explored various options for restructuring its debt, amid speculation that it might file for bankruptcy. A possible arrangement with

Credit Suisse First Boston Credit Suisse First Boston (also known as CSFB and CS First Boston) is the investment banking affiliate of Credit Suisse headquartered in New York. The company was created by the merger of First Boston Corporation and Credit Suisse Group in 1988 ...

was not completed because the bondholders rejected it. On October 21, 2004, the company announced a preliminary agreement with its investors. Trump, who had been the majority owner, would reduce his stock ownership from 56 to 27 percent. Bondholders would surrender some of their debt in exchange for stock. On October 27, the company announced that

Morgan Stanley Morgan Stanley is an American multinational investment management and financial services company headquartered at 1585 Broadway in Midtown Manhattan, New York City. With offices in more than 41 countries and more than 75,000 employees, the fir ...

would be the joint lead arranger for a $500 million financing as part of the restructuring plan. On November 21, the company filed for bankruptcy. Trump said the filing was "really just a technical thing" as the best way to implement the restructuring plan. The plan was submitted to the

bankruptcy court United States bankruptcy courts are courts created under Article I of the United States Constitution. The current system of bankruptcy courts was created by the United States Congress in 1978, effective April 1, 1984. United States bankruptcy c ...

on December 16, 2004. After the 2004 bankruptcy, Trump Hotels & Casino Resorts changed its name to Trump Entertainment Resorts (TER), and Trump ceased to play an active role in the company. In 2005, the company's involvement in the Spotlight 29 Casino ended, as the tribe bought out the casino management agreement for $6 million. Later that year, TER sold its Indiana casino to

The Majestic Star Casino, LLC The Majestic Star Casino, LLC was a gaming holding company founded in Gary, Indiana by Don H. Barden and was based in Las Vegas, Nevada. History The company was formed on December 8, 1993. It opened the Majestic Star Casino in Gary, Indiana on ...

for $253 million. The company had also been awarded a license to build a second casino in

Orange County, Indiana Orange County is located in southern Indiana in the United States. As of 2020, its population was 19,867. The county seat is Paoli. The county has four incorporated settlements with a total population of about 8,600, as well as several small u ...

, but dropped this plan, due in part to the state's concerns about the company's viability. In 2007, the company attempted to negotiate a

buyout In finance, a buyout is an investment transaction by which the ownership equity of a company, or a majority share of the stock of the company is acquired. The acquiror thereby "buys out" the present equity holders of the target company. A buyout ...

with several public and private firms, but on July 2, it announced that it could not reach a deal, and would take itself off the market. The company planned to lay off employees in order to cut costs.

2009 bankruptcy and restructuring

The casino group filed for bankruptcy again in February 2009, owing $1.2 billion. Two sets of debt holders eventually proposed reorganization plans for the group in U.S. bankruptcy court. Trump initially made an agreement with banker and poker player

Andrew Beal Daniel Andrew Beal (born November 29, 1952) is an American banker, businessman, investor, and amateur mathematician. He is a Dallas-based businessman who accumulated wealth in real estate and banking. Born and reared in Lansing, Michigan, Beal i ...

, owner of Beal Bank, which held $500 million in the group's debt, to take over the resorts. However, citing concerns about the bank's lack of gaming experience, he dropped them in favor of hedge fund Avenue Capital Management, a plan favored by other bondholders. Beal then partnered with investor,

Carl Icahn Carl Celian Icahn (; born February 16, 1936) is an American financier. He is the founder and controlling shareholder of Icahn Enterprises, a public company and diversified conglomerate holding company based in Sunny Isles Beach. Icahn takes la ...

, who had worked on restructuring another Atlantic City casino, the

Tropicana Tropicana may refer to: Companies *Tropicana Entertainment, a former casino company that owned several Tropicana-branded casinos *Tropicana Products, a Chicago-based food company known for orange juice Hotels and nightclubs *Tropicana Casino & Re ...

. In court, Trump argued that he would fight the Icahn/Beal team if they sought to use his name and likeness on the group's properties. Instead he signed an agreement with Avenue Capital in which he would receive 5% stock in the reorganized company and another 5% in exchange for the use of his name and likeness in perpetuity. The bankruptcy court eventually sided with the Trump/Avenue partnership, favored by bond holders who believed that Trump's brand would result in a stronger company after reorganization. In 2011, TER sold the Trump Marina to

Landry's Restaurants Landry's, Inc., is an American, privately owned, multi-brand dining, hospitality, entertainment and gaming corporation headquartered in Houston, Texas. Landry's, Inc. owns and operates more than 600 restaurants, hotels, casinos and entertainmen ...

, which also operates the Golden Nugget in Las Vegas.

Post-2009 bankruptcy

In February 2013, the company agreed to sell the Trump Plaza for $20 million to the

Meruelo Group Alex Meruelo (born March 27, 1964) is a Cuban-American billionaire who holds business interests in banking, real estate, media, restaurants, food, casinos, and professional sports. He is the owner of Meruelo Group, as well as Meruelo Media, whic ...

, a California-based company whose holdings include the Grand Sierra Resort in

Reno, Nevada Reno ( ) is a city in the northwest section of the U.S. state of Nevada, along the Nevada-California border, about north from Lake Tahoe, known as "The Biggest Little City in the World". Known for its casino and tourism industry, Reno is the ...

. The proceeds would be used to pay down the company's debt to a level of $270 million. CEO Robert Griffin said TER would consider also selling the Trump Taj Mahal for the right price. However, Carl Icahn, who held the mortgage on the Trump casinos, would reject the sale of the Trump Plaza. In early August 2014, Donald Trump filed a lawsuit demanding removal of his name from the company's two casinos, because they had allegedly been allowed to fall into disrepair, in breach of the licensing agreement for Trump's name.

2014 bankruptcy

In September 2014, Trump Entertainment Resorts filed again for bankruptcy, and closed the Trump Plaza. On a motion made by union

UNITE HERE UNITE HERE is a labor union in the United States and Canada with roughly 300,000 active members. The union's members work predominantly in the hotel, food service, laundry, warehouse, and casino gaming industries. The union was formed in 2004 by ...

Local 54, relating to the bankruptcy action, the

United States Court of Appeals for the Third Circuit The United States Court of Appeals for the Third Circuit (in case citations, 3d Cir.) is a federal court with appellate jurisdiction over the district courts for the following districts: * District of Delaware * District of New Jersey * East ...

ruled in Trump Entertainment's favor on January 15, 2016 and held that Trump Entertainment could reject the continuing terms and conditions of a

collective bargaining Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights for workers. The ...

agreement with the union, an agreement that had already expired by its terms. This case was significant as it was a matter of First impression among the courts of appeal and could significantly alter the balance of power between debtor-employers and their unions. Taj Mahal Atlantic City New Jersey

The company eventually exited bankruptcy in February 2016 and became a subsidiary of

Folding of the company

On October 10, 2016, the Trump Taj Mahal, the company's last operating property, closed for the final time. Trump Entertainment continued to operate to deal with the transfer of some points on the Trump One card account. All of the websites related to the company were redirected to DonaldJTrump.com. Trump Plaza remained vacant after the company had gone defunct and its assets were acquired by Icahn Enterprises. In November 2017, it was revealed that Icahn was looking to demolish the casino, and was seeking $5.6 million in tax funds to pay for the demolition, but this caused a rift between Icahn and the local government, delaying the project. On December 14, 2018, the deadline for demolishing it officially passed, meaning Trump Plaza would remain standing through the winter. Later that month, Icahn terminated the deed restriction on the property and bought out a complicated lease, making a sale more attractive. The building was declared a hazard by the city in March 2020; demolition began that summer, and the main hotel tower was imploded on February 17, 2021. A charity auction benefited the Boys and Girls Club, with most of the money coming from Icahn after he objected to the original plan to auction off the right to press the demolition button.

Former properties

The company's properties included: * Harrah's at Trump Plaza in Atlantic City, New Jersey; formerly a 50/50 partnership with

, later wholly owned by the company and renamed the Trump Plaza. Closed on September 16, 2014; demolished February 17, 2021. * Trump 29 Casino in Coachella, California; formerly a 50/50 partnership with the

Twenty-Nine Palms Band of Mission Indians of California The Twenty-Nine Palms Band of Mission Indians of California is a federally recognized tribe of Mission Indians with a reservation consisting of two sections, one located near the cities of Indio and Coachella in Riverside County, and the other ...

. In 2006 Trump officially exited the partnership. *

, sold in 2005 *

at Trump Plaza in Atlantic City, New Jersey. Operated as a wing of Trump Plaza, but with its own casino license, it was closed in 1999, and demolished in 2000. * Trump Castle (renamed Trump Marina in 1997) in Atlantic City, New Jersey; sold to Landry's, Inc. in 2011 and renamed the Golden Nugget Atlantic City. * Steel Pier, sold in 2011 * Trump Club Privee Casino - Canouan - Saint Vincent *

, a casino resort on the Atlantic City boardwalk; closed on October 10, 2016. Purchased by

Hard Rock International Hard Rock Cafe, Inc. is a British-based multinational chain of theme restaurants, memorabilia shops, casinos and museums founded in 1971 by Isaac Tigrett and Peter Morton in London. In 1979, the cafe began covering its walls with rock and r ...

and reopened as the Hard Rock Hotel & Casino Atlantic City in June 2018.

References

{{Trump businesses 1995 establishments in New Jersey Companies based in New Jersey Companies that filed for Chapter 11 bankruptcy in 1991 Companies that filed for Chapter 11 bankruptcy in 2004 Companies that filed for Chapter 11 bankruptcy in 2009 Companies that filed for Chapter 11 bankruptcy in 2014 Hospitality companies established in 1995 Hospitality companies disestablished in 2017 Business career of Donald Trump Gambling companies of the United States Hospitality companies of the United States Privately held companies based in New Jersey