Donald Trump is famous for his extraordinary personality and sometimes weird behavior. However, not everybody knows that the current President of the USA wanted to become a part of the gambling world. He invested millions of dollars to build and maintain casinos that should have become a profitable addition to his corporation but something went wrong. In this article, we have decided to look at the most famous failures of Trump Entertainment Resorts. Let’s get it started!
Failure of Trump Entertainment Resorts: How Taj Mahal ran out of money in the very first summer of its existence
The curtain opens up in 1988 at a casino licensing hearing held by the New Jersey Gambling Control Commission. At the meeting, Trump made a great monologue on why he should get permission to complete a project worth $ 1 billion. He mentioned that he could get really good interest rates from the bank. In reality, Donald wanted to buy “junk bonds”. The interest rate of junk bonds was 14%, meaning that Trump had to make $ 95 million in interest payments annually for only one Taj Mahal Casino Resort, in addition to paying off principal and payments at other enterprises.
In practice, this meant the Taj Mahal being defaulted for several months. In 2016, in a CNN report, it was emphasized that the project, from the moment it was opened, did not have enough funds to cover daily operating costs. Of the first 16 working days, four did not profit at all. The bank account contained less than zero dollars, and the overdraft exceeded $ 1.7 million. Taj Mahal nearly went bankrupt in June, exactly two months after opening. Trump took another bank loan that helped the casino survive for another six months. However, the bankruptcy could not be avoided so it became one of the failures of Trump Entertainment Resorts. He should have better invested in one of the online casinos in the USA!
How one of Trump Entertainment Resorts was fined $650,000 for racism
One of Trump Plaza casino’s regular big players was Robert Libutti, a wealthy horse breeder. Libutti had an awful temper and had connections with Gambino clan boss John Gotti. Robert’s nasty character has contributed to the emergence of big problems in Trump’s casino. Libutti screamed at casino workers more than once, using racist and sexist remarks. Moreover, he demanded that the “color” and female staff stay away from him.
To preserve the business and keep such a profitable client (as reported, he lost about $ 12 million at Trump’s casino), it was decided to replace all the “objectionable” workers from the tables where Libutti played. For this, the Gambling Control Commission fined Trump Plaza $ 200,000. Three months later, the same commission issued another fine to Trump Plaza. However, this time it was $ 450,000 for the purchase of nine luxury cars from Libutti. It is illegal to buy Ferrari from gangsters. It looks like one of the failures of Trump Entertainment Resorts. However, this thing would never have happened to any of the online casinos in the USA. That’s where Trump should have invested the money!
Donald’s father loaned him playing chips worth $ 3.35 million
This story is borrowed from Mother Jones magazine. This publication is a well-known journalistic investigation. In 1990, Trump was at risk of default for non-payment of interest on Trump Castle casino profit. However, since he had already defaulted due to the non-payment of debt for the Taj Mahal, all investments went to pay it. At that time, Fred Trump, Donald’s father, arrived at Trump Castle and simply bought playing chips worth $ 3.35 million.
His father did not use chips for gambling, and also did not cash them. In reality, Trump Castle casino paid his debt. A year later, the New Jersey Gambling Control Commission conducted an investigation and identified the purchase of chips as a violation of the law. The commission recommended that Trump refund the money for chips, which he did not, and fined him $ 65,000. It looks like one of the failures of Trump Entertainment. Donald has no luck in gambling. Maybe he should try one more time in the Intertops Casino. Every customer of this platform has a pleasant gambling experience only. Moreover, you can check the latest Donald Trump special bets for 2020. Maybe one of the President’s failures will become a cause of your winnings!