Casino Owner Removes Bids to Demolish Trump Casino

Trump Plaza Casino

Not long ago, reports surfaced claiming there would soon be a bidding process available for those looking to demolish the Trump Plaza Hotel-Casino in Atlantic City. Unsurprisingly, many expressed interest in earning the right to take this property down. This week, reports came out claiming Carl Icahn has removed bids to demolish Trump casino.

It’s an interesting move for Icahn. This venue will still be demolished, albeit without the same spectacle that some predicted. Today, we’ll talk about what is happening with this property.

Here’s what we know.

Atlantic City Casinos Hope for a Better Year in 2021

Over the past decade, Atlantic City has grown to become one of the largest casino destinations in the world. It’s not much of a surprise. This city is home to a huge number of world-class casino-resorts. Many have gone through huge renovations over the past few years.

Things appeared to be going smoothly here. With the introduction of sports betting back in May of 2018, the casino industry here began to grow quickly. Many expected casino revenue here to rise steadily as the years went on.

2020 halted all of the progress made here. In March of last year, state leaders in New Jersey forced all of the casinos in this city to close their doors. It wasn’t until July that Atlantic City’s casino industry was given permission to reopen again.

Revenue has remained extremely low since this time. Atlantic City continues to see extremely small tourism numbers when compared to 2019. As a result, the casinos here are having a difficult time bringing in money.

The casino owners are now hopeful that 2021 proves to be a significantly better year for the industry here. Many believe that with effective vaccine distribution, more visitors will begin flocking to Atlantic City’s casinos. We should get a better idea of what to expect here this year over the next few months.

We’ve seen several major casino-resorts permanently shut their doors over the last few years. That includes one formally owned by Donald Trump. Here’s an update on this venue.

Carl Icahn Removes Bids to Demolish Trump Casino

The Trump Plaza Casino first opened its doors in Atlantic City back in 1984. For a time, it was one of the hottest gambling venues in the city. Due to competition and a drop in tourism rates, this property eventually went bankrupt and officially shut down in 2014.

Billionaire Carl Icahn eventually took control of this property and the land it sits on. Interestingly, he hasn’t decided to tear it down. To the disappointment of many officials in Atlantic City, this venue has simply remained closed and is beginning to fall apart.

Officials finally decided that a change was needed. News broke last year that Carl Icahn would soon be demolishing this venue. Reports then came out that a group was allowing businesses and individuals to bid for the right to demolish this property.

It now appears that Icahn has ordered to stop all bids to demolish Trump casino. Icahn reportedly sent a cease-and-desist letter on this bidding process. Instead, he will personally donate $175,000 (the amount expected to come in from bids) towards the Boys and Girls Club of Atlantic City.

Icahn believes that allowing untrained individuals to be involved with this demolition process is unsafe. A spokesperson offered more information about this situation to the media this week.

“From the beginning, we thought the auction and any other related spectacle presented a safety risk, and we were always clear that we would not participate in any way,” the spokesperson said. 

Those hoping to personally tear this property down are now out of luck. That doesn’t mean the Trump Plaza Casino will remain standing, though. Icahn still prepares to demolish the venue early this year. We’ll offer more information on this situation over the next few weeks!

Biggest US Casino-Resorts Opening in 2021

It will be interesting to see the Trump Plaza Casino torn down. This was one of Atlantic City’s most beloved venues for decades. It will now be torn down, making way for an exciting new casino-resort to open its doors here.

There are many incredible new casino-resorts scheduled to open their doors throughout the US over the next few years. Obviously, most are looking at Las Vegas. There are several major venues opening here in 2021.

The biggest and most exciting is Resorts World Las Vegas. This multi-billion-dollar venue is slated to open its doors to the public sometime this summer. More details on this casino-resort have been coming out lately. It’s expected to be one of the most impressive gambling properties ever built in Las Vegas.

Many are also excited about the new Virgin Hotel-Casino opening its doors this year. This is the first casino ever owned and operated by Virgin. It is also expected to be incredible and is expected to open its doors in Las Vegas early this year.

We will see many casinos built around the US this year. There are also a large number of casino-resorts scheduled to be torn down. Don’t expect to make any bids to demolish Trump casino, though.

Are you surprised Carl Icahn stopped the demolition bidding process? Let us know in the comments section below!

Carl Icahn Becomes the Largest Shareholder at Caesars

The stake that Carl Icahn has at Caesars Entertainment has been upped by the investor, who has now become the largest shareholder at the Las Vegas casino operator. It seems that the sale of this company is now more likely than ever.

Carl Icahn has purchased shares of Caesars Entertainment Corp. through entities related to him for a total of $38.9 million. By doing so, the billionaire investor from New York has become the single largest shareholder of this casino company, which has seen some turbulent times recently.

Icahn said on Friday that he owns a total of 15.53% in company stock at the moment, which is more than 5% up from the 10% that he had managed to amass over a certain period. The 83-year old businessman is a direct response to the news from last week where Caesars officials announced giving Mr. Icahn board representation. Courtney Mather, James Nelson, and Keith Cozza, CEO of Icahn Enterprises, were all given seats at the Board of Directors at Caesars, replacing three now-former members.

On the other hand, a completely unrelated piece of news last week stated that two companies that were shareholders at Caesars sold a huge part of their shares for a total of 36.7 million. Apollog Global Management LLC and TPH Capital now have a total of 5.7% of the owner’s stock of the casino provider.

Both Apollo and TPG managed to acquire Caesars in 2008 during a leveraged buyout, which resulted in the company’s debt being more than $25 billion. Caesars officials saw no other option but to put the company under Chapter 11 bankruptcy protection in 2015. They eventually managed to emerge from bankruptcy two years after that and have been actively looking for investors who would further help the company.

Icahn Proposes Sale

Icahn has been actively suggesting that Caesars should sell itself or merge with another company as a possible solution to end the turbulent period of the company. This is now more likely to happen than ever since he has the largest stake in the company. Icahn even published an official statement where he announces the three new board directors for Caesars, where he said that the best path forward for the company required a strategic process to merge it with another company or sell it. Furthermore, Icahn stated that he was willing to help Caesars to further develop the strong regional presence that it already has.

The thing with Icahn is that he has a long history of pressing a lot of businesses to either sell or merge, so his behavior and relationship towards Caesars is not out of the blue. However, now that he has the largest stake in the company, it seems that he is about to succeed in his endeavor and that the company is likely to sell or merge anytime soon.

In fact, Caesars already received a couple of sound offers for selling and merging, with one of the most prominent offers coming from Tilman Fertitta, who approached the company with an offer to merge with his hospitality and casino brand Landry’s, which is the owner of Golden Nugget casino chains.

Although Caesars declined the offer, Fertitta has purchased shares in the company and is still interested in merging it with his business. In other words, it seems that if Icahn and Fertitta strike a deal, the merging of the company would become inevitable. At the moment, it is unknown what Mr. Icahn thinks about this offer. One thing is certain — Caesars has an exciting future ahead of it.