The presidential candidate Donald Trump is not a born politician. The billionaire Trump is first and foremost a real estate mogul who made a fortune in New York. Among other things, he has invested his millions in the terrestrial casinos in Atlantic City. However, the 2008 crisis hit the US gaming industry hard. Donald Trump dreams of spreading his name even further in America. But will he be able to drive the growth of American casinos?
The failure of Trump on the East Coast
Donald Trump dreams of spreading his name even further in America. But will he succeed in driving the growth of American casinos forward?
Donald Trump rushes from one political meeting to the next to be able to run as a Republican candidate in the November presidential elections. When journalists ask him about his plan to revive the American economy, he emphasizes his business success and billion-dollar fortune. But the real estate mogul was not always successful. Because his investments in the terrestrial casinos of Atlantic City had partly devastating consequences and made thousands of people unemployed. Trump had opened a total of three casinos in Atlantic City. In 1984 he opened the Trump Plaza. The next year already followed the Trump Castle. The Trump Taj Mahal was completed in 1990. The casino covers 15,500m2 and cost a billion dollars. This gaming facility is therefore considered the most expensive casino in the world. In order to be profitable, the casino should generate a turnover of one million dollars per day. But Trump failed miserably at this goal and had to file for bankruptcy in 1991. In 1992 the casinos Trump Plaza and Trump Castle announced insolvency. They must know that Donald Trump was the best employer in Atlantic City at the time and employed over 12,000 people. The following years meant the slow decline for the casinos of Atlantic City and thousands of employees lost their jobs in the casinos of Trump! He finally threw in the towel in 2014 with the closure of Trump Plaza and the sale of his last two casinos.
Trump, the future King of the West Coast
The failure of Donald Trump on the East Coast, however, has not broken his will to conquer the West Coast of the USA. In fact, he already owns a luxury hotel in Las Vegas: The Trump Hotel Las Vegas. The hotel opened its doors in 2008 and is 190 meters high. It comprises 64 floors. The façade of the hotel is covered with gold and therefore does not go unnoticed even in the capital of the players. The businessman now wants to build a casino near his hotel. The investment here is modest, as it “only” costs 100 million dollars. Donald Trump seems to have learned from his mistakes and wants to join forces with another billionaire, Phil Ruffin, to make the project a success. Trump’s investment would therefore amount to only 50 million dollars. A piece of cake for Trump, which has total assets of $4 billion. Should Donald Trump win the presidential election, he would like to leave the management of the casino to his son Eric.
Since 2008, Las Vegas casinos have had difficulty keeping their former profits. Macao’s competition and online gaming also affect Nevada’s casino operators. So Trump’s future investment in a casino is just as uncertain as his race to run for president.