Billionaire Says Atlantic City's Trump Taj Mahal Will 'Almost Certainly Close'

Though it likely won’t close next month, the Trump Taj Mahal in Atlantic City will “almost certainly” be closing this year, said billionaire investor Carl Icahn, who was flirting with the idea of injecting $100 million into the floundering property if certain stipulations were met.

Icahn, who also owns the Tropicana, owns a huge amount of the casino’s current debt.

According to the Associated Press, Icahn put a lot of the blame on the union, which is trying to secure a reasonable existence for casino employees. Icahn and the casino want employees to work without having health care. Earlier this month, a federal judge voided the casino’s contract with a local union.

Trump Entertainment, the Trump Taj Mahal’s parent company, claims shedding the union contract saves it $14.6 million a year. Trump Entertainment closed the Trump Plaza in September.

The firm is also caught up in a dispute with Donald Trump, who wants his name off the Trump Taj Mahal. Donald reportedly still has a small stake in Trump Entertainment.

The casino and Icahn have also been hoping to siphon off $175 million in taxpayer money to pump into the business. Some government officials have rejected the aid demands.

Icahn has said he needs the government aid and the shedding of the union contract to take control of the Trump Taj Mahal and invest a nine-figure sum into the casino.

However, he told the AP that not getting what he wants might be a blessing in disguise.

“Frankly, several of my advisers have told me that if the city and the state did not come up with the money, they’d be doing me a large favor,” Icahn said. “Even if we get the concessions from the city and the state, we’re going to lose a lot of money. Everybody thinks I’m trying very hard to do this. I’m not.” He added that he wishes he never even considered doing this.

When the Taj goes down, Atlantic City will have just seven casinos by 2015. The seaside town, once the gambling hub of the Northeast, started the year with 12 brick-and-mortar casinos.

The Taj has been featured in a number of movies, including the poker cult classic Rounders, in which stars Matt Damon and Edward Norton play a session in the casino’s poker room. With 48 tables, the room is the second largest in Atlantic City behind the Borgata.

After the closing of the Taj, just five poker rooms will remain in Atlantic City.

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