Oct 10, 2016 Casino is the latest to close in troubled Atlantic City. The Trump Taj Mahal opened in 1990 after heavy debt financing and years of legal and financial maneuvers by its then-owner Donald Trump. After Long Union Fight, Trump Taj Mahal Ironically Closing on Labor Day Weekend The Trump Taj Mahal is about to become the fifth Atlantic City casino to close its doors for good in 3 years. Oct 10, 2016 Tha fabled Taj Mahal Casino will be closing its doors after Labor Day: this time, for good (source: trumptaj.com) Twenty six years A quarter of a century and then some: that’s how long the Taj Mahal Casino has been in operation, employing thousands of people and witnessing countless stories of gambling.

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Published 10:03 AM EDT Oct 11, 2016

The Trump Taj Mahal, an iconic casino hotel on the Atlantic City boardwalk, ceased operations Monday after hemorrhaging money for years and negotiations with an employees' union broke down, according to its owner, billionaire investor Carl Icahn.

The shutdown, which leaves 3,000 employees out of work, was widely expected after management announced the planned closure in August. Beset by labor strife and the decline of Atlantic City as a resort and gaming destination, the hotel lost 'almost $350 million over just a few short years,' Icahn said in a statement Monday.

About 1,000 employees, including cooks, bartenders, housekeepers and cocktail servers, went on strike July 1, seeking health care and pension benefits. Icahn said his last offer, which included medical benefits, was rejected and keeping the Taj open would have required additional investments and result in losses in 'excess of $100 million over the next year.'

The union, Unite Here Local 54, says many workers at the hotel 'have seen only 80 cents per hour in total raises over the last 12 years' while the cost of living in Atlantic City has risen more than 25% during the period.

'Workers are trying to reenter the middle-class after Icahn used the bankruptcy court to strip them of pay and benefits worth more than one-third of their total compensation,' the union said in a statement released last month. 'Housekeepers, servers and other casino workers at the Taj Mahal earn on average less than $12 and hour.'

Icahn's clash with the union employees cost the Taj Mahal an estimated $150 million, the union said.

Meanwhile, Tony Rodio, CEO of Tropicana Entertainment Inc., which manages the hotel for Icahn Enterprises, said in August Icahn has lost about $100 million in trying to run the Taj Mahal after he acquired it from bankruptcy proceedings in February. Tropicana Entertainment is controlled by Icahn Enterprises.

Atlantic City's decline has been well-chronicled as its past reputation as an East Coast gaming center and proximity to beaches couldn't sufficiently compensate for out-of-state competition and the city’s deteriorating infrastructure. Four other casinos in the city have closed since 2014, including Showboat Casino Hotel, Revel, the Atlantic Club, and Trump Plaza Hotel.

The Trump Taj Mahal opened in 1990 after heavy debt financing and years of legal and financial maneuvers by its then-owner Donald Trump, the Republican presidential nominee. When it opened, it was one of the largest casinos in the world, with more than 100,000 square feet of gaming space, and it billed itself as 'the eighth wonder of the world.'

But the fancy billing belied numerous financial woes it faced over the years, including multiple bankruptcy filings by its owners. In 2009, Trump Entertainment Resorts underwent a round of bankruptcy restructuring, in which Donald Trump lost control and the hotel operator company was sold to investment firm Avenue Capital.

In 2014, Trump Entertainment Resorts, whose assets by now mostly consisted of the Taj Mahal, again filed for bankruptcy protection. When it emerged from the legal proceedings in February, Icahn had grabbed control and the hotel become a subsidiary of Icahn Enterprises.

According to its website, Trump Taj Mahal customers had until 8 a.m. Monday to redeem gaming chips and vouchers at the hotel. After 8 a.m., they can be redeemed at Tropicana Atlantic City’s Casino Cage.

Room bookings on and after Oct. 9 have been cancelled. Room deposits will be refunded, it said.

Published 10:03 AM EDT Oct 11, 2016

Another Atlantic City Property Shutters

For those of you who weren’t aware, the Trump Taj Mahal released a statement on Wednesday, August 3rd, 2016 at around 3:00p.m. that indicated they would be closing after Labor Day as the ongoing Unite Here 54 strike, as of Thursday the longest strike by Atlantic City casino workers surpassing a thirty-four day strike in 2004, has, ‘Left them without a path to profitability.’

In 2014, during one of the Taj Mahal’s noted bankruptcies, a federal judge ruled that they would be able to cut the healthcare benefits and the pensions of the employees of the Taj Mahal. The subject matter of the current strike is to have those very benefits, in addition to vacation benefits and paid breaks, reinstated.

The Trump Taj Mahal opened in 1990 under then owner Donald Trump at a cost of nearly one billion dollars making it, at the time, the most expensive casino property in the country. The property, which took several years to build due to various financing issues, filed for bankruptcy nearly a year after opening during which then owner, Donald Trump, gave up a fifty percent stake in the interest in the property in exchange for a reduced interest rate and extended payment schedule.

However, ‘The Taj’ did not have an entire history that was that rocky. In fact, it was Atlantic City’s best grossing casino until 2003 when The Borgata opened. Since then, however, The Trump Taj Mahal has experienced prolonged revenue declines and is currently (as of June 2016) the second lowest grossing property in Atlantic City with only Resorts coming in last.

In the wake of four Atlantic City casinos closing in 2014, it looked as though The Taj was set to follow suit. They nearly closed in late December of 2014 claiming that if Unite Here 54 would not agree to the concessions on the employees’ benefits, the property could not possibly stay open. In fact, a bankruptcy judge had previously ruled that the concessions were lawful, but Unite Here 54 was appealing that ruling, so The Taj wanted to have that appeal dropped before they would agree to remain open.

In case it was not already obvious, the situation has not improved for the Trump Taj Mahal since then with the casino continuing to lose several million dollars per month. Even after concessions were agreed to by Unite Here 54 and Carl Icahn (on the same day) invested twenty million more dollars into the property, there continued to be no sign of hope for the casino. The casino would eventually exit bankruptcy with Carl Icahn (who owned all of the casino’s debt) assuming full ownership of the property which would go on to be managed by his Tropicana Entertainment company.

At that time, Icahn pledged that he would invest one-hundred million dollars into the property, but later opted to delay this investment pending a November vote to legalize casinos in Northern New Jersey.

While the strike taking place at The Taj Mahal is well-known and publicized, what is not as widely known is that Unite Here 54 Members voted (96%) to authorize a strike on July 1st against not just The Taj, but also Tropicana, Caesar’s, Bally’s and Harrah’s citing that they have made sacrifices while the times were tough and that they should see increased wages now that those casinos (meaning all but The Taj) are profitable. They further cited the fifty million dollars in bonuses that high ranking executives at CET properties were to get in bonuses as additional fuel for the strike.

A tentative agreement was reached between union members and the CET properties in advance of the strike, with Tropicana later reaching a tentative agreement with Unite Here 54. The Taj Mahal was the lone holdout in the agreement.

For those with years of employment in the Atlantic City casinos, they were particularly incensed with the fact that not only had their benefits (such as health and pensions) been cut, but they had also seen only an average of $0.80/hour in wage increases over the last twelve years.

Approximately two weeks ago, I wrote this article about my experience getting through the protesters.

As well as a companion editorial on our sister site, LatestCasinoBonuses.com highlighting my po

Taj Mahal Casino Closing Day