Carl Icahn halts the sale of Trump's casino.
The well-known investor, casino owner, and associate of soon-to-be President of the United States Donald Trump, Carl Icahn, has put a stop to the sale of the insolvent Trump Plaza in Atlantic City. A plan had been made to auction off the demolition of the casino for charity, but Icahn, the current owner, raised safety concerns. The city council reacted with disappointment. What's next for the venue?
Icahn opts to take over the donation
Years ago, before his time as a US president, Donald Trump gifted several bankrupt casinos to the city of Atlantic City. These included the Trump Plaza. The demolition of the building was decided in June 2020 after Mayor Marty Small called it an eyesore in the city. The plan was to demolish the establishment and auction it off for charity.
However, the plans took an unexpected turn when Carl Icahn, the current owner and a friend of Donald Trump, intervened. The billionaire businessman, major stakeholder in companies like Caesars Entertainment, expressed concerns over safety issues. The auction was organized by the Bodnars auction house, which had to cancel the auction requested by Small.
The company expressed their sadness at having to halt the auction due to unforeseen circumstances. The highest bid on record had been $175,000, which was desperately needed to support the Boys and Girls Club of Atlantic City, a charity promoting youth development. Icahn then offered to donate the funds himself.
Back in the early 1980s, Donald Trump started to make a name for himself in the Atlantic City casino market. He built three casinos here - the Trump Plaza, the Trump Marina (now the Golden Nugget), and the Trump Taj Mahal. Business was thriving until the mid-1990s, but increasing competition caused the casinos to enter crisis. Trump's casino company collapsed four times, and all three resorts went bankrupt. The Taj Mahal has since reopened as the Hard Rock Casino, while Icahn took control of the Trump Plaza.
A blemish in the cityscape
Trump distanced himself from Atlantic City in 2009 after four bankruptcies. Critics often complained that the Trump name still adorned the rundown buildings for years afterward. The Trump brand still lingered on the Trump Plaza, which was seen as a blot on the cityscape. The numerous controversies surrounding Trump while in office added fuel to the flames.
Even Carl Icahn, a friend of Trump and key player in the merger between Caesars and Eldorado, was unable to save the Trump Plaza from its inevitable end. Although Icahn managed to disrupt the demolition plans, Mayor Small announced that he would have the dilapidated building removed even without an auction.
Carl Icahn, aged 84, is the head of Icahn Enterprises, a conglomerate that deals with asset management, real estate, metal mining, and consumer goods. Beyond his business ventures, he's an avid poker player and owns three casinos. Known as a corporate raider, Icahn is famous for his aggressive tactics. He purchases significant shares in a company and takes control, actively restructuring it. With a fortune of over $15 billion, Icahn ranks 39th on the Forbes list of the wealthiest individuals.
Bodnars had no choice but to cancel the auction
According to media, the Bodnars auction house received a letter from Icahn Enterprises stating that they should halt the auction. The public show was deemed a potential safety hazard as it may result in flying debris injuring onlookers.
Mayor Small was optimistic about raising a million dollars through the auction, but Icahn was convinced of the safety risks from the beginning. An Icahn representative announced that their company would in no way be involved. In response, Bodnars announced that they had no other choice but to cancel the auction.
After exploring every option to make the auction happen, they ultimately received the final decision from Icahn's company, causing them to scrap the event. Small, however, commended Icahn for stepping in and making a personal donation to the Boys and Girls Club of Atlantic City. The fate of the Trump Plaza remains uncertain for now.
Biden takes a modern stance on gambling
With Joe Biden now in office, online gambling in the United States has a potential advocate. At a rally in Las Vegas in January 2020, the newly elected President expressed his disapproval of excessive restrictions on online gambling. He also called for a reinterpretation of the 1961 Wire Act, which initially prohibited cross-state sports betting.
Biden's more progressive perspective on online gambling aligns with his stance during his campaign to defeat President Trump, who had failed in the land-based casino business. His modern approach is unsurprising. For now, however, potential reforms to US gambling laws are overshadowed by the ongoing threats of the coronavirus pandemic.
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Source: www.onlinecasinosdeutschland.com
