Carl Icahn Wont Invest In Taj, If North Jersey Casinos Are Built

Carl Icahn who recently took over Trump Taj Mahal casino in Atlantic City has announced that he will not be investing into the casino the $100 million that he had planned if New Jersey decides to build additional casinos in north Jersey.

Icahn, who also owns Tropicana Casino and Resort in Atlantic City, acquired the Trump Taj Mahal Casino Resort from the bankruptcy court in 2015.

He had taken on the casino’s debt of $292 million in exchange for its ownership and announced at that point in time he will invest $100 million to revitalize the casino.

But the recent drive by the state’s legislators to push through a referendum which asks the state’s voters to approve building casinos outside of Atlantic City is causing him concern.

SNJ Today

The proposal to build two new casinos is an attempt to improve revenues for the state after the collapse of the Atlantic City’s gambling industry. Although the locations for the casinos are yet to be finalized, they will be at least 72 miles away from Atlantic City and are likely to be situated in north Jersey. The bill is dependent on getting approval from the voters of the state as the New Jersey constitution will need to be amended to allow construction of casinos outside Atlantic City.

Icahn has stated that having more casinos in the state would result in severe damage to the prospects of the already struggling Atlantic City, making any investment in the casino of no value.

In a statement, Carl Icahn said,

Although I had planned to invest up to $100 million in the Taj, just as I made substantial investments at the Tropicana, obviously it would not be judicious to proceed with those investments while gaming in north Jersey is an open issue, and we will have to wait to see the outcome of those proposals.

Icahn has been critical of New Jersey politicians, saying that they have backtracked on their promises to him that there will be no approval for casinos upstate. He questioned their credibility stating that if the assurances of New Jersey politicians are not to be trusted, then no one would be interested in investing in the state.

He has however stated that irrespective of the referendum’s outcome he will make an immediate investment of $10 to $20 million to cover maintenance costs and other important necessities for the Taj Mahal Casino.

Adrian Sterne

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