Trump Taj Mahal era: 1990–2016
Construction of what was originally known as the Taj Mahal commenced in 1983 by Resorts International, owner of the neighboring Resorts Casino Hotel, with an estimated budget of $250 million.[5][6] Resorts head James Crosby said it might be named the United States Hotel, in reference to the city's first major hotel.[7]
After Crosby's death in April 1986, Resorts International became a takeover target.[8] The Taj Mahal had encountered construction problems, and Crosby's heirs, lacking experience in large development projects, doubted their ability to complete it successfully.[9] Donald Trump, who owned two other Atlantic City casinos, beat out several other bidders to purchase a controlling stake in the company for $79 million in July 1987.[10] Trump was appointed chairman of Resorts International, and said he would complete the Taj Mahal in about a year.[10]
Because New Jersey law prohibited anyone from owning more than three casinos, Trump planned to close the original Resorts casino and operate it as a hotel annex to the Taj Mahal.[11][12]
As the total budget had ballooned to $930 million, Resorts sought to raise $550 million to complete the Taj Mahal, but struggled to find the financing.[13] With the company claiming to be near bankruptcy in early 1988, Trump made a tender offer to buy all outstanding stock for $22 a share, stating that he was willing to personally finance the construction but only if he owned the entire company.[14] Television producer Merv Griffin made an unexpected offer to purchase the company for $35 a share,[15] sparking a highly publicized takeover battle,[16] with Trump and Griffin filing lawsuits against each other.[17] The two ultimately reached a settlement, which was executed in November 1988, with Griffin purchasing the company, and Trump purchasing the Taj Mahal from the company for $273 million.[18]
Trump raised $675 million to finance the purchase and completion of the casino, primarily through junk bonds with a 14 percent interest rate.[19][20]
The casino opened on April 2, 1990.[21] With 120000 sqft of gaming space, it claimed to be the largest casino in the world (though this was disputed by the Riviera),[22] and billed itself as the "eighth wonder of the world".[23] An elaborate grand opening ceremony was held three days later.[24]
In 1991, the Taj Mahal went through a prepackaged bankruptcy, resulting in Trump giving a 50 percent stake in the business to its bondholders in exchange for lowered interest rates and a longer payoff schedule.[25][26]
In 1996, Trump's new publicly traded company Trump Hotels & Casino Resorts purchased Taj Mahal in a transaction that valued the property at $890 million.[27][28] In the 1990s, Trump's Taj Mahal casino was "the world's largest, most flamboyant casino" and Trump took on an "enormous amount of debt" to launch it.[29] During eighteen months after its April 2, 1990 opening,[21] when the Casino was on the verge of bankruptcy, it became the "preferred gambling spot for Russian mobsters living in Brooklyn, according to federal investigators who tracked organized crime in New York City".[29] In 1998 Department of the Treasury’s Financial Crimes Enforcement Network announced that Trump Taj Mahal Associates had paid a civil money penalty of $477,000 for failing to file reports required by the Bank Secrecy Act.[30]
In 2001, the building hosted the UFC 31 and UFC 32 events, which were the first UFC cards held during the leadership of Dana White.[31][32][33]
The Taj Mahal was the highest grossing casino in the city until the opening of The Borgata in 2003. In 2008, The Chairman Tower opened, bringing the complex to over 2,000 rooms.
In 2013, the Taj Mahal opened the nation's first casino strip club, featuring scantily clad dancers.[34][35]
Bankruptcy filing
Trump Entertainment Resorts filed for bankruptcy on September 10, 2014,[36] and announced plans to close the Taj Mahal on November 13 if the casino did not get concessions from its unions.[37] A sister property, the Trump Plaza, did close in 2014.[38]
Workers from the casino marched to Mayor Don Guardian's office on the morning of November 3, 2014 to ask him to reconsider granting concessions, which the casino said were necessary to remain open. About 1,000 employees signed a petition calling on the mayor and other officials "to do everything possible" to keep the casino open. At the time, four of twelve casinos in Atlantic City had closed and the Trump Taj Mahal would have been the fifth if it were to close.[39]
In filing a revised reorganization plan in a Delaware bankruptcy court, Trump Entertainment Resorts said its board had approved a shutdown of the casino by December 12, 2014.
Bankruptcy filing
Trump Entertainment Resorts filed for bankruptcy on September 10, 2014,[36] and announced plans to close the Taj Mahal on November 13 if the casino did not get concessions from its unions.[37] A sister property, the Trump Plaza, did close in 2014.[38]
Workers from the casino marched to Mayor Don Guardian's office on the morning of November 3, 2014 to ask him to reconsider granting concessions, which the casino said were necessary to remain open. About 1,000 employees signed a petition calling on the mayor and other officials "to do everything possible" to keep the casino open. At the time, four of twelve casinos in Atlantic City had closed and the Trump Taj Mahal would have been the fifth if it were to close.[39]
In filing a revised reorganization plan in a Delaware bankruptcy court, Trump Entertainment Resorts said its board had approved a shutdown of the casino by December 12, 2014. The shutdown date was later pushed back to December 20.
Labor disputes
On November 14, 2014, Trump Entertainment Resorts announced that the casino would shut down in December unless its main union, UNITE HERE, dropped its appeal of a court-ordered cost-savings package, which had effectively cancelled the workers' health insurance and pension coverage.[49] However, it was revealed that the closing was to happen because it had not received the state and local tax breaks it sought.[50]
On October 10, 2016, the Trump Taj Mahal Hotel and Casino was shut down amidst chaos of casino workers on strike, though Hard Rock Cafe remained open.[45]
Hard Rock: 2018–present
On March 1, 2017, Hard Rock International announced its purchase of the Trump Taj Mahal property, and officially reopened as the Hard Rock Hotel and Casino Atlantic City,[2] on June 27, 2018.[4]
In November 2018, the Hard Rock announced a plan to launch both online and retail sportsbooks in 2019.[51]
In January 2019, the Hard Rock launched its online sportsbook, making it the 10th sportsbook app in New Jersey.[52]
In January 2020, Scores Nightclub officially closed down. One month later, in February 2020, Robert's Steakhouse closed.
