Hard Rock Hotel & Casino Atlantic City

History

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. Resorts head James Crosby said it might be named the United States Hotel, in reference to the city's first major hotel.

After Crosby's death in April 1986, Resorts International became a takeover target. The Taj Mahal had encountered construction problems, and Crosby's heirs, lacking experience in large development projects, doubted their ability to complete it successfully. 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. Trump was appointed chairman of Resorts International, and said he would complete the Taj Mahal in about a year.

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.

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. 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. Television producer Merv Griffin made an unexpected offer to purchase the company for $35 a share, sparking a highly publicized takeover battle, with Trump and Griffin filing lawsuits against each other. 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.

Trump raised $675 million to finance the purchase and completion of the casino, primarily through junk bonds with a 14 percent interest rate.

The casino opened on April 2, 1990. With 120000 sqft of gaming space, it claimed to be the largest casino in the world (though this was disputed by the Riviera), and billed itself as the "eighth wonder of the world". An elaborate grand opening ceremony was held three days later.

1991BankruptcyIn 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.

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. 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. During eighteen months after its April 2, 1990 opening, 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". 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.

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.

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.

Bankruptcy filing

Trump Entertainment Resorts filed for bankruptcy on September 10, 2014, and announced plans to close the Taj Mahal on November 13 if the casino did not get concessions from its unions. A sister property, the Trump Plaza, did close in 2014.

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.

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. On December 18, two days before the scheduled closure, the labor union UNITE HERE! reached a deal with Trump Entertainment Resorts that saved the Taj from closing. The same day, billionaire Carl Icahn committed $20 million in financing for the Taj.

In February 2016, Trump Entertainment Resorts exited bankruptcy and became a subsidiary of Icahn Enterprises. The casino retained the name "Trump Taj Mahal", though Donald Trump no longer held any ownership stake. In April, another Icahn affiliate, Tropicana Entertainment, took over the property under a management agreement. Icahn also stated he would withhold a planned $100-million investment into the property if New Jersey approved casinos in the northern region of the state.

On Monday, October 10, 2016, the Trump Taj Mahal Hotel and Casino was shut down. After the closing on that date, one UNITE HERE's leader raised the possibility that the casino would remain closed over the winter but will reopen in Spring 2017 as a non-union facility, an attempt that he said would try to prompt a union boycott. On March 1, 2017, Hard Rock International announced plans to spend $300 million to purchase the resort and renovate it. It re-opened as the Hard Rock Hotel & Casino Atlantic City on June 27, 2018.

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. However, it was revealed that the closing was to happen because it had not received the state and local tax breaks it sought.

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.

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, on June 27, 2018.

In November 2018, the Hard Rock announced a plan to launch both online and retail sportsbooks in 2019.

In January 2019, the Hard Rock launched its online sportsbook, making it the 10th sportsbook app in New Jersey.

In January 2020, Scores Nightclub officially closed down. One month later, in February 2020, Robert's Steakhouse closed.

Labor disputes

On June 15, 2022, UNITE HERE union members voted overwhelming in favor of a strike if their agreement is not made by July 3. UNITE HERE Local 54, which represents workers at the casino as well as other casinos in Atlantic City demanded a raise in wages to help cover financial setbacks from the pandemic and increases in living costs.

Money laundering

Over its years of operation from 1990 to 2016, the Trump Taj Mahal was, according to National Public Radio business correspondent, Jim Zarroli, "repeatedly cited for having inadequate money-laundering controls, not an unusual charge in the gaming business".

In February 2015, the U.S. Department of the Treasury's Financial Crimes Enforcement Network settled an investigation of the Trump Taj Mahal with the assessment of a $10 million civil fine for "significant and long-standing money laundering violations" which were described as "willful and repeated" contraventions of the record-keeping and reporting requirements of the Bank Secrecy Act. It was the highest penalty ever levied by the U.S. Federal Government against a casino.

The casino agreed to periodic external audits to comply with anti-money laundering statutes, The U.S. Treasury made note of casino violations dating back to 1998, when the Trump Taj Mahal paid a $477,700 fine for violating currency transaction requirements, as well as violations in 2003, 2010, and in 2012, for which the company was "repeatedly warned". The Trump Taj Mahal was "far from meeting" standards required to protect the U.S. financial system "from exploitation from criminals, terrorists, and other bad actors", the Treasury said in a press release.

In 2017, CNN obtained access to U.S. Treasury Department documents under the Freedom of Information Act (FOIA) which included the 1998 and the 2015 settlement.

Controversies

Alleged organized crime links

A 218-page U.S. Senate Subcommittee report, "Asian Organized Crime: the New International Criminal", released in 1992 linked Trump's businesses to Asian organized crime.

The Senate subcommittee named Danny Sau Keung Leung, who had been the Trump Taj Mahal's vice president of foreign marketing since 2000, as an associate of the Hong Kong-based organized crime group 14K Triad linked to "murders, extortions and heroin smuggling". Leung worked at the Trump Taj Mahal from 1990 to 1995. He was "known by law enforcement to be linked to organized crime syndicates" and was investigated by the New Jersey Casino Control Commission in 1995 with hearings in Atlantic City regarding his "background and character". "Mentions of Trump businesses" were "sprinkled throughout the 1992 Senate report on "Asian organized crime in the United States". "Crime bosses who ran the Chinatown bus system put together trips to Trump businesses in Atlantic City. [O]ther people with links to organized crime booked shows at Trump venues and in 1987, one was indicted on a charge of providing kickbacks to executives at Trump Castle." According to an Internal Revenue Service report cited in a 2016 Politifact article by Linda Qui, Trump also worked closely with other members and associates of organized criminal enterprises, including Danny Leung, Felix Sater, Salvatore Testa, and Kenneth Shapiro". In 1984, Canadian police had identified Leung as "a major player in Toronto organized crime", yet in 1989, the New Jersey Casino Control Commission granted him the casino "key license reserved for executives" and he began working for the Trump Taj Mahal in 1990. At the New Jersey Casino Control Commission hearing in 1994, Trump sent Taj President Dennis Gomes to "testify on Leung's behalf at the hearing New Jersey Casino Control Commission. In spite of an objection of the Division of Gaming Enforcement and the testimony of Canadian police, his casino key license was renewed. "Leung's lawyer, Guy Michael said, that the criminal allegations were "absolutely untrue. In August 2013, Leung requested to be placed on the Casino Key Employee Inactive List in August 2013 "in lieu of complying with the resubmission process".

Shooting incidents

On May 27, 2009, Ray Kot, a casino supervisor for the former Taj Mahal, was shot and killed while working, by Mark Magee of Norristown, Pennsylvania. Magee claimed that he killed Kot because all "casinos cheat gamblers". On August 11, 2010, Magee was sentenced to 30 years without parole, "The Ray Kot Memorial Park" was dedicated on October 16, 2009.

On September 18, 2011, a man was shot dead and a woman was wounded during an apparent carjacking inside the parking garage of the casino. The man, 28-year-old Sunil Rattu, and the woman, 24-year-old Radha Ghetia, were held up as they left the casino, and then forced to drive to a nearby alley where Rattu was shot dead, while Ghetia was shot in the upper part of her body. Ghetia was treated for her injuries and later recovered. Just days later, three Camden men were taken into custody; two of whom admitted to the crime and took plea bargains with the county attorneys office, one sentence of 40 and the other one for 47 years.

On March 24, 2016, three teenagers attending a party in a hotel room on the forty-seventh floor were shot. Seven suspects were arrested in connection with the incident, which was later described as "gang related".

Gallery

File:Trump Taj Mahal.jpg|The Trump Taj Mahal, as seen from the boardwalk File: Trump Taj Mahal and Chairman Tower.JPG|The Trump Taj Mahal, as seen from the boardwalk File:Trump Taj Mahal from Fairfield Resorts 20060627.JPG|The Taj Mahal, as seen from the Fairfield Resorts File:20060627 Trump Taj Mahal from Pacific Avenue.jpg|The Trump Taj Mahal, as seen from just beyond Pacific Avenue File:Taj Mahal Atlantic City New Jersey.jpg|Entrance to the Trump Taj Mahal at night File:Hard Rock Hotel & Casino - Atlantic City 01.jpg|Hard Rock Hotel & Casino from the Boardwalk File:Hard Rock Hotel & Casino - Atlantic City 02.jpg|Hard Rock Hotel & Casino from the Boardwalk File:Hard Rock Hotel & Casino - Atlantic City 04.jpg|The North Tower from the Boardwalk

References

References

1. Gurbir S. Grewal. (May 22, 2019). "DGE Announces 1st Quarter 2019 Results". State of New Jersey.
2. (March 2, 2017). "Hard Rock International Announces Partnership with Morris and Jingoli Families to Purchase Atlantic City's Taj Mahal". Hard Rock International.
3. "Taj Mahal Casino Closing". U.S. News & World Report.
4. (June 28, 2018). "Atlantic City Hard Rock, Ocean Resort open early". [[The Press of Atlantic City]].
5. Anne McGrath. (October 27, 1983). "Ground broken for Resorts' 2d N.J. casino-hotel". [[The Philadelphia Inquirer]].
6. Richard Koenig. (April 19, 1988). "Trump, man of glitz, is forced to cut back at Taj Mahal casino". [[The Wall Street Journal]].
7. Donald Janson. (November 6, 1983). "Resort wasteland: Change is in sight". [[The New York Times]].
8. (March 25, 1987). "Resorts International receives takeover offer to rival Trump's". Sun-Sentinel.
9. John Crudele. (March 10, 1987). "Trump buys 73% stake in Resorts for $79 million". [[The New York Times]].
10. Joyce A. Venezia. (July 22, 1987). "Trump completes the deal for Resorts International". [[The Philadelphia Inquirer]].
11. (October 12, 1987). "Trump wants to close casino at Resorts International". UPI.
12. Donald Janson. (December 17, 1987). "Trump wins approval to shift Resorts license". [[The New York Times]].
13. (December 22, 1987). "Trump offers to buy rest of Resorts' common stock". [[Los Angeles Times]].
14. Frank Allen. (February 2, 1988). "Trump renews his push to take Resorts private". [[The Wall Street Journal]].
15. Al Delugach. (March 18, 1988). "Griffin takes on Trump for Resorts shares". [[Los Angeles Times]].
16. (April 15, 1988). "Takeover battle ends for Trump, Griffin". [[Chicago Tribune]].
17. (March 22, 1988). "Merv Griffin sues to block Trump offer for Resorts, says he may boost his own". [[The Wall Street Journal]].
18. Beatrice E. Garcia. (November 16, 1988). "Trump completes the sale of Resorts to Merv Griffin". [[The Wall Street Journal]].
19. David Johnston. (November 16, 1988). "It's done: Griffin buys Resorts from Trump". [[The Philadelphia Inquirer]].
20. Robert O'Harrow Jr.. (January 18, 2016). "Trump's bad bet: How too much debt drove his biggest casino aground". [[The Washington Post]].
21. Daniel Heneghan. (April 3, 1990). "Taj: open sesame!". [[The Press of Atlantic City]].
22. (April 3, 1990). "Trump cites Taj's 'grandeur' while playing down its size". [[The Press of Atlantic City]].
23. Daniel Heneghan. (April 5, 1990). "For Trump's Taj Mahal, only big will do". [[The Press of Atlantic City]].
24. Daniel Heneghan. (April 6, 1990). "Trump opens Taj with flourish". [[The Press of Atlantic City]].
25. (July 18, 1991). "Chapter 11 for Taj Mahal". [[The New York Times]].
26. (October 5, 1991). "Taj Mahal is out of bankruptcy". [[The New York Times]].
27. David Cay Johnston. (January 9, 1996). "Trump moves to put Taj Mahal in his company". [[The New York Times]].
28. (May 2, 1996). "Form 8-K: Current Report". Trump Hotels & Casino Resorts Inc..
29. Pagliery, Jose. (May 22, 2017). "Trump's casino was a money laundering concern shortly after it opened". CNN.
30. "FinCEN ANNOUNCES PENALTY AGAINST TRUMP TAJ MAHAL ASSOCIATES". Fincen.gov.
31. Cabral, Sam. (July 18, 2024). "UFC boss to promote Trump's 'fighter' image at RNC finale". BBC News.
32. Rin Velasco, USA Today Network. (July 18, 2024). "Who is Dana White? Trump's longtime friends stumps for him at RNC 2024. What he said". Norwich Bulletin.
33. (July 18, 2024). "UFC CEO Dana White endorses Trump at Republican National Convention: Watch". USA Today.
34. Augenstein, Seth. [http://www.nj.com/atlantic/index.ssf/2013/07/strip_club_coming_to_atlantic_city_casino_reports_say.html "Nation's first casino strip club coming to Atlantic City"] in ''The Star-Ledger'' (July 4, 2013). Retrieved August 27, 2013.
35. (August 27, 2013). "A.C.'s Taj Mahal looks to score with strip club". [[The Philadelphia Inquirer]].
36. Staff Writer. (September 9, 2014). "Trump Entertainment files for bankruptcy; Taj Mahal could close in November". Bloomberg News.
37. (September 14, 2014). "Trump Taj Mahal employees issued layoff notices ahead of possible November closure". NJ.com.
38. (February 29, 2016). "Trump Taj Mahal Casino Emerges From Bankruptcy". www.cardplayer.com.
39. "Casino workers to give Atlantic City mayor petition to reconsider aid to keep Taj Mahal open". Fox Business.
40. Maggie McGrath. "As Deal To Save Trump Taj Mahal Falls Through, Icahn Pledges $20 Million In Financing". Forbes.
41. (February 26, 2016). "Trump Taj Mahal Casino Out of Bankruptcy, Into Carl Icahn's Hands".
42. (May 3, 2016). "Form 10-Q: Quarterly Report". Tropicana Entertainment.
43. Joshua Jamerson. (March 2, 2016). "Tropicana to manage Trump Taj Mahal; Icahn chides N.J. Leaders". [[The Wall Street Journal]].
44. "No money for Taj Mahal if New Jersey casinos are approved".
45. "City Loses Trump Taj Mahal After 26 Years".
46. Parry, Wayne. (October 10, 2016). "Donald Trump: 'No reason' for Taj Mahal casino shutdown (updated)".
47. Huba, Nicholas. "Hard Rock unveils $375 million plans for Taj Mahal". [[The Press of Atlantic City]].
48. (March 1, 2017). "Hard Rock in deal to buy Trump Taj Mahal". [[Philly.com]].
49. (November 15, 2014). "Trump Taj Mahal to Close in New Jersey, Union Demands at Fault, Say Owners". www.casino.org.
50. "APNewsBreak: Papers Filed to Close Trump Taj Mahal".
51. (2018-11-29). "Hard Rock And GiG Make It Official, Will Launch NJ Sports Betting Early 2019".
52. (2019-01-25). "Hard Rock Sportsbook App In NJ Is Coming Soon, Perhaps By Super Bowl?".
53. Parry, Wayne. (June 15, 2022). "Union authorizes Atlantic City casino strike next month". Associated Press.
54. (June 16, 2022). "Atlantic City Casino Workers Vote 96% "YES" to Strike". UNITE HERE.
55. Zarroli, Jim. (May 15, 2017). "Looking Into Trump Campaign's Russia Ties, Investigators Follow The Money".
56. Brickley, Peg. (February 11, 2015). "Trump Taj Mahal Settles Over Anti-Money-Laundering Violations". [[The Wall Street Journal]].
57. (March 6, 2015). "FinCEN Fines Trump Taj Mahal Casino Resort $10 Million for Significant and Long-Standing Money Laundering Violations". U.S. Department of the Treasury: Financial Crimes Enforcement Network (FinCEN).
58. Craig Unger. (July 13, 2017). "Trump's Russian Laundromat. How to use Trump Tower and other luxury high-rises to clean dirty money, run an international crime syndicate, and propel a failed real estate developer into the White House.".
59. (February 11, 2015). "Trump Taj Mahal casino settles U.S. money laundering claims". Fortune.
60. Pagliery, Jose. (May 22, 2017). "Trump's casino was a money laundering concern shortly after it opened".
61. (1992). "Asian Organized Crime: the New International Criminal". the Permanent Subcommittee on Investigations of the Committee on Governmental Affairs, United States Senate.
62. Qiu, Linda. (March 2, 2016). "Yes, Donald Trump has been linked to the mob". [[Politifact]].
63. Gordy, Molly. (September 25, 1995). "Trump Supports Casino Suspect". New York Daily News.
64. Bump, Philip. (October 31, 2016). "A quick review of 40 years of investigations into Donald Trump and his businesses". [[The Washington Post]].
65. (April 2016). "Internal Revenue Service Information Referral and Complaint against Donald Trump".
66. (August 8, 2013). "Key Licenses Inactivity List". [[New Jersey Casino Control Commission]].
67. Cohen, Lynda. (June 7, 2010). "Pa. man admits stalking and killing Taj manager Ray Kot because Atlantic City casinos are "cheats"". [[The Press of Atlantic City]].
68. (August 11, 2010). "Taj Mahal Shooter Gets 30 Years Behind Bars". [[WCAU]].
69. Schweibert, Ray. (September 25, 2019). "Kot Never Forgotten". [[Atlantic City Weekly]].
70. Sadowski, Christopher. (September 18, 2011). "Deadly Atlantic City carjack". [[New York Post]].
71. Cohen, Lynda. (March 14, 2013). "Camden man admits shooting victims in fatal Taj Mahal abduction". [[The Press of Atlantic City]].
72. Milo, Paul. (March 31, 2016). "7 arrested in connection with shooting at Trump Taj Mahal". [[NJ.com]].
73. Rei, Maxwell. (June 22, 2018). "Atlantic City fugitive in Taj Mahal shooting arrested". [[The Press of Atlantic City]].