Trump Entertainment Resorts Plans to File a Bankruptcy Case Again This Week

by San Antonio Attorney

Trump Entertainment Resorts Inc. is going file for bankruptcy protection again this week. If that happens, it will become the fifth casino in Atlantic City, New Jersey at risk of shutting down.

Last year, the city’s revenue from the casino industry dropped to $2.9 billion. The highest revenue was in 2006 when it earned $5.2 billion. The decline means fewer funds for the state, which takes an 8 percent tax from gambling establishments and uses the money to programs for the disabled and elderly people.

Lawmakers are making efforts to save New Jersey’s waning casino industry. They have proposed to permit slot machines in the northern part of the state. As early as November 2015, voters could be asked to abolish a very old law that afforded Atlantic City a casino monopoly in New Jersey.

Senator Raymond Lesniak hopes that it would sustain the troubled city considering that lawmakers can direct new income there.

The growth of legalized gambling in New York, Pennsylvania and Maryland caused the city’s declining revenue for seven years in a row. The real-estate taxes and high labor costs have also constrained the city’s profits.

Trump Entertainment Resorts is the owner of two casinos in New Jersey. It was founded by billionaire Donald Trump, but he no longer manages the company since 2009.

Trump Plaza is scheduled to stop its operations next week, and the Trump Taj Mahal will probably close in November. The Trump Taj Mahal lost millions of dollars in revenue in the first half of this year, based on a filing with the Division of Gaming Enforcement. Other casinos that closed this year are the Revel Casino Hotel and Caesars Entertainment Corp.’s Showboat.

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