Trump bumps Gary
Trump bumps Gary
Trump sells Indiana property to Majestic Star
In an effort to acquire more funds to continue to reinvigorate its Atlantic City properties, Trump Entertainment Resorts reached a deal in November to sell its Trump Indiana riverboat casino in Gary, Ind. to Majestic Star Casino LLC.
After lengthy negotiations involving the sale price, Majestic Star agreed to a $253 million total purchase price. Trump will garner $227 million from the deal after taxes, fees, closing costs and other sale-related expenses are subtracted. That amount will be added to the $500 million in additional financing the company received after its recent bankruptcy.
"We certainly have wonderful plans for Atlantic City, Chairman Donald Trump told the Press of Atlantic City. "Now we'll decide what we want to do."
Trump's three Atlantic City properties-Trump Taj Mahal, Trump Plaza and Trump Marina-are already enjoying some post-bankruptcy renovations. New developments could include significant expansions. One plan, which has already been discussed, is adding a new hotel tower to the Taj Mahal.
Trump Indiana was a solid operator for Trump Entertainment Resorts, but it was never viewed as part of the company's core business by analysts and gaming industry observers. At a cost of $130 million to build, the $253 million sale price was seen as a testament to the property's strengths.
"We got the price we wanted," Trump said.
Majestic Star's flagship property, the Majestic Star Casino, shares a dock with the Trump boat-the only two casino operators in Gary. It is expected that Majestic Star will consolidate both boats together into one gaming venture.
Trump recently pulled out of plans to develop a casino complex in the southern Indiana community of French Lick, citing high tax rates and the potential for too much competition. Trump denied his company's decision had any impact on whether to sell the Gary property as well.
"We had great respect for the people of Indiana and had loyal customers," he told the Press. "I think it was a very nice place."
-Andy Holtmann
Trump sells Indiana property to Majestic Star
In an effort to acquire more funds to continue to reinvigorate its Atlantic City properties, Trump Entertainment Resorts reached a deal in November to sell its Trump Indiana riverboat casino in Gary, Ind. to Majestic Star Casino LLC.
After lengthy negotiations involving the sale price, Majestic Star agreed to a $253 million total purchase price. Trump will garner $227 million from the deal after taxes, fees, closing costs and other sale-related expenses are subtracted. That amount will be added to the $500 million in additional financing the company received after its recent bankruptcy.
"We certainly have wonderful plans for Atlantic City, Chairman Donald Trump told the Press of Atlantic City. "Now we'll decide what we want to do."
Trump's three Atlantic City properties-Trump Taj Mahal, Trump Plaza and Trump Marina-are already enjoying some post-bankruptcy renovations. New developments could include significant expansions. One plan, which has already been discussed, is adding a new hotel tower to the Taj Mahal.
Trump Indiana was a solid operator for Trump Entertainment Resorts, but it was never viewed as part of the company's core business by analysts and gaming industry observers. At a cost of $130 million to build, the $253 million sale price was seen as a testament to the property's strengths.
"We got the price we wanted," Trump said.
Majestic Star's flagship property, the Majestic Star Casino, shares a dock with the Trump boat-the only two casino operators in Gary. It is expected that Majestic Star will consolidate both boats together into one gaming venture.
Trump recently pulled out of plans to develop a casino complex in the southern Indiana community of French Lick, citing high tax rates and the potential for too much competition. Trump denied his company's decision had any impact on whether to sell the Gary property as well.
"We had great respect for the people of Indiana and had loyal customers," he told the Press. "I think it was a very nice place."
-Andy Holtmann
