Atlantic City - Trump Plaza sold for $20 million

http://www.usatoday.com/story/money/business/2013/02/14/trump-plaza-sold-20-million/1920965/

That's just over half of what Trump Marina sold for two years ago.

"It has become the worst-performing casino in town in terms of casino revenue. Last month, Trump Plaza took in less than $4.9 million, a decline of more than 40 percent from a year ago."

I know AC has been struggling, but I didn't realize it was as bad as this.

 

Not surprised. This property in recent years, has always been a dump. They have put no money into the property at all, and just like the marina, have let it fallen into utter decay. You have to spend money to make money. It's a simple fact of this business. It's too bad because if they actually cared for the Plaza property it would probably do quite well given it's perfect location.

I'm excited to see what the new company who takes over does with it.

 

I've been going to AC since I was a kid. I remember when the Taj opened and it was such a cool and amazing looking thing (at least to a kid). But for a long time now all of the Trump properties have just been shitholes. They are the most depressing casinos to walk around inside. I honestly believe that the Trump casinos did more to hurt the image and ambiance of AC over the last couple of decades than the other way around. All those properties being sold to another operator can only be a good thing for the city. If you think about it, the upswing in the quality of AC happened because of the Borgata. They raised the bar. It wasn't like they came in and rode the wave, they created it.

Oh and if anyone questions whether the Trump casinos really suck just know they actually offer $1 blackjack. Yup, $1. And you pay a 25-cent commission on every hand to play! So not only is it the lowest limit BJ game in the world, its the absolute worse casino game in the world in terms of house edge. And at least when I walked through the casino the table was pretty full. Crazy....

 

It will be interesting to see what happens in the next few years as Governor Christie has kicked off a drive to restore business to Atlantic City. The "theft" of Miss America from Las Vegas is one of the first salvos in this battle. Expect to see other significant efforts to follow.

Will it all work? Maybe. They know they need to do something because state revenues are tanking from years of no business growth and many years of out-migration. New Jersey is going to be bankrupt if it does not turn it around. The revenues from a revived Atlantic City would go a long way in filling the coffers.

Bill

 

For $20 Mil I would have bought it. The place really isnt that bad. Its anchored by a nice Rain Forrest Cafe, that I dont think the Jersey crowd goes to but its nice. The casino was narrow but a decent selection of old and new games. The dining was OK as well. I liked it. But I was always alone in there while the CET joints were packed. The location isnt great to casino hop but its close enough to CP to drop in.

I just dont like their lobby. It looks like an office building from the 70's with floor to ceiling gray marble.

 

The economy of New Jersey is diverse and not dependent on gaming. Carl Ican owns $210 million in debt on Trump Entertainment and must give his approval for the sale to go through.

To put things in perspective in AC, Revel was built for $2.4 billion and before it opened, Morgan Stanley wrote down its $1.2 billion investment by 98%.