Atlantic City Casino Industry Fate At Stake As Trump, Icahn, Battle

Donald Trump and Carl Icahn are two billionaires that do not like to lose when it comes to business. That is why their face-off in US bankruptcy court on Tuesday has an entire nation following along.

At stake in the legal battle is control of three of Atlantic City's eleven casinos. Trump Entertainment owns the casinos, but Trump and Icahn are both part of separate groups that would like to buy the company out of bankruptcy.

The future of the AC casino industry could hang in the balance. Trump believes that the industry could bounce back from the recent slump it has experienced, and Icahn has already shown his willingness to buy into the same concept.

The battle for control has been highly contentious. That is expected when two business heavyweights enter the ring. Icahn has partnered with Andy Beal, a high stakes poker player and a Texas banker. Trump has teamed with his daughter, Ivanka, as well as the bondholders of Trump Entertainment.

In recent years, Trump has hinted of a return to the AC casino industry. He left the industry when he initially wanted to buy a majority stake in Trump Entertainment and was turned away. At that time, he stepped down from the company's board of directors.

Atlantic City casinos have experienced declining revenue for much of the past two years. Making things more difficult for the industry to rebound is the increased competition that it faces from surrounding states.

Pennsylvania has made the biggest push, passing AC casinos in slot revenue for December, and legalizing table games. The table games are expected to be operational sometime this summer at many of the state's casinos.

February 23, 2010
Posted By April Gardner
Staff Editor, CasinoGamblingWeb.com
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