House always wins? The case of Trump Plaza.

[Hispo]

Good afternoon to all of you. I hope you are all having a lovely Easter and Ramandan.
The other day I was reading around Wikipedia about gambling and through my casual investigation I realized the celebrity and real state billionaire Donald Trump was also within the business of casino and luxurious resorts in the United States.
Donald Trump is specially famous not only because he managed to win the presidency of the United States, but also because of the numerous companies and enterprises he has got himself into, in the case the business of casinos.

What caught my attention about his casino is the fact it seems not to have been in the mind of the Trump organization to save the casino from its end (in comparison to other successful resorts) and it was actually demolished in the end.
One must wonder what happened for a casino of this level and category to get in bankruptcy?
Do you think this is one of the few cases when the house did not win or perhaps it had something to do with factors external to the casino snd it's management?
Have you ever heard about casinos this big failing to the point they need to be completely demolished before? Because I have not.

Source: https://en.m.wikipedia.org/wiki/Trump_Plaza_Hotel_and_Casino

On July 12, 2014, it was reported that the Trump Plaza Hotel and Casino would close on September 16, 2014, if a buyer was not found, putting an estimated 1,000 employees out of work. In early August 2014, Donald Trump filed a lawsuit requesting his name be removed from the facility, because it had fallen into disrepair, in violation of the licensing agreement for his name.

Trump Plaza closed permanently on September 16, 2014. This was the fourth Atlantic City casino to close in 2014, after the Atlantic Club, Showboat, and Revel. The closure left approximately 1,300 employees out of work.   

[Davidvictorson]

I haven't thought about Trump this week and now this brings him to mind. Lol. He may well be the first person in history whose casino goes bankrupt. Poor leadership can lead to bankruptcy of a business and being in so much debt can be as a result of poor leadership. I wonder how a casino can go bankrupt when they always win. This should be a case study in a business school. Last I heard of the Trump casino, it has been closed since 2014.

*Edit: Trump had nothing to do with the casino as his name being used. He wasn't involved in it operations. So I take my word back.

Trump cut most ties with Atlantic City in 2009 aside from a 10 per cent fee for the use of his name on what were then three casinos in the city.

Since then, all three casinos have closed or been sold.

The Trump Plaza was sold in 2014 and is now owned by billionaire businessman Carl Icahn.https://www.cbc.ca/kidsnews/post/donald-trumps-former-casino-is-being-blown-up.-heres-why#:~:text=Trump%20cut%20most%20ties%20with,by%20billionaire%20businessman%20Carl%20Icahn.

[AbuBhakar]

What caught my attention about his casino is the fact it seems not to have been in the mind of the Trump organization to save the casino from its end (in comparison to other successful resorts) and it was actually demolished in the end.
One must wonder what happened for a casino of this level and category to get in bankruptcy?
Do you think this is one of the few cases when the house did not win or perhaps it had something to do with factors external to the casino snd it's management?
Have you ever heard about casinos this big failing to the point they need to be completely demolished before? Because I have not.

House always win. There’s no way a house can lose on games that designed with house advantage plus human error distribution on players side. Casino can hit a severe bankruptcy if there’s no much player entering in the casino due to competition while their fixed expenses on running a casino is greater to their profit.

They are paying taxes and other fees too which is why operating a physical casino is very expensive and risky if there’s a lot of competitors in the area.

The rise of online casino might be another reason on why some physical casino decreases customers.

[topbitcoin]

What caught my attention about his casino is the fact it seems not to have been in the mind of the Trump organization to save the casino from its end (in comparison to other successful resorts) and it was actually demolished in the end.
One must wonder what happened for a casino of this level and category to get in bankruptcy?
Do you think this is one of the few cases when the house did not win or perhaps it had something to do with factors external to the casino snd it's management?
Have you ever heard about casinos this big failing to the point they need to be completely demolished before? Because I have not.

House always win. There’s no way a house can lose on games that designed with house advantage plus human error distribution on players side. Casino can hit a severe bankruptcy if there’s no much player entering in the casino due to competition while their fixed expenses on running a casino is greater to their profit.

They are paying taxes and other fees too which is why operating a physical casino is very expensive and risky if there’s a lot of competitors in the area.

The rise of online casino might be another reason on why some physical casino decreases customers.

I agree that the house always wins in any casino because it is they who design the rules of the game system and all forms of things that make them lose in the game they will not experience it, but talking about business does not only see that, we need to look at other aspects in seeing the development of a company, be it a casino.
In addition to problems in management that may occur such as corruption or others that make casinos lose big that have an impact on the liquidity of casino funds and make them bankrupt, and yes as far as I know casino taxes are also large in addition to the situation of customers who prefer online casinos it will have an impact on the development of offline casinos, competition is very tight because the ofline casino needs to spend more and for operations while online casinos are not like that, It is much cheaper operationally for the company, and yes most likely most gamblers switch to online casinos for their gambling activities which results in these online casinos losing revenue and in the end have to suffer losses because the operational expenditure is very large while the revenue is very small due to the impact of losing customers.

[un_rank]

This is not even directly related to casinos, cause the plaza was offering a lot more services which were the main focus at the time, the casino was not fully operational at any point in time.

There are also too many legal cases and switch in ownership that I cannot find the moral of the story anymore or how it relates to the house not winning all the time.

- Jay -

[alastantiger]

There are also too many legal cases and switch in ownership that I cannot find the moral of the story anymore or how it relates to the house not winning all the time.

The OP has a point but could have gone ahead to build on it . Are there casinos that have gone out of business? I think so. He should have highlighted it and gone ahead to state the cause for this. In the case of the above, it was more about ownership tussle like you have said. There are other things that could destroy a casino that has nothing to do with gambling but operational issues.

[decodx]

One must wonder what happened for a casino of this level and category to get in bankruptcy?

There's likely more to the story - there always is.  But an over-eagerness to line ones own pockets while neglecting the product is a tale as old as time in business.  And for casinos especially, greed can become an addiction in itself.  In the case of Trump Plaza, that addiction clearly exacted a heavy cost.

Do you think this is one of the few cases when the house did not win or perhaps it had something to do with factors external to the casino snd it's management?

From wikipedia article:

Trump Plaza's revenues took a sharp decline in 1990, due to competition from its newly opened sister property, the Trump Taj Mahal, which was a mile away.

Have you ever heard about casinos this big failing to the point they need to be completely demolished before? Because I have not.

No, I havn't. But I bet this isn't the first time something like this has happened, and it probably won't be the last.

[Die_empty]

What caught my attention about his casino is the fact it seems not to have been in the mind of the Trump organization to save the casino from its end (in comparison to other successful resorts) and it was actually demolished in the end.
One must wonder what happened for a casino of this level and category to get in bankruptcy?
Do you think this is one of the few cases when the house did not win or perhaps it had something to do with factors external to the casino snd it's management?
Have you ever heard about casinos this big failing to the point they need to be completely demolished before? Because I have not.

Donald Trump is well known for business malpractices and tax invasions. He has been accused of inflating the worth of his companies to deceive investors or increase his debt in some cases to invade tax. There were reports that he put in little of his money but collected millions as bonuses and salaries while he shifted debts to investors. He was just a smart man who used the casino as an avenue to invade tax and cheat investors. I don't think he was passionate about the casino business which might be why the it failed.

*Edit: Trump had nothing to do with the casino as his name being used. He wasn't involved in it operations. So I take my word back.

Donald Trump was the owner of The Trump Plaza Casino and Hotel which was founded in 1985 until the company went bankrupt. It was in August 2014 that Donald Trump got a court judgment that removed his name from the company's casinos. Before the judgment, he was fully involved in the casino business.

[adultcrypto]

What caught my attention about his casino is the fact it seems not to have been in the mind of the Trump organization to save the casino from its end (in comparison to other successful resorts) and it was actually demolished in the end.
One must wonder what happened for a casino of this level and category to get in bankruptcy?
Do you think this is one of the few cases when the house did not win or perhaps it had something to do with factors external to the casino snd it's management?
Have you ever heard about casinos this big failing to the point they need to be completely demolished before? Because I have not.

House always win. There’s no way a house can lose on games that designed with house advantage plus human error distribution on players side. Casino can hit a severe bankruptcy if there’s no much player entering in the casino due to competition while their fixed expenses on running a casino is greater to their profit.

I am in the same side with you on this because casinos are designed to favor the owners(I do not have any evidence to support this, just my observation). I find it strange that casino will be bankrupt, not even a big casino like the one being described and with big names involved, names that will put confidence in the heart of rich people to use the casinos. Maybe it is possible there could be sabotage from the inside, a case of leaking of insider information to cripple the casino.

The rise of online casino might be another reason on why some physical casino decreases customers.

This should be the biggest threat casinos are facing now. The number of people visiting physical casinos have reduced and the people visiting are mostly low income owners. I am speaking with respect to my location. The growth of online casinos he is fast and most casinos are now paying more attention to their online platforms. This could possibly be part of the reason for the collapse of this casino.

[bangjoe]

There are also too many legal cases and switch in ownership that I cannot find the moral of the story anymore or how it relates to the house not winning all the time.

The OP has a point but could have gone ahead to build on it . Are there casinos that have gone out of business? I think so. He should have highlighted it and gone ahead to state the cause for this. In the case of the above, it was more about ownership tussle like you have said. There are other things that could destroy a casino that has nothing to do with gambling but operational issues.

We can't see that the house loses and the casino goes bankrupt or that the house never loses and the casino can't go bankrupt, there are many factors that can cause a casino to go bankrupt like what you said, maybe on tea managerial issues, losing competitiveness and many more factors that can make the casino go out of business. The house not losing is not a guarantee that they will not go bankrupt.

The business world is not that simple, there are many things that can cause a business to go bankrupt. The house never loses does not guarantee that a casino will never go bankrupt, a simple enough sentence but we don't look at just one aspect that makes it strong so we forget that the big line lies on the other side.

[alegotardo]

What caught my attention about his casino is the fact it seems not to have been in the mind of the Trump organization to save the casino from its end (in comparison to other successful resorts) and it was actually demolished in the end.
One must wonder what happened for a casino of this level and category to get in bankruptcy?
Do you think this is one of the few cases when the house did not win or perhaps it had something to do with factors external to the casino snd it's management?
Have you ever heard about casinos this big failing to the point they need to be completely demolished before? Because I have not.

In my opinion, the problem is not with the casinos, but with Trump, who did not know how to conduct his business well, as the President of the United States has a long history of failures on his resume. Six of his companies have already filed for bankruptcy. His Taj Mahal casino in Atlantic City declared bankruptcy in 1991. Two other Trump casinos also went bankrupt, along with the Plaza Hotel in New York. Trump Hotels and Casinos Resorts declared bankruptcy in 2004, with a debt of US$1.8 billion, in addition to Trump Entertainment Resorts, which went bankrupt in 2009.
Is it a coincidence? I don't think so!

Remembering that Trump used dishonest practices from the beginning, because to attract an entertainment company to invest in the construction of his casino, he invited executives from the company Harrah's, owner of the Holiday Inn hotel chain, to visit land already acquired and He ordered that, during the visit, his employees pretend that the land was an active construction site. Workers dug holes in the ground and pushed wheelbarrows back and forth for no reason as Harrah’s executives watched.

[Slow death]

a casino is also a business and in all businesses it has operational costs, in the case of casinos although they always win when it comes to games of chance, they still have many operational costs like for example in a physical casino and the owner of the physical casino pays electricity and if you look, you will notice that inside the casinos they have a lot of lights, they have a lot of machines, electricity consumption is very high in physical casinos, in physical casinos they pay for water. They pay a construction company to maintain the casino building. in the physical casino they pay taxes to the governments every month, in the physical casinos they pay salaries to the employees, which are many employees in the physical casinos. We probably won't see news of casinos being demolished

Because in most cases of bankrupt physical casinos, they are sold and the future owner modifies the building and runs another business, unlike this Trump case. So the fact that the house always wins is not something that would prevent a casino from going bankrupt. With many casinos that exist today, running the casino business involves many challenges, customers may be few and the casino may have little profit and at the end of the day it may go bankrupt. This applies to physical casinos and online casinos, and that's why the owners of physical casinos now have hotels and inside their hotels they have casinos because that way they can make a profit from tourism.

[ChiBitCTy]

This is pretty typical of businesses that Donald Trump runs.  I haven't really made it a secret that I absolutely despise the "man" that is Donny T, but this isn't a political post, this is about gambling and that's one thing that I never understood.  How the heck can you bankrupt a business where you're guaranteed to come out on top.  I have no idea how popular the casinos was however, so assuming that played a role in it.

[Eternad]

This is not even directly related to casinos, cause the plaza was offering a lot more services which were the main focus at the time, the casino was not fully operational at any point in time.

There are also too many legal cases and switch in ownership that I cannot find the moral of the story anymore or how it relates to the house not winning all the time.

- Jay -

As I understand the real intention of OP. He is questioning the saying "the house always wins" due to this Trump Plaza was previously a casino that shut down and took over so he is questioning if the house always wins then why the previous casino shut down and why did the new owner doesn't bother to save the casino instead it rebuilt for another purpose.

House always win. There’s no way a house can lose on games that designed with house advantage plus human error distribution on players side. Casino can hit a severe bankruptcy if there’s no much player entering in the casino due to competition while their fixed expenses on running a casino is greater to their profit.

They are paying taxes and other fees too which is why operating a physical casino is very expensive and risky if there’s a lot of competitors in the area.

The rise of online casino might be another reason on why some physical casino decreases customers.

Yes, No doubt about this, Casinos always win against players but casinos real opponent in their business is their operational cost which is too costly while their income is decreasing due to few players.

[LUCKMCFLY]

Well, it doesn't seem strange to me, Donald Trump has always been lying like hell, his hotel chain, his casino, maybe he preferred to leave the casino business because they needed a lot more money to get into politics, he is an investor and you can't deny that he has a high Financial education, he is one of those businessmen who always gives his lectures with very good financial advice, for me in that sense he is very good, he still has many things to do, in fact he Caught my Attention Because Trump in his life He didn't want to be a politician or anything like that, it just occurred to him and he managed to be president, so what I can learn the most from him is his way of focusing on things to achieve them.

Only he knows why he declared Bankruptcy, Trump has many Mysteries and he is also a very impulsive person, Trump's change of plans is just that he and God know , what I Know is that if he Decided to do Without the casino it is Because he had Something much bigger in mind.

[uneng]

One must wonder what happened for a casino of this level and category to get in bankruptcy?

I can't say anything about this case in particular, but it's not impossible for a casino of this height to bankrupt. Keep in mind the more you have, and the more sophisticated your businesses become, more expensive are going to be the maintenance costs to keep it working. There are a lot of recurrent expenses to pay in order to keep a casino like that operating: employees, taxes, repairs...

Do you think this is one of the few cases when the house did not win or perhaps it had something to do with factors external to the casino snd it's management?

I'm sure it has something to do with external factors.

Have you ever heard about casinos this big failing to the point they need to be completely demolished before? Because I have not.

Yes, there are other casinos on the same situation as well. After COVID pandemic, many businesses struggled to continue operating and decided to shut down their services. I believe to run a land based casino is much more challenging than managing an online platform.

Three Las Vegas-Area Casinos to Be Demolished for Land Sales

[hyudien]

From what I know so far, the factors that cause land-based casinos to go bankrupt are usually management that is no longer in line and also when management changes, there is a lot of disagreement. The case of Trump Plaza is not much different because during the process Trump may need more funds to develop this casino in addition to his need to spend on political costs.

*Edit: Trump had nothing to do with the casino as his name being used. He wasn't involved in it operations. So I take my word back.

you might be missing something : Owner Trump Entertainment Resorts

https://en.m.wikipedia.org/wiki/Trump_Plaza_Hotel_and_Casino

and this : Trump Entertainment : Donald Trump (founder)

https://en.m.wikipedia.org/wiki/Trump_Entertainment_Resorts

[Doan9269]

Good afternoon to all of you. I hope you are all having a lovely Easter and Ramandan.
The other day I was reading around Wikipedia about gambling and through my casual investigation I realized the celebrity and real state billionaire Donald Trump was also within the business of casino and luxurious resorts in the United States.
Donald Trump is specially famous not only because he managed to win the presidency of the United States, but also because of the numerous companies and enterprises he has got himself into, in the case the business of casinos.

What caught my attention about his casino is the fact it seems not to have been in the mind of the Trump organization to save the casino from its end (in comparison to other successful resorts) and it was actually demolished in the end.
One must wonder what happened for a casino of this level and category to get in bankruptcy?
Do you think this is one of the few cases when the house did not win or perhaps it had something to do with factors external to the casino snd it's management?
Have you ever heard about casinos this big failing to the point they need to be completely demolished before? Because I have not.

Source: https://en.m.wikipedia.org/wiki/Trump_Plaza_Hotel_and_Casino

On July 12, 2014, it was reported that the Trump Plaza Hotel and Casino would close on September 16, 2014, if a buyer was not found, putting an estimated 1,000 employees out of work. In early August 2014, Donald Trump filed a lawsuit requesting his name be removed from the facility, because it had fallen into disrepair, in violation of the licensing agreement for his name.

Trump Plaza closed permanently on September 16, 2014. This was the fourth Atlantic City casino to close in 2014, after the Atlantic Club, Showboat, and Revel. The closure left approximately 1,300 employees out of work.  

There could be many reasons for the closedown of a gambling casino, some people may see it as a non profitable business anymore and thereby close down the casino for other thing, some may consider their reputation and what others may say concerning what they have as an establishment in other not to make such tarnish their reputation s well as been a source of weak point for their opponents to strike at them, so i will not like to adopt the fact that it was the loss on house edge that caused this closedown.

[decodx]

Have you ever heard about casinos this big failing to the point they need to be completely demolished before? Because I have not.

Yes, there are other casinos on the same situation as well. After COVID pandemic, many businesses struggled to continue operating and decided to shut down their services. I believe to run a land based casino is much more challenging than managing an online platform.

Three Las Vegas-Area Casinos to Be Demolished for Land Sales

I can imagine that to be true. I mean, yeah it seems kinda weird more regular casinos haven't jumped on the online bandwagon.  Running an actual building has gotta cost a freaking fortune - rent, staff, security guards.  It's a real headache.  The online thing just seems easier and  and you can get people all over playing not just whoever can make it into the casino that day.   

But I guess some of the old school casinos are probably kinda freaked out about competing with the resto of the online platforms.  Still seems short-sighted if you ask me.  Seems like itd be smart to let people play the same games online if they can't make it out to their favorite slots or table games.  Win-win, right? 

Anyway, online casinos are probably the future whether the big guys like it or not.  More convenient for everyone.  The physical places will still get the die hards and tourists and stuff.

[Gozie51]

This is not even directly related to casinos, cause the plaza was offering a lot more services which were the main focus at the time, the casino was not fully operational at any point in time.

I also think that because of the other outlets of businesses under it could be a reason it failed.

Another is that at the time casino business may not have been a very big business as it is now with the growth in the game including the use of cryptocurrency and Blockchain that gave the players may freedom and privacy . So I'm sure if it were this time around, whoever is managing it won't allow the casino part to go down. Of course the house always wins and that means with the rate of patronage more capital will be generated to run the casino.

However, there are more to this story like I wonder why Trump would file a case to remove his name from business or is he being impersonated or he had a time limit to use his name on the contract that has expired