House always wins? The case of Trump Plaza.

[bluebit25]

The house never fails to maintain its advantage in the games. This advantage is determined by the rules of the game, the odds and how the game operates. One such game is blackjack, which gives the house an advantage of about 1% over the player.

Furthermore, it should be noted that players can often make mistakes that will eventually cause them losses. These errors can stem from a lack of understanding of the game's principles, an excessive desire to win money at any cost, or for example, wrong strategy.

Although casinos have many expenses in the form of rent, staff salaries, security, and equipment maintenance, this can be a significant factor on which a casino's profitability depends heavily, especially if Number of customers is not enough. Besides, they also have to compete if there are other casinos in the area

[1714623615]

1714623615

[Hispo]

Thanks all for your replies. Actually, I had not done much research on this specific case about the Trump Casino and simply thought it was fascinating to see a casino and resort being demolished after so much time of operation, because how we all are accustomed to hear the house does not lose money, specially in the long term.
At first I thought this casino was not directly under the management of Trump and his organization, though, it seems there was indeed some involvement beyond the usage of the name of Donald Trump. 

You know, within his political career, it has been said Trump has had baducknim any business he had tried, besides of Real state; he has tried to get into the business of alcohol beverages, He tried to found his own University, he also had his own brand of water and ice and of course gambling.
It seems he does not have much of luck for anything beyond politics and real state. Some could argue he does not have much of luck with women either, because of the rumors on his marriage.

Anyways. This house could have indeed lost for other different reasons beyond the profits of their gambling volume. 

[swogerino]

It is a rhetoric question I believe  ,I played all day up until night today and in different casinos I never felt the joy of winning,the only feeling I felt was the bitter feeling of losing deposit after deposit in all the so called reputable casinos which I think are changing the RTP as there is absolutely no way to be like that unless I am the most unlucky person in the world,it looks like that for sure and I feel very sad today yet I am very strong and I did this test on purpose to verify my way of getting out of gambling which appears to be the right thing to do nowadays.

My conclusion is that nowadays because of the bad economy also the casinos are suffering this from lower profits generated and thus making all people lose money,simply put don't gamble guys or if you do stfu and accept any outcome of your games.

[serjent05]

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.

According to the article the decline of the stated casino is due to the establishment of its sister company, the Trump Taj Mahal. It is more likely cannibalism since its sister company possibly won the interest of the Trump Plaza players leading to the decline of the Trump Plaza.  This is more on the management than the player winning over the house.

The not wisely planned purchase of properties around the casino also help in the bankruptcy of Trump Plaza, I think the management bites more than they can chew since they keep on spending money to acquire new properties while their currently acquired properties do not give them a good profit.

[alani123]

Trump plaza was a case of notoriously bad management but also corruption from the side of banks.
The data Trump submitted to loan for the creation of this company was exaggerated. The bankers that loaned to him were very greedy. Even though they could see through the fakery of the documents submitted by trump and his cronies, they went ahead to provide loans to his organization.

Trump's actions lead so many people to ruin. Contractors, companies, employees... In a way I'm sure these people wouldn't be sad to see part of his property seized in New York, even though it's a bit of Democrat theatrics.
The thing is that this business failed because of lack of demand on the hotel side. Maintenance and loan costs were too high, and most rooms empty. The casino side probably was earning more than costs, but couldn't cover everything.

[SamReomo]

Every business has to face some difficult times and same happened with Trump Plaza. It's actually first time I'm hearing about Trump Plaza, but after reading about it I found that the plaza was a huge business back in the time when it was operating.

If we check more about Donald Trump as a person then I'm sure most of us will understand that he's one of the most iconic businessmen of the centaury because he tried many businesses and got success in those, however the Trump plaza is among his failed businesses that he also might regret to operate.

[coin-investor]

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

Davidvictorson, already provided the information that Trump has nothing to do with the casino they used his name to become a popular casino, and in turn, Trump got a share of the revenue, that's the easiest way for Trump to make money out of his reputation so he has nothing to regret if it has blown up.
And in the question of the house always winning, they have the house edge so they are on the advantage against every player.

It's not their edge but the competition among casino owners especially in online casinos, big and well-established casinos are eating up the newly launched and small casinos and if the small casinos cannot keep up with the promotion they will likely close, same goes with physical casinos, they need to keep old clients coming back and new players coming in.

Online and offline casinos are profitable provided they can keep up with their marketing there's an influx of new players and they can maintain their reputation.

[Wexnident]

~

Seems like Trump was just an investor plus a sort of spokesperson for the casino. Anyhow, there are a LOT of aspects of how a business can simply fall out of the competition imo. The simplest answer would simply be corrupt practices, thereby attracting close to zero positive revenue to the casino or just plain out lost in terms of competition. Can't exactly pinpoint what since I don't know how the business worked in the first place plus the competition of the area around it.

Businesses come and go so it's really nothing new. Especially in cases of a casino (or just an entertainment plaza in general), which rely on people wanting to go there, which increases the risks involved compared to say, businesses that are involved in selling goods.

[Poker Player]

When it is said that the house always wins it is because of the big numbers. For the house, to run casino games that have an HE is EV+. But a casino is a business like any other and to keep it running other factors come into play, such as being able to attract enough customers to spend enough. Plus as mentioned Trump plaza was not just a casino.

[danherbias07]

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.

Thank you for this. Because I also thought that Trump owned that business.
Since that explained remarkably well I guess I will just focus on the question of OP.

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.

Management will be one cause of bankruptcy. Because I truly doubt it will be because of the wrong house edge. We cannot win against the house, that's the sacred rule of a casino that will never be bent. There will always be money coming in for the gambling platform, physical or online.
I also doubt that it will be because of a lack of clients, customers, or gamblers. The gambling industry has been growing for the last few years so there will always be customers that will visit either the hotel or the gambling place.
Another case that could ruin a business like this is if investors are pulling out. We all know that it's not just one owner, there will always be investors that will buy a share and if they are gone, it could mean the fall of the business without money coming in or supporting it.

[len01]

-snip

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.

since I have played in the world of gambling, I have never seen a casino go bankrupt just because it was defeated by gamblers.
but I often hear of land based casinos or online casinos closing casinos simply because poor management causes a lot of debt and is unable to pay back the loans so the casino has to sell or close the casino.
in the case of the Trump Plaza casino, I had never heard of this casino before but I became curious after knowing this news and finding out about all the things that prompted the casino to choose to close the business but it seems to have been answered by other people here and the point is that the casino could went bankrupt but was not caused by the gamblers but was driven by other factors that caused the casino income and expenses to be unequal.

[Hirose UK]

Gambling is profitable business so it is not surprising that rich people make gambling one of the businesses they are involved in, especially if in country that already has legal permits for gambling, everything will be easier.

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.

Closure of Trump Plaza was actually not the cause of bankruptcy but because of problems that occurred and caused bad reputation.
And indeed everyone who knows gambling and really knows about Trump Plaza must be wondering and confused as to why casino of this size and which had clearly developed so well experienced collapse and had to be closed permanently.
If this is related to the house always winning then that is not true because the problems that arose and caused Trump Plaza to close were not due to bankruptcy caused by the winnings of the gamblers.

[entertheabyss]

Every business has to face some difficult times and same happened with Trump Plaza. It's actually first time I'm hearing about Trump Plaza, but after reading about it I found that the plaza was a huge business back in the time when it was operating.

If we check more about Donald Trump as a person then I'm sure most of us will understand that he's one of the most iconic businessmen of the centaury because he tried many businesses and got success in those, however the Trump plaza is among his failed businesses that he also might regret to operate.

There's no solid chances than watching your own personal business grow to become steady stream of income for one. Atleast there will be stress for making money but it's done within your reach and not for some random persons. Every business faces challenges and some come out alive and stronger while some are dismantled following their instability to withstands the obstacles coming. Donald Trump is included in the lists for the powerful men in the world, making life accomplishments with businesses and investments around the world, also in politics and one time president of the United States of America who are world power, he's still coming to run again for presidency.

[wiss19]

Since, it was a plaza offering more services and not just a casino, I wouldn't say the reason for its closure was because the house couldn't win enough but it was most probably because of a lack of proper management and other issues, maybe legal issues were involved as well. I'm saying this because I'm not aware of this and have no knowledge about it, but all I know is that a casino cannot get closed down because of losing, they don't lose more than they win, that's how casinos and gambling work.

A casino would always have enough funds so that they can compensate the winners that are playing on each table available, and they calculate the wins based on the highest bets so that they don't go bankrupt because of a player hitting a big win.

[qwertyup23]

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.

There are lots of issues that revolved around Trump Plaza that lead to its bankruptcy.

If I recall correctly, during the early years of gambling, Atlantic City was one of those gambling havens that started the casino run, with Las Vegas being the number one city for gambling. Despite its growing popularity over the years, it substantially hit a growth slump with tourists not visiting such city/country. Along with the COVID and popularity of online gambling, the gambling empire of Trump was constrained to file for bankruptcy.

Not to mention, with all the legal battles and challenges that was revolving Donald Trump, most people would have preferred to gamble somewhere else. Before, his name carries great power and financial stability- but nowadays people view his name with legal disputes and challenges.

With all things considered, these are just some of the factors on why his gambling empire fell.

[crwth]

Maybe there's more to the story of why it became bankrupt. There's some scandal or cheeky or shady operations stuff and the only way out is filing bankruptcy? The house definitely did not win here and maybe it's just closing a chapter on Trumps love or something.

[wheelz1200]

This had nothing to do with the house losing.  Trump strategically claims bankruptcy at his properties to help with taxes etc.  Casinos like this always win because slots are one of the biggest attractions and they can set the win percentage.  The casino was just old and with other new casinos coming in, it wasn't worth it to upgrade the casino.

[Solosanz]

Business is business, risk is inevitable in business.

If casino is a zero risk business i.e. anyone who run casino will always profitable, most people will start their own casinos without worrying anything since they will earn money easily.

Big casino has still a chance to fail, it just the chance is really low compared to fairly new casinos.

[betswift]

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?

The story of Trump Plaza Hotel and Casino reflects the ups and downs of Atlantic City's casino sector and Donald Trump's business dealings. Trump's direct role decreased over time due to financial adjustments and legal matters. The saying "the house always wins" shows its limits when external challenges and internal management decisions impact casino operations. Trump Plaza's closure and demolition underscore  the importance of adaptability and effective management in business.

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

The phenomenon of large casinos failing and being demolished isn't unique to Trump Plaza. Im sure if we serch we find another examples. But just because Trump's name has been highly prominent in public discourse, the story has received considerable attention in the media.

Its just shows the ever changing nature of the entertainment and hospitality industries, where adaptability and innovation are key to survival and growth.

[Webetcoins]

When it is said that the house always wins it is because of the big numbers. For the house, to run casino games that have an HE is EV+. But a casino is a business like any other and to keep it running other factors come into play, such as being able to attract enough customers to spend enough. Plus as mentioned Trump plaza was not just a casino.

Yeah, we should say for a number of reasons. You already hand out a couple of them. House edge must be the primary source of a casino to exist longer but I already saw some casinos who have no house edge. They probably have other means to sustain their operations like they advertise a brand or something.

A good business or a casino can attract lots of customers but in order to become good, they may need to have enough budget first and spend it like crazy on different things like promotion for example. Trump plaza is too huge for only just a casino, plus its name is also a plaza which mean a place where people can walk and relax but I think they also offer a hotel and restaurant service.