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(Associated Press) - THE OWNER of the struggling Trump Taj Mahal Casino Resort filed court papers yesterday saying it will close by next month, making it the fifth of the city's 12 casinos to shut down this year.
Trump Entertainment Resorts said in a Delaware bankruptcy court filing obtained by The Associated Press that its board has approved a shutdown of the casino by Dec. 12. It had threatened to close by then if its main union didn't drop its appeal of a court-ordered cost-savings package.
Yesterday, the indicated time was up. The company said in court papers the closing will happen because it has not received the state and local tax breaks it sought.
"Due to the fact that the debtors had not obtained the tax relief and incentives they sought and did not expect that they would receive assistance prior to [a Nov. 10 bankruptcy court hearing], the debtors advised the Division of Gaming Enforcement of their intention to wind down operations of the Taj Mahal and to close the property on or about December 12, 2014," the company wrote. "The debtors have initiated appropriate steps to cease operations at the Taj Mahal consistent with that time frame."
Atlantic City has been caught in an eight-year downward spiral caused mainly by the proliferation of casinos in neighboring states. When the first Pennsylvania casino opened in late 2006, Atlantic City's annual casino revenues were $5.2 billion. Last year they were $2.86 billion, and will be significantly less this year.
A panel appointed by Republican Gov. Chris Christie is recommending ways to help the city and its remaining casinos, including tax relief, additional aid and an emergency manager to help tame the city's finances.
