With Atlantic City facing many changes over the past few years, and losing many of its casinos, the latest Trump Taj Mahal closure is yet another hurdle for the once thriving gambling destination. It will serve as the fifth closure in just two years.
While the threat of its closing has been looming over the city for quite some time now, Tropicana Entertainment, the casino’s management firm, announced that it will officially be closing after Labor Day. Its closure follows on the heels of its failure to come to an agreement with its employees, who have been on strike for weeks. Its closure will result in over 2,800 workers being laid off.
As the city’s finances are highly reliant upon casino revenue, the Taj Mahal’s closure will only further pressure on its current state.
As reported on news website, NJ.com, credit rating agency, Moody’s Investors Service, commented “The financial position remains dire given its dependence on a shrinking casino industry.”
Though the city’s casino stand to receive a portion of the Taj Mahal’s revenue, an overall decline in revenue is expected, nonetheless.
Just this past May, Governor Chris Christie inked a rescue package, giving Atlantic City officials through November to produce a financial plan of action for the next five years. If they fail to do so, the state will then have the jurisdiction to take over large portions of the municipal government.