We’ve already seen four casinos close in Atlantic City and Carl Icahn is
threatening to raise the ante to six. In a highly confrontational move, he’s demanding further concessions at the Tropicana Atlantic City from union Unite-Here, plus tax breaks from Atlantic City and Atlantic County, and a $25 million subsidy from the Casino Reinvestment Development Authority. That’s a mighty ambitious wish list but Icahn never thinks small. Union boss Robert McDevitt responded, “We’re not going to ignore the incestuous relationship between these two operators. While the other casinos agreed to extend the contract for six months to give everyone time to deal with the absolutely horrible problems of this summer, Tropicana has chosen to strip-mine the union contract and destroy the quality of life in Atlantic City.”
Already, Icahn has let it be known to employees that he wants them to forfeit their pensions in favor of a 401(k). He’d also like to shove them off their health plan and onto the mercies of the Affordable Care Act. The former may not be a sticking point — Unite-Here already made that concession at the Trop — but the latter apparently is, stirring up a hornet’s nest. In requesting the cuts, Icahn’s attorney called further investment in the Taj “a questionable business decision.” Union members responded, “No health care, no peace!”
“We fought too long and too hard for this coverage to give it up. Most of our members are 45 or older and this is the time in our lives when we need health care coverage the most,” said Taj cook Charles Baker. In a rare public utterance, the delphic Icahn said, “I saved the Tropicana. They won’t tell you that. I risked $100 million when no one else would do it and that’s why they have jobs today. The patient is on its death bed and rather than helping it, they’re whacking it in the head.”)
In a classic case of taking from the poor and giving to the rich, Trump Entertainment Resorts (with Icahn’s loose consent) is demanding mind-
boggling reductions in its property tax. Trump Plaza‘s bill would go from $248 million to $40 million while the Taj (already delinquent by $20 million) would see a 70% reduction of its $1 billion. Not surprisingly, Mayor Don Guardian responded, “Given the difficult economic situation in Atlantic City, we are not in a position to accept these requests. The heavy concessions requested for the Trump properties, including the Taj Mahal, are not acceptable. Everyone needs to pay their fair share of taxes, including the casinos.”
According to the New York Post, TER plans to stop investing in the Taj — that’s the spirit! — as part of its turnaround strategy. (In another reassuring 
development, the Taj’s fire-suppression contractor wants out, saying it is owed $250,000.) It would save $8,000 per employee per year if dumps the healthcare benefits, though it would be fined $2,000/employee/year under the ACA. As McDevitt likes to point out, that would make a minimal dent in TER’s liabilities, which could be as great as a half-billion dollars. Icahn rejoins that the Taj is losing $7 million a month without even paying its property taxes and defaulting on its interest payments. Kinda makes you wonder why Icahn wants the place.
Donald Trump has been running his yap about buying the Taj but, wish so many liabilities attached, I’ll believe it when it happens. (Trump is so out of touch he thinks he can still get into the Philadelphia casino market.) Meanwhile, the mutual intransigence of TER, Icahn and Unite-Here portends a gloomy future for the Taj as the mooted mid-November closure date draws near.
