Entertainment

Icahn Made Millions from NJ Hotels While Demanding Worker Give-Backs

November 12, 20014
By Neal Tepel

Atlantic City, New Jersey – According to a new report from UNITE HERE Gaming Research, Carl Icahn collected over $350 million from his ownership of the debt in Trump Entertainment since 2010.

“Icahn made millions of dollars from Trump since the previous bankruptcy, but now he’s asking workers making an average of less than $12.50 per hour to make the real sacrifices by giving up their health benefits and other protections,” said Bob McDevitt, President of UNITE HERE Local 54.

The UNITE report states that since 2010, Icahn has extracted $350 million from the Trump casinos in Atlantic City. Rather than investing in Atlantic City hotels to improve operations, he sent that money to Icahn Enterprises in New York.

According to the bankruptcy plan, Icahn values Trump Entertainment between $140 and $190 million if the Taj Mahal remains open. If the Taj closes, the valuation is between $110 and $155 million.

Between 2009 and 2012, Icahn was also the majority lender to Tropicana Entertainment, owner of the Tropicana Atlantic City. It's estimated that Icahn received cash distributions from the debt of over $97.4 million.

“Over the past several years, my co-workers and I have given up raises, vacation pay, holidays and much more in order to keep our health benefits and to help keep this company healthy. And all the while a New York billionaire has been lining his pockets,” said Valerie McMorris, a cocktail waitress at Taj Mahal and member UNITE HERE Local 54.

***UNITE HERE Local 54 is Atlantic City’s largest casino workers union and represents almost 10,000 workers at all 8 of Atlantic City’s casinos.

November 12, 2014

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