Carl Icahn, a multi-billionaire businessman, is the new owner of the Taj Mahal in Atlantic City, who was planning on investing $100m into the property. However, Icahn is now stating that he will not invest the funds if the state of New Jersey decides to approve casinos in the northern portion of the state.
When Icahn acquired the struggling casino, he basically saved the property from the process of bankruptcy. The businessman now believes that if the northern area of the state is allowed to have casinos as this would be competition for the Taj Mahal. In speaking with the Associated Press, Icahn feels his investment would basically be worthless.
Icahn stated that although he was planning to invest as much as $100m into the casino venue, he has made just as substantial investments into the Tropicana. It would be not the smartest of investments for Icahn to move forward with investing in the Taj as well when gaming is an open issue in the north. Icahn now plans on waiting to see what the outcome will be for the proposals in the north before moving forward.
Icahn had apparently been told by politicians that no casinos would be added in the north and he then decided to move forward with the Taj purchase. If these assurances are now broken, Icahn wonders why anyone would invest in the state of New Jersey knowing that assurances of politicians mean nothing. For now, the businessman plans on immediately investing $10 to $20 million on maintenance of the property and continue with important requirements of the casino despite what happens with the referendum this November.