Online casino expresses interest in struggling Trump company
Casino Fortune look to negotiate deal with Trump Hotels and Casino Resorts
Thursday 30th September 2004
Following the revelation between Trump Hotels and Casino Resorts and the investment banking company DLJ, an online casino has stepped in with a public offer to become involved with the troubled company. Casino Fortune, based in Trinidad, has announced that it is hoping to negotiate a deal with the Trump company. At the moment the online casino company has come forward saying it will offer to invest US$400 million in return for a 31 percent stake in the company.
The original DLJ deal was negotiated around their gaining of a 55 percent stake in the company, in return for the same amount of capital. That deal was dissolved by mutual agreement last week, and Casino Fortune is hoping to use this opportunity to start their own association with the casino and hotel company.
Dennis rose the senior vice president and general manager of Casino Fortune said of the announcement: “Right now we are just declaring our interest. This is a preliminary contact we are making, and I hope we will be able to put some meat on the bones of a deal”. There are however, possible legal obstacles in striking such a deal, bearing in mind the current illegal status of online gambling in the US. Should Casino Fortune wish to progress with this deal, they would need to subject their company to an investigation, and apply for a license. However spokesperson for the online casino, Kevin Mercuri, has suggested that the online casino may actually be prepared to abandon the online operations in order to become investors in the Trump company. He said: 'This is a matter of government regulation not keeping pace with technology; sooner rather than later, online gaming will be sanctioned by state and local governments. But if we have to sell off our Internet gaming business in order to work with the Trump organization, then it would be worthwhile to take a small step backward in order to take a giant step forward.'