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TRUMP AND LASRY PROPOSE JOINT U.S. ONLINE GAMBLING VENTURE
19th October, 2011 at 16:52:46
Ambitious plans to become biggest operator in a legalised USA market
In anticipation of legalised online gambling in the U.S., Trump Entertainment Inc. and the Avenue Capital Group are said to be forming a joint online gaming venture according to a regulatory document filed earlier this month, reports Bloomberg.
readers will recall Trump Entertainment Inc. filed for bankruptcy in 2009 and was taken over by global investment firm and New York hedge fund manager Avenue Capital Management, co-founded by Marc Lasry. Avenue Capital holds an approximate 22% stake in Trump Entertainment with Donald Trump retaining 10% for the right to continue using his name.
According to a USA Securities and Exchange Commission regulatory filing dated October 14, Trump Entertainment would own 10% of the venture but no further information was furnished on the stake Trump or Lasry's hedge fund would hold.
Ivanka, Trump's daughter and executive vice president of development and acquisitions of the Trump Organisation further revealed that Avenue Capital would provide the necessary capital to the venture while her father would contribute his name.
"The joint venture is positioning itself to be the largest online gaming company if the USA industry is legalised," Ivanka Trump told Bloomberg. In terms of the Internet, brand is essential toward attracting players, the Trump brand would be the most powerful one in this space, she added.
On the prospect of a legalised USA gambling industry, Trump believes "It would be a tremendous source of taxable revenue for states or the federal government and an enormous generator of jobs.
The filing further outlines that the three parties, Trump Entertainment, Avenue Capital and Donald Trump are restricted from pursuing other competing proposals for a predetermined period.
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