Trump and Lasry propose joint US online gambling venture
News on 20 Oct 2011
News on 20 Oct 2011
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.
Our 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 percent stake in Trump Entertainment with Donald Trump retaining 10 percent for the right to continue using his name.
According to a U.S. Securities and Exchange Commission regulatory filing dated October 14, Trump Entertainment would own 10 percent 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 U.S. 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 U.S. 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.
