How does one lose money on a casino?

[Kingofalldems]

Link to tweet

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[msongs]

1. open casino, steal its assets, claim bankruptcy nt

[Claustrum]

9. And then claim the loss as tax credit for future write off n/t

[DonaldsRump]

2. Agreed. My dog would have run the Trump businesses better than he/his Family did

They are some seriously inept people.

[Srkdqltr]

3. Money laundering?

[soothsayer]

11. Probably a lot of that

[BKDem]

4. How?

Make a stupid bet on the owner.

[ProfessorGAC]

5. For Starters...

...opening more than one before any were established, therefore competing against one's self.
Then, because he thrives on chaos, the management of those were independent, so they actively (!) competed with properties all owned by the same entity.
They started trying to "outdeal" one another making revenues fall while expenses go up.
I'm remember reading that those 3 joints didn't even have a joint deal on food & liquor supply.
That simple consolidation is the first thing most businesses would have done.
But, this idiot thought that making his own properties compete with each other was a good idea.

[grantcart]

18. 101 business rule: open businesses sequentially not in concert

In most businesses you need to have a learning curve to get anywhere near profitability within 3 years.


Reminds me of the second greatest municipal bond bust in history, WPPSS (Whoops).

Rather than building 5 nuclear power plants consecutively they built 5 at the same time thereby guaranteeing that there would be no savings from learning from construction mistakes or earning money from innovation.

In January 1982, cost overruns and delays, along with a slowing of electricity demand growth, led to cancellation of two WPPSS plants and a construction halt on the two-reactor Satsop Nuclear Power Plant which was 75% complete.[6][7] Seventeen months later in June 1983, the Washington State Supreme Court ruled the long-term take-or-pay contracts to buy the power produced by the project were illegal.[8] Next month in July 1983, WPPSS defaulted on $2.25 billion of municipal bonds,[9][10] which is the second largest municipal bond default in U.S. history.[3] The court case that followed took nearly a decade to resolve, and WPPSS acquired the unfortunate nickname "Whoops" in the media.

[njhoneybadger]

6. Finance a billion dollars with a 16% interest loan

Then the loan payments are more than it is possible to make with the square footage of your casino.

[soothsayer]

12. Yeah he bet they'd renegotiate when the bills came due

But they didn’t

[njhoneybadger]

13. He walked away from the billion dollar loan, then was legally able to file a billion dollar loss.

[soothsayer]

16. What a guy

[timms139]

17. Or have the

genius Brad Parscale running the show.

[Ahpook]

7. I've always wondered that

It's a slam dunk money making business.

Odds are the house wins, but Trump somehow, supposedly fucked it up numerous times.

Uh huh!

[monmouth4]

8. I heard the casino was a laundry-mat..n/t

[imanamerican63]

15. Ya beat me!

[Thomas Hurt]

10. Intentionally?

[crickets]

19. +1

[JI7]

14. And wasn't it during good economic times ?