Gaming panel licenses Trump

Thursday, Feb. 19, 2004 | 11:25 a.m.

CARSON CITY -- Donald Trump, licensed by the state Gaming Commission today for 10 percent of the company that owns the Riviera Hotel on the Las Vegas Strip, said he probably will not buy additional shares in that company. Instead, he said he will look at other investments in Las Vegas either with or without gaming.

And he said there was "not a great chance" that he would join with Phil Ruffin at the Frontier gaming development on the Strip.

After the meeting, Trump told reporters that he has "great plans for the state" but declined to reveal them. He did tell the commissioners that he might build a Trump Tower in Las Vegas with luxurious apartments.

Trump's company manages the Trump 29 Indian casino in California, which he said was quite successful. But he said he would not be looking to manage other tribal casinos in California.

Trump's investment in the Riviera is about $2 million. He said this license will allow him to look at other gaming opportunities in Nevada, focusing on Las Vegas. He said he liked the management people at the Riviera but "would probably not pursue" additional shares of Riviera Holdings, owner of the Riviera.

The commission questioned Trump about the recent announcement that Credit Suisse First Boston will make a $400 million investment in Trump's gaming company. He said he would still remain chairman of the board of Trump Hotels & Casinos Resorts Inc. and would have a "lot of votes on the board." Francis McCarthy, executive vice president of corporate finance for the Trump company, said Trump would remain a "significant" shareholder in the firm but not hold a majority of the stock.

McCarthy said the investment would help pay down debt, allow expansion and permit Trump to look at other ventures.

Trump said his gaming company pays a high interest rate on bonds. The investment by Credit Suisse will permit the reduction of the debt and the interest rate. "The company becomes cash flow positive," he said.

The Credit Suisse deal is expected to be completed by mid summer, McCarthy said.

Commissioners told Trump that could mean Credit Suisse may have to apply for a license.

Gaming Commissioner Augie Gurrola praised Trump for his improvements in operating his casinos in Atlantic City. He said reports of cash handling and reporting violations have decreased in the last three years.