Trump Entertainment Resorts Inc, the casino operator, teamed up with Avenue Capital to come up with a joint venture in online gaming. According to a regulatory filing made on October 14, if online gambling gets legalized by the US administration, the partnership will work in line with it. Avenue Capital, which took over the control of Trump Entertainment last year, will own about 10% of the shares of the joint venture. However, the stakes which are to be held by Lasry or Trump’s hedge fund of $12 billion have not yet been disclosed.

Venture Coincides with USA’s Initiatives to Legalize Online Gambling

The recently signed agreement between Avenue Capital Group and Trump Entertainment Resorts Inc, coincides with the initiatives taken in the United States to legalize online gambling. Trump Entertainment carries out most of its operations from New Jersey and Iowa, where the legalization initiatives are at the peak. Those supporting online gambling legalization initiatives, say that the US, which currently faces a budget, deficit should look into the legalization matter seriously as wagers worth (overall) $6 billion are made by Americans every year on gambling sites operated by offshore companies.

Ivanka Trump said that if online gambling is legalized, a large number of jobs will be created in the country. Ivanka, who acts as the vice president of Trump Organization’s acquisitions and development, also said in a telephonic interview that online gambling platforms have the potential to contribute towards the state’s revenue significantly.

The Joint Venture – a Cost Effective Way to Carry on Online Gambling

The spokesperson of Avenue Capital and representative of Trump Entertainment, refused to comment on the deal. Lasry, who chairs Trump Entertainment, the company operating Trump Plaza Hotel and Trump Taj Mahal Resort, had sold one of the hotel-casinos called the Trump Marina last year.

Trump Entertainment, which suffered bankruptcy last year, said that the filings of the joint venture represent a cost effective way of venturing into the online gambling industry. The filing also suggests the possibility that a few more qualified parties may join the venture.

According Ivanka, the joint venture is expected to become one of the largest companies in the scenario of online gambling, provided the industry becomes legal in the United States.

Attempts to Reorganize the Online Gambling Industry

The online gambling industry suffered a big setback when the founders of three prominent online gambling firms – PokerStars, Absolute Poker and Full Tilt Poker – were indicted by the Department of Justice, US. MGM Resorts International and Caesars Entertainment Corp founded FairPlay USA after the indictments. FairPlay USA is an advocacy group which supports the cause of legalization of online gambling and revision of the Unlawful Internet Gambling Enforcement Act so that popular games like online roulette, can be played legally.

As many as half a dozen bills related to online gambling legalizations are pending, said Bronson, who also stated that about 5-10 are in the process of studying the issue.