Donald Trump Lost The Sydney Casino Bid 30-Years-Ago Due To Alleged Mafia Connections
The NSW government quickly smashed former president Donald Trump's proposal to construct Sydney's first casino in Darling Harbour between 1986 and 1987.
According to The Guardian, out of four groups competing for the lucrative project, Trump had partnered with Kern, a construction business in Queensland. 2017 saw the release of summaries of the different studies on the Kern/Trump bid under regulations that declassify NSW cabinet records after 30 years. The papers, which News Corp. was able to obtain, revealed that the police board classified three groups as "dangerous," including the Kern/Trump organization.
The police report's synopsis noted, "In brief, the Police Board believes that HKMS, Federal/Resorts/Sabemo, and Kern/Trump are unacceptable." “Atlantic City would be a dubious model for Sydney and in our judgment, the Trump mafia connections should exclude the Kern/Trump consortium,” the police board’s report stated then.
There were uncertainties regarding the feasibility of the Kern/Trump proposal, as evidenced by the cabinet documents. The Canadian Imperial Bank of Commerce, the independent contractor, produced a report in which it was concluded that the Trump/Kern offer was one of two that was "not financially viable." The analysis concluded that the casino's earnings had been exaggerated. A summary stated: “The proposal is financially viable on the basis that the projected financial structure is reasonably based.” The summary further stated: “However, projected casino revenue estimates are not soundly based and the quantum of the potential overstatement is so material that the tender is not financially viable. Also, the tender is not financially viable based on expected returns to equity investors.”
Additionally, the casino control division granted Kern/Trump "unqualified certification" to operate a casino in New South Wales. At the time, the Rev. Fred Nile, a member of the NSW upper house, was one of the main opponents of the planned casino. Nile called the procedure a “disaster” and advocated for the NSW government to completely abolish the casino after the government declared its decision to reject the Kern/Trump offer. He voiced concerns regarding potential connections between the planned casino and organized crime.“We certainly wouldn’t have wanted any connection with organised crime,” he said then. Nile added, “We talked about that and there were always problems – casinos attract prostitution and other things.” Speaking about his dislike for poker machines the Rev. said, “Which upset [Kerry] Packer because you make a lot of money from the poker machines,” he said. “We were able to get the government to pass the law that there would be no poker machines in the Crown casino.”
As reported by the NYTimes in 2016, the Republican leader later made millions from his now-closed casino business in Atlantic City, “Atlantic City fueled a lot of growth for me,” Trump stated then while summarizing his 25 years in the gambling business. “The money I took out of there was incredible.” As per ABC News, the Trump Taj Mahal Casino and Resort in Atlantic City, New Jersey, declared bankruptcy on October 10, 2016, after facing continuous financial losses.
