You’d think a business designed to take people's money would be impossible to break. The house always wins, right? Well, tell that to the board of directors at Caesars or the ghost of the Trump Taj Mahal. It turns out that having a mathematical edge over your customers doesn't protect you from a massive pile of debt or a badly timed recession.
The history of the gambling industry is littered with billion-dollar skeletons. Honestly, it's kinda shocking how many "sure bets" have ended up in Delaware bankruptcy court. From the neon-soaked streets of the Las Vegas Strip to the boardwalk in Atlantic City, some of the biggest names in the game have seen their chips cleared off the table.
The Big One: Caesars Entertainment (2015)
If we're talking about a list of casino bankruptcies, we have to start with the 800-pound gorilla. In 2015, Caesars Entertainment Operating Co. (CEOC), a massive subsidiary of the parent company, filed for Chapter 11. This wasn't just a small hiccup. We’re talking about an $18 billion debt mountain that finally collapsed.
Basically, the trouble started way back in 2008. Private equity firms Apollo Global Management and TPG Capital bought the company in a leveraged buyout right before the world’s economy caught fire. The timing was atrocious. While their rivals were busy building massive towers in Macau and grabbing Asian market share, Caesars was stuck under a suffocating blanket of interest payments.
- The Debt: Roughly $18.4 billion at the time of filing.
- The Result: A nasty, multi-year legal battle with "junior" creditors who felt they were getting screwed.
- The Survival: They eventually emerged by spinning off their real estate into a REIT called VICI Properties. You've probably seen the name; they own the land under many of the buildings now.
Trump’s Atlantic City Dominoes
You can’t look at any list of casino bankruptcies without seeing the name Trump multiple times. This isn't a political point; it's just a matter of public record. Between 1991 and 2009, his casino entities filed for Chapter 11 six times.
The Trump Taj Mahal was the "eighth wonder of the world" when it opened in 1990. It was also a financial disaster from day one. It defaulted on its interest payments just six months after opening. Why? It was funded by junk bonds with interest rates so high—around 14%—that the casino had to rake in incredible amounts of cash every single day just to stay level. It couldn't do it.
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By 1992, the Trump Plaza and Trump Castle followed suit. The pattern repeated in 2004 and 2009. Each time, the debt was restructured, and the ownership stake changed. By the time the Taj finally closed for good in 2016 (before being reborn as the Hard Rock), it was a shell of its former self.
The Ghost of Revel Atlantic City
Revel is probably the most tragic entry on this list. It cost $2.4 billion to build. It featured a celebrity chef-driven restaurant lineup, a massive spa, and a total lack of a smoking section (which gamblers hated).
It opened in 2012. It filed for bankruptcy in 2013. Then again in 2014.
It lasted roughly two years. Think about that. Two billion dollars spent on a building that couldn't survive twenty-four months. The problem was identity. Revel tried to be a "lifestyle resort" that happened to have a casino, but Atlantic City is a "casino town" that happens to have hotels. It was eventually sold out of bankruptcy for a measly $82 million—about 3 cents on the dollar. Today it's the Ocean Casino Resort, and surprisingly, it’s actually doing quite well under new management.
Why 2026 is Seeing a New Wave
It’s easy to think these failures are ancient history, but the list of casino bankruptcies is actually growing right now. Just this month, in January 2026, we’ve seen Maverick Gaming hitting the headlines with a Chapter 11 filing focused on its parent operator's finances. They own five casinos in rural Nevada and several card rooms in Washington.
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While the Nevada properties like the Gold Country Casino in Elko are still running, the company is underwater on $315 million in debt. It’s the same old story: high interest rates and legal battles (specifically a failed lawsuit regarding tribal gaming monopolies) draining the coffers.
Then there’s the digital side. Lucky Nugget, a major name in the online space, just declared it's closing its doors by February 2026. A massive cyber-attack in late 2025 basically broke their back, proving that in the modern era, a hacker can do more damage than a high roller.
The Fontainebleau: A 15-Year Bankruptcy Saga
If you want to talk about "never giving up," you have to mention the Fontainebleau Las Vegas. This project filed for bankruptcy in June 2009 when it was about 70% finished. For over a decade, it sat as a giant, blue-tinted skeleton on the north end of the Strip.
- The Conflict: Lenders pulled an $800 million loan during the Great Recession.
- The Players: Carl Icahn bought it for a song, sold it to Witkoff Group, and eventually, the original developer (Jeffrey Soffer) bought it back.
- The Finish: It finally opened in late 2023. It took almost 15 years and multiple trips through the legal ringer to actually let a guest through the front door.
Why Casinos Actually Fail
Most people think casinos go broke because a guy in a tuxedo wins $50 million at the blackjack table. That’s a movie plot. In the real world, casinos go bankrupt because of the "Boring Three":
- Over-Leveraging: Taking on billions in debt to build a "mega-resort" and then realizing the interest payments are $1 million a day.
- Market Saturation: Atlantic City is the poster child for this. When Pennsylvania and New York opened their own casinos, people stopped driving to Jersey.
- Bad Timing: Starting a $3 billion construction project right before a global economic crash is a death sentence.
The Real-World Impact
When you see these names on a list of casino bankruptcies, remember that it’s not just a balance sheet. In 2014, when the Showboat closed in Atlantic City, 2,100 people lost their jobs in a single day. The Showboat was actually profitable at the time! But Caesars (the parent company) closed it anyway to "stabilize" their other properties. It was a cold-blooded business move that left a hole in the boardwalk for years.
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What You Should Do Next
If you’re an investor or just a fan of the industry, don't assume a big name means a safe bet. Keep an eye on the "Debt-to-EBITDA" ratios of the major players. When that number starts creeping above 5x or 6x, you’re looking at a company that’s one bad quarter away from a restructuring.
Check the local gaming commission reports. Most states, like Nevada and New Jersey, publish "win" data every month. If you see a specific property’s revenue sliding while their neighbors are growing, it’s a red flag. Also, keep an eye on the REITs. Companies like VICI and Gaming and Leisure Properties (GLPI) now own the actual land. In a bankruptcy, the casino operator might go bust, but the guys owning the dirt usually keep getting paid.
If you’re looking into the history of a specific property, check the "Securities and Exchange Commission" (SEC) filings for "Chapter 11" or "Notice of Default." That's where the real story is written, far away from the flashing lights of the casino floor.
Practical Insight: Always distinguish between a "liquidation" (where the building is torn down or sold for parts) and a "reorganization" (where the casino stays open but the owners lose their shirts). Most entries on a list of casino bankruptcies are the latter. The lights stay on, the slots keep spinning, but the people who owned the stock yesterday own nothing today.