Donald Trump’s liquor licenses are under scrutiny following his recent felony convictions, raising questions about the future of his business empire. With 34 felony counts related to falsifying business records, Trump faces potential repercussions that could impact the operations of his golf courses and resorts.
Understanding the Legal Trouble: Why Are Trump’s Liquor Licenses at Risk?
Trump’s felony convictions have triggered legal reviews in states where he holds liquor licenses. New Jersey law prohibits individuals with felony convictions involving “moral turpitude” from maintaining such licenses. This means the state has the authority to revoke them, which could have serious financial and operational consequences for his businesses.
A key example is Trump National Golf Club in Bedminster, New Jersey, where liquor is served under a license held by Lamington Farm Club LLC—an entity owned entirely by the Donald J. Trump Revocable Trust. Although Trump himself is not listed as the license holder, he remains the sole beneficiary of the trust, meaning his felony conviction could still impact the license’s validity.
States Where Trump Holds Liquor Licenses & Potential Risks
State | Property | Legal Status | Potential Action |
---|---|---|---|
New Jersey | Trump National Golf Club, Bedminster | Under Review | Possible Revocation |
New York | Trump Tower Bar & Other Properties | Subject to State Law | Could Face Scrutiny |
California | Trump National Golf Club, Los Angeles | License Transferred to Donald Trump Jr. | May Avoid Immediate Risk |
If New Jersey moves forward with revoking Trump’s liquor license, it could set a precedent for other states, including New York and California, to take similar action.
Financial Impact: How Much Will Losing Liquor Licenses Cost Trump?
Liquor sales contribute significantly to the revenue of high-end golf courses, hotels, and resorts. Losing these licenses would mean a direct financial loss from alcohol sales, potentially costing Trump’s businesses millions of dollars per year.
Beyond the direct revenue impact, there’s also a risk of losing elite clientele, as high-end guests may opt for competitors with full service. The loss of liquor licenses could also reduce property value, making it harder for Trump to sell or lease his properties at a premium.
Estimated Financial Impact
- Direct Alcohol Sales Loss: Could range between $5 million – $15 million annually across affected properties.
- Reputational Damage: Business clients and event organizers may seek alternatives, leading to booking cancellations.
- Operational Costs: Legal fees and restructuring efforts to maintain liquor sales under compliant ownership structures could increase costs.
Could Trump Transfer Ownership to Avoid License Revocation?
There is precedent for Trump transferring business assets to family members to bypass legal restrictions. In 2017, Trump transferred the liquor license for Trump National Golf Club in Los Angeles to Donald Trump Jr., which kept it in the family while avoiding potential legal complications. If New Jersey and other states act against him, Trump may attempt similar ownership transfers to protect his business interests.
However, regulatory agencies may challenge such transfers if they determine they are sham transactions designed to evade the law.
Political and Legal Ramifications: Could This Hurt His 2024 Campaign?
Trump’s legal issues extend beyond his business empire—his political future is also at stake. Opponents could use his criminal convictions and potential business losses to challenge his ability to manage the country. Meanwhile, his supporters might rally behind him, viewing these legal battles as politically motivated attacks.
While his business interests are under threat, Trump’s legal team is expected to appeal and challenge state regulatory actions, which could delay any immediate financial impact. The final decision on his liquor licenses will depend on how state agencies interpret their laws and whether Trump can structure his businesses in a way that complies with regulations.
Conclusion: What’s Next for Trump’s Business Empire?
The scrutiny over Trump’s liquor licenses is part of a larger legal battle affecting his businesses, political career, and financial future. The coming months will be crucial as regulatory bodies in New Jersey, New York, and other states decide whether to take action against his business holdings.
If states decide to revoke liquor licenses, it could lead to a domino effect, with other properties facing similar scrutiny. While Trump may seek legal workarounds, the regulatory and financial challenges ahead pose a significant threat to his business empire.