Bidding Commences For Tropicana Casino In Atlantic City

The troubles are continuing in Atlantic City for casino owners. Even with the sharp decline in revenue, there are potential owners who want to become part of the casino owners' fraternity.

The bankruptcy auction for the Tropicana Casino and Hotel has begun and the first bid has come from a group that is headed by billionaire Carl C. Icahn. They started the bidding at $200 million.

"It is my expectation that this stalking horse bid will generate substantial interest from multiple bidders," said state appointed conservator Gary S. Stein, "leading to a robust auction that achieves the highest price possible in light of current conditions in the gaming industry."

The auction is unlike most that people see on television or in the movies. Negotiations had to take place between the lenders and Stein regarding the sale of Tropicana. After weeks of negotiations, the two sides came to an agreement and the process has now been officially started.

While the search is on for new owners of the Tropicana, the casino continues to operate with business as usual. Even after the old owners lost their gaming license in the state, the casino was kept open under the direction of Stein, a retired New Jersey state Supreme Court justice.

The agreement of sale must now be approved by the New Jersey Casino Control Commission. Once that step is complete, the casino would then be placed into an auction in the next couple of weeks.

March 31, 2009
Posted By Tom Jones
Staff Editor, CasinoGamblingWeb.com
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