Icahn Receives Approval For Tropicana Casino Takeover In AC

Carl Icahn successfully bid for the Tropicana Casino and Resort in bankruptcy court. On Wednesday, Icahn received approval from New Jersey regulators to once again operate the casino under the reorganization of the Tropicana Entertainment LLC company.

That is an important step for Icahn, who is acquiring Tropicana Entertainment in bankruptcy proceedings in Delaware. When that happens, Icahn will be free to market the Atlantic City casino in conjunction with other casinos Tropicana owns around the country.

"There still will have to be major work done to get the Tropicana Casino and Resort up to the standards they once operated under," said observer Larry Bellsor, "But Icahn has done this before, and if anyone can turn the casino around, it is him."

Icahn is no stranger to buying casinos at a low price, fixing them up, and then selling them at a much higher price than he paid. In fact, he has done it in Atlantic City before, with the Sands Casino.

There is no indication, however, that Icahn plans on flipping the Tropicana. With the economy down, it is more likely, according to industry insiders, that Icahn will try and make the Tropicana highly profitable and help with the resurrection of the Atlantic City gaming industry.

The Tropicana will not officially be turned over to Icahn and his investment group until the bankruptcy proceedings are complete. Gilbert Brooks, an attorney for Icahn, believes that could be done by the end of the year. Until then, a state-appointed conservator will continue to run the casino.

August 27, 2009
Posted By Tom Jones
Staff Editor, CasinoGamblingWeb.com
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