Tropicana Casino Auction Approved By New Jersey

The Tropicana Casino Resort has not had an owner since New Jersey regulators stripped the casinos previous owners of their gaming license. The casino has been operational, however, under Conservator Gary Stein.

Stein has been attempting to sell the property since December of 2007, when regulators appointed him to oversea the operations of the casino. He was close to a deal with Cordish Co., but the $700 million deal fell apart along with the economy.

Now, there already is a bid of $200 million that has been entered by a group that is led by billionaire Carl Icahn. The casino will most likely not sell for that price, but it is the starting point for further bids.

"This bankruptcy filing is not the result of financial distress," said Linda Kassakert, Chair of the New Jersey Casino Control Commission, "But it is one that will allow the conservator to sell the casino complex free of all liens and encumbrances."

This is not the best of times for a casino sale in Atlantic City. What used to be the gambling capital of the East Coast has now become a troubled area for casino gambling. Revenue has dropped sharply over the past year, and several developers have halted projects for new casinos.

Right before the economy took a turn for the worst, the city was hoping for a revival. Many of the existing casinos were either being renovated or torn down in favor of building new ones. Those projects have been adversely affected, however, by the economic conditions.

April 29, 2009
Posted By Tom Jones
Staff Editor, CasinoGamblingWeb.com
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