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Iconic Atlantic City Casino Regains Gambling License After three Years

Posted on November 12th, 2010

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Despite the commonly grim picture painted on the casino industry nowadays, there are still news that deviate from the norm. One of the better pieces of news that has been heard from the casino industry lately is the celebration of New Jersey casino regulators over the turnaround of the Tropicana. They have granted the company, which has been struggling until lately, a new casino license. In 2007, the casino regulating board had revoked the Tropicana its license to operate casinos in the state. On Wednesday, the Casino Control Commission of New Jersey granted a new casino operating license to last one year to the Tropicana Casino and Resort. The commission has noted that since the Tropicana has had its license revoked, it has made significant progress in recovering from the damage that its former owners had done.

The news has been very encouraging for the casino’s new top brass who have committed to resurrect the company from its sad state. The new president and CEO of Tropicana Entertainment LLC, Scott Butera, said, “For the first time in many months, I actually sleep at night when I think of Tropicana. I feel like we’re finally there.” The chairperson of the state’s gambling control commission, Linda Kassekert, salutes the casino for making strides in improving its condition for the past three years. She noted, “It is amazing when I think of where we were and what we’ve been through. This has been a good process with a great outcome.”

It was only three years ago when the Tropicana also made the headlines in the gambling industry, but the company dominated inthe bad news category. The owner of the firm at that time sacked close to 1,000 workers, which left both the casino and its hotel understaffed and poorly maintained. The casino commission had no choice but to take away the casino license from the owner. The commission also appointed a retired judge to be in charge of the place until a buyer can be secured for the then hapless facility. Nowadays, the casino is already under the ownership of Carl Icahn. Since its casino license was revoked, the company concentrated efforts on improving hotel operations. The resort has since been thoroughly cleaned and revenues are showing better numbers to complement the company’s improving image.

The president of Unite-HERE Local 54, the union that represents 15,000 of the resort’s employees, Bob McDevitt was quick to say, “It’s a lot better place to work than it was.” McDevitt used to be the biggest critic of the former owners of the resort, Columbia Sussex Corp., a firm based in Kentucky and William J. Yung III, a hotel magnate. McDevitt then threw accusations at Yung of “strip-mining” the Tropicana, Atlantic City’s iconic casino property by making the casino’s employees lose their jobs. Yung has never commented on McDevitt’s claims. Since then, McDevitt noted that since the New Jersey Casino Control Commission stripped the license of the casino and put the facility up for sale, conditions have not only stabilized, but improved as well. It was only in March when the billionaire Icahn finalized his purchased of the complex at $200 million. This was 80 percent lower than what the facility had as its price tag before the recession started. Mc Devitt commented, “It’s much cleaner than it used to be, and the appearance is much better. I have no doubt in my mind now that it’s going to be successful.”

This year, the Tropicana made a first by signing a contract with its unionized dealers. This marks the first time dealers have been organized into a union and sign a contract. Three of the remaining Atlantic City facilities are also trying at negotiating with the dealer’s unions to minimal results.

Prior to Icahn securing ownership of the casino, several other companies have also tried to purchase the casino, including David Cordish and his company based in Baltimore. The deal with Cordish did not push through and his company is now gearing to build a slots casino in Anne Arundel County, Maryland which hopes to attract visitors from New Jersey. Aside from the Atlantic City facility, Icahn has also gained control of eight other Tropicana Entertainment LLC casinos in located in Las Vegas and Indiana, among others.