Atlantic City Tropicana Loses License, Must Sell

Earlier this week, by a four to one vote, the New Jersey Casino Control Commission revoked the Tropicana Casinos and Resorts license to operate the Tropicana in Atlantic City.  The casino became only the second in the thirty years that casino gambling has existed in Atlantic City to have its license pulled.   

The Commission cited “…lack of business ability, a lack of financial responsibility and a lack of good character, honesty and integrity” as reasons for the decision.  The property must be sold within 120 days. 

The company laid off 1,000 employees this year, perhaps a big reason why it has received complaint after complaint about the shoddy conditions of its resort.  Yvonne G. Maher, acting director of the Division of Gaming Enforcement during the licensing hearings, said, “Numerous patron complaints from Tropicana Atlantic City's own files evidence the impact that the layoffs have had on the condition of the property and shown that there is true concern about Tropicana's ability to create and maintain a successful, efficient casino operation.” 

Commission chair Linda Kassekert said that CEO William J. Yung, III, “…demonstrated ineptness at appreciating the workings of the Atlantic City casino marketplace,” and that he and his staff could have, “…taken the time to educate themselves in what it takes to operate successfully here, or they could have hired and retained sufficient staff knowledgeable in those processes. They have done neither, and must bear the consequence.” 

The company plans to sell the property in Atlantic City, as well as its casinos in Evansville, Indiana, and Vicksburg, Mississippi to pay off $1.3 billion in bank loans.  The Commission ruled Wednesday that proceeds from the sale could not be used to create a profit.  Any profit will go to the Casino Revenue Fund, which finances state programs for senior citizens and the disabled.