Financier Carl Icahn may offer to buy Tropicana casino

20.02.2009, Billionaire financier Carl Icahn may be rolling the dice again on an Atlantic City casino. The former owner of the now defunct Sands Casino Hotel is among parties who may offer to buy the troubled Tropicana Casino and Resort once it's offered in a bankruptcy auction

Attorney Gilbert Brooks, representing Icahn and other secured lenders who hold a USD 1.4 billion mortgage on the casino-hotel, says Icahn and others are willing to make an offer as a so-called stalking horse. That involves making a minimum offer in a bankruptcy court auction that other bidders can then exceed; if no one else bids, the stalking horse gets the property.

The state Casino Control Commission, which licenses and regulates the industry, had been expected to authorize a sale Wednesday. But because a potential offer from the lenders appeared close to materializing, the deadline was put off for a month. A bankruptcy auction likely will be authorized March 18.

The Tropicana has been overseen by a state-appointed conservator since December 2007, when its former owners were stripped of their casino license after nearly 1,000 layoffs led to problems with cleanliness, service and compliance with state gambling regulations.

The conservator, Gary Stein, a retired state Supreme Court justice, had tabbed Baltimore- based Cordish Co. as a potential buyer for the Tropicana in a bankruptcy court auction. But the two sides still have not reached a deal that would be acceptable to the senior lenders, who could block it in court. Stein attorney Sean Mack said the company's chairman, David Cordish, remains interested in the Tropicana. Last year, Cordish offered USD 700 million for it, but that offer has been reduced because of the economic meltdown. "He's still very interested and is still willing and considering increasing his offer," Mack said Wednesday.

The new amount Cordish is willing to pay for the casino hasn't been disclosed. Brooks said if Icahn and other lenders including the Greenwich, Connecticut-based hedge fund Silver Point Capital LP do make a stalking-horse offer in a bankruptcy auction, they would welcome higher bids from Cordish or anyone else.

Later Wednesday, the casino commission was to hear a request from a lender seeking to foreclose on New Jersey's first casino, the Resorts Atlantic City, which hasn't made loan payments since October. Column Financial Inc., a commercial mortgage subsidiary of Credit Suisse, asked the commission last month to let it foreclose on the casino. Failing that, Column Financial wants the Colony Capital LLC affiliates that own the casino to hand over title to the property. Column would keep the casino open while searching for someone to run it.

Resorts was the first casino outside Las Vegas when it opened in May 1978. But it has an older clientele that spends and loses less money than younger crowds that prefer newer casinos such as the Borgata Hotel Casino & Spa. Resorts took in USD 233.2 million in 2008. The only Atlantic City casino that did worse was Trump Marina Hotel Casino, which is being sold.

In contrast, the Borgata's revenues were USD 738.7 million. Atlantic City is struggling not only with the nationwide recession, which leaves gamblers with less money to risk, but also with competition from new slots parlors in Pennsylvania and New York. The casino commission said recently that 10 of Atlantic City's 11 casinos were shedding jobs at an alarming pace.

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Über Tropicana Resort and Casino (geschlossen per 2.4.2024):

We bring gaming to a whole new level of excitement and sophistication in our legendary casino. Whether you want to join our dealers at the tables or choose from a variety of slots, our vibrant casino has all of your favorite Las Vegas games.

Want to up the ante? Then look no further than the Tropicana High Limit area. Not only does this space offer an array of high limit slots and table games, it also provides an atmosphere of casual elegance and a private location for gamblers who want to place their high-stakes bets.

When game day rolls around and you’re looking to do some sports betting, be sure to stop by the Tropicana race and sports book. Being that our sports book is operated by industry leader CG Technology, we offer some of the most technologically advanced wagering on the Strip! You can even download their casino apps to your smartphone or tablet and place wagers from anywhere on the Strip!

Regardless of what you decide to play, we highly encourage you to sign up for the Trop Plus Players Club, our free rewards program that was named Top Recommended Rewards Program on the Strip and Best Casino Deal. When you sign up, you will receive unprecedented casino rewards such as earning Free Slot Play and comps, free upgrades on our Las Vegas hotel rooms and suites, complimentary hotel stays and more!

The Tropicana casino is open 24 hours a day, seven days a week. Come play with us and find out for yourself why we were named one of the 10 Best Casinos on the Strip!

We’re Now Part of the Penn National Gaming Family!

It’s official and we couldn’t be more excited – we have joined the Penn National Gaming family! With 27 gaming and racing facilities in 17 states, including M Resort in Las Vegas, Penn National Gaming is a respected leader in these industries and we’re looking forward to sharing exciting updates as they occur.

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