Friday, December 21, 2007

Tribe May Be Interested in Atlantic City Property

Feather News

The Tropicana casino in Atlantic City is up for sale and the Mohegan Tribe is one of the groups expressing an interest in the property, which some analysts say could sell for $1 billion dollars.

One year after Columbia-Sussex received temporary approval to operate the hotel, the New Jersey’s Casino Control Commission voted 4-1 on Wednesday not to renew the license. Since the license denial, the casino has been in control by a state-appointed trustee.

The Casino Control Commission said that the operators of the Tropicana did not have the good character and business ability to run a "first-class facility of superior quality." The Tropicana did not adhere to the New Jersey Casino Control Act’s vision of "restoring Atlantic City as a resort, tourist and convention destination." Nearly one-quarter of the casino and hotel’s workforce was cut and there were complaints of uncleanliness.

At least a half-dozen companies have contacted officials about possibly buying the Tropicana. The Cordish Company of Baltimore is one of the potential buyers. Cordish is also in direct competition with the Tribe for a Kansas casino. The Cordish Company developed a $204 million outlet mall in Atlantic city and teamed up with former Tropicana executive Dennis Gomes to form a gaming management company. Pinnacle Entertainment, another competitor of the Tribe for a Kansas casino, and Steve Wynn are also named as being interested in the casino and hotel.