Atlantic City Tropicana Gets Squeezed
The New Jersey Division of Gaming Enforcement (DGE) has recommended that the Atlantic City Tropicana only be given a one year extension to its gaming license. The DGE will rule on December 12th whether or not the AC Tropicana, deluged by a flood of customer complaints - ranging from bed bugs, unkempt rooms and public restrooms - which some say have been caused by parent company Tropicana Resorts (aka Columbia-Sussex) staff reduction over the last 10 months.
New Jersey gaming law states that all casinos must be "superior, first class facilities" in order to keep their gaming license. With staff cuts, a revolving door of executives including three CFO's in 12 months, and more customer complaints than quarters, the Tropicana appears to be in a degree of jeopardy.
We visited Columbia-Sussex owned Montbleu in Lake Tahoe a few months ago and found the rooms to be clean but promises made in marketing materials weren't made good on. An employee we spoke with said that Columbia-Sussex had made deep staff cuts when they took over the former Caesars Tahoe property, but it was mostly dead weight. The Tropicana Atlantic City and Las Vegas properties have had multiple rounds of staff cuts, each one getting successively deeper. Employees have begun to speak out, saying it is impossible for the resort to operate at current staffing levels.
Odds on the Tropicana Losing Its License: 15-1. Any takers?
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