Tropicana in Atlantic City Denied License Renewal

On Wednesday December 12th the New Jersey Casino Control Commission refused to renew the license of the Tropicana Hotel and Casino in Atlantic City saying that it failed to meet the State's strict operating standards for financial responsibility, character and integrity. The board ruled that a trustee would operate the Boardwalk facility immediately until a buyer was found.

"In a word, Tropicana's regulatory performance over the past year has been abysmal," commission chairwoman Linda Kassekert said in announcing the decision. She cited, in particular, the casino's failure to create an independent audit committee, a critical regulatory requirement for Atlantic City casino operators. The casino was also fined $750,000 for disobeying regulations. Kassekert said the decision should "reinforce the commission's reputation as one of the toughest in the country."

The Columbia-Sussex Corporation which owns the Tropicana has filed an appeal. Officials said former New Jersey State Supreme Court Justice Gary Stein, who was appointed a year ago as trustee when Columbia-Sussex first applied for an interim casino license, will now be the chief executive of the casino until a buyer can assume control. "The casino will remain open and operating under Stein's direction," Kassekert said.

It was only the second time a license renewal has been denied in the 29-year history of legalized gambling in Atlantic City. In 1989 the Commission refused a renew license for the bankrupt owners of the Atlantis Casino.