In comments made regarding the denial of license renewal, Casino Control Commission Chairwoman Linda Kassekert told reporters “Cleanliness was disregarded in order to meet a predetermined bottom line. Customer service was dismissed.” the Chairwoman continued, “Simply put, I do not believe this applicant has the business ability to operate a facility of this size and magnitude given the decisions that were made.
These comments were made in regards to an American Casino that is located in Atlantic City New Jersey, the Tropicana has been denied a license renewal by the state Casino Control Commission. This denial makes history as the second license renewal application declined by the commission in the 29 years that gambling has been legal in the state. The first being Elsinore Atlantis Casino in 1989.
Since Sussex took over the Tropicana 900 jobs at the casino have been slashed, a quarter of the casinos employee base gone.
The decision by the Casino Control Commission will result in the forced sale of the property, including both the casino and the states largest hotel. Casino owners, Columbia Sussex Corp. do have the right to file an appeal in which case the original decision could be overturned by the appeals court. A lawyer for the company confirmed that such an appeal will be filed. In the meantime both the Tropicana hotel and casino remain open and are being supervised by retired State Supreme Court Justice Gary S. Stein.
Under the N.J. law, the company is required to set up a trust and name a trustee who would qualify under the Casino Control Act. According to an email from Daniel Heneghan, public information officer from the New Jersey Casino Control Commission, “Columbia Sussex chose Justice Stein over a year ago to serve as trustee as part of the company’s request for interim casino authorization. ”
Chairwoman Kassekert has communicated that for the time being regular casino operations will not be interrupted, she further explained; “The casino and hotel remain open. The employees will be on the job and will be paid, and customers will be able to gamble and enjoy all the amenities that the Tropicana has to offer.”
During this time, Daniel Heneghan again explains, “The casino is allowed to upstream money to the parent company to cover items such as payroll, benefits, etc. It is not allowed to make any profit.”
The out and out denial of renewal was a shock and a delight to many current and passed Tropicana casino and hotel employees. The shock came partly from the fact that the State Division of Gaming Enforcement did not recommend denial of the casino’s license. They instead asked for approval with a very long list of conditions leading to a major clean up and overhaul of the casino and hotel.
The casino was not finished making their point even there, in addition to the license renewal denial, the commission also fined Columbia Sussex $750,000 for lacking the required independent audit committee as per state law.
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