\nATLANTIC CITY, N.J. (AP) \u2013 Eight years ago, Atlantic City\u2019s Tropicana casino was hanging by a thread.<\/p>\n
\tIts former owner cut staff to the bone and let the sprawling complex deteriorate so badly that New Jersey gambling regulators stripped it of its casino license.<\/p>\n
\tBut now, the Tropicana has rebounded to become one of Atlantic City\u2019s more profitable casinos. Current owner Carl Icahn has invested $130 million in it since taking over in 2010, including a far-reaching $50 million renovation due to be completed by Memorial Day weekend.<\/p>\n
\tIts most striking feature will be an outdoor light show on the facade that will be visible for miles. Older areas of the casino floor have been redone, as has the Tropicana\u2019s north tower of 434 hotel rooms, and an open-to-the-public fitness center is part of the plan, as well.<\/p>\n
\tIt\u2019s a far cry from 2007, when former owner Columbia Sussex Corp. was run out of town by New Jersey regulators who determined the Kentucky-based company was incapable of running the type of first-class casino resort required by state law.<\/p>\n
\t\u201cWhen you think back to that period of time, this place was a diamond in the rough,\u201d said Tropicana President Tony Rodio, who ran a different Atlantic City casino at the time. \u201cIt had all the things that everybody says you need to have to succeed in the new Atlantic City, including plenty of non-gaming amenities. It was just a matter of polishing the diamond up.\u201d<\/p>\n
\tThat involved pumping new money into the building, and new hope into the staff.<\/p>\n
\t\u201cThe first thing we needed to do was turn around the morale and the attitude of the employee base,\u201d Rodio said. \u201cWe told them things were going to get better, and then we delivered on that.\u201d<\/p>\n
\tIn early 2008, right after losing its license, the Tropicana experienced a 61 percent decrease in its gross operating profits, to $11.8 million. When Icahn took it over, the casino\u2019s second-quarter operating profits were $9.8 million.<\/p>\n
\tThe Tropicana adopted a high-roller strategy, welcoming the biggest of gambling\u2019s so-called \u201cwhales,\u201d or ultra-high-limit players, letting them bet far more than the casino had previously permitted. While it sometimes exposed the house to large losses, like the Pennsylvania man who won $5.8 million in 2011 at the blackjack table, and a craps player who beat the house for an additional $5.3 million two months later, it also has helped the casino\u2019s bottom line over time.<\/p>\n
\tIn 2014, the Tropicana\u2019s operating profit rose to $59.8 million, making it the third-most profitable casino in the city. The $297 million it won from gamblers last year was up nearly 30 percent from the previous year, and ranked Tropicana fourth among Atlantic City\u2019s eight casinos in terms of revenue.<\/p>\n
\tJoe Wall, a longtime Tropicana customer, said it has always been his favorite place to gamble.<\/p>\n
\t\u201cThe dealers here are really friendly. And they have nickel games, which fits in nicely with our budget,\u201d he said. Asked how often he patronizes the casino, Wall thought for a moment, smiled and said, \u201cProbably too often.\u201d<\/p>\n
Posted by:<\/strong> Skinny on April 20, 2015, 9:59 pm<\/p>\n