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Tropicana Seeks Operational Control

ATLANTIC CITY-The company stresses in its petition that the previous casino boss will have no role if it gets control back.

By Eric Peterson | Updated on October 23, 2008

ATLANTIC CITY-Stressing that William Yung won’t have any influence or control over the company, Tropicana Entertainment LLC has petitioned the New Jersey Casino Control Commission to regain operating authority over its casino/hotel here. It was under Yung’s stewardship that the CCC pulled the Trop’s casino operating license in December 2007 for a variety of violations, effectively putting the property on the market for sale as the only way to regain it. And the petition comes as the court appointed conservator–the parent is in Chapter 11–is negotiating with Baltimore-based Cordish Co. for a possible sale .

According to Tropicana Entertainment CEO Scott Butera, the company wants to run the casino because it believes there’s a better chance of reversing the property’s 48% drop in gross operating profits if it’s integrated with the larger organization. “We have assembled a strong, highly competent new management team that is experienced in the Atlantic City market,” says Butera, in a statement. “We want to immediately deploy our managerial and financial resources to serve the gaming public and provide tax and employment benefits to the community.

“The need for this action has been made more urgent by the decision of the New Jersey Supreme Court to hear Tropicana’s appeal to regain its status,” Butera says. “The conservator’s sale process for the property, which we continue to support as a way to determine the credibility of current indications of interest, could be delayed for several months, far too long for the casino to be without the benefit of well-financed, professional casino management.”

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