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Tropicana and Casino Resort Sold at a Huge Discount

Save 80%

In a world where 50% sales on shirts and pants could make fully grown adults scramble towards the store and shove against each other in an almost murderous frenzy, one can't help but think about the effects of having a whole casino – building, cards, and all – on sale and at a discount of 80%? The answer – quite the opposite. Contrary to the ease of buying an on– sale shirt once you actually take a firm hold on it, buying a casino entails a wee bit more effort.

SALE 80% ! – Feel like running yet?

Alright, the phrase 'wee bit more effort' does not justify the legal hurdles that the seller, buyer, and the court had to jump through. The Tropicana Casino and Resort actually lost its license more than two years ago, way back in December 2007. It happened because the casino's revenue started to decline steadily and the casino simply could not recover. There was a nasty trail of mass layoffs and an overwhelming amount of complaints about unkempt rooms, bug infested beds, and even overflowing toilets. Simply put, the whole casino was mismanaged, and thus its license was revoked. Since then, the casino has been put under a state– appointed conservator, Gary S. Stein. Carl Icahn, renowned money mogul and a corporate takeover specialist, decided to take a bet on the crumbling casino and to practically turn it upside down. He would turn what was once earning negative revenue into a money– making machine. However, before he could do that, he still had a lot of legal hurdles to jump. Stein wanted to sell the property to him but there were simply too many legal disputes and bankruptcy issues. Add those problems to the economic crisis and you'll be giving yourself a lethal headache.

Legalities – a necessary evil

The first legal hurdle involved a long waiting period wherein Icahn had to wait for regulatory approvals in all of the states where Tropicana Entertainment operates all of its casinos. Finally, after the long wait, the parties went in for a commission meeting. Icahn himself was absent at the meeting, but he was able to buy the whole casino for $200 million dollars, 80% lesser than what it would have cost had the recession not happened. Then, the parties went through a hearing that lasted for a whole day and the legalities discussed exhaustively. Finally, at the end, it was decided that the casino would indeed be sold to Icahn in a 4– 0 vote. Things are looking good for Tropicana Casino and Resort now that Icahn holds the reins and the experts are already making a forecast about an increase in revenue and profits in the next three years, recession or no.

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