Atlantic City is desperately in need of some positive news. Their casinos have been experiencing record slowdowns, and projects that were set to be finished have been put on hold.
Tuesday, the news could get worse for the city. The New Jersey Supreme Court will rule whether the former owners of the Tropicana Casino and Resort were wrongly stripped of their license last December.
Tropicana Entertainment LLC has appealed to the state Supreme Court after losing their license. The Casino Control Commission took that license away last December for the casino not being held up to the proper standards.
While the former owners are trying to regain control of their casino, the Commission is giving the go ahead to acting owner Supreme Court Justice Gary Stein to try and sell the casino quickly.
He received special permission to sell the casino under Section 363 of the federal bankruptcy code. The potential buyer, the Cornish Company, has bid USD 700 million for the casino. Other potential owners could show up at the auction and bid higher than the USD 700 million figure.
„I’m not sure that the buyers of this property should even be interested in the casino. The industry in Atlantic City has gone in a downward spiral and it does not look like it is going to get better anytime soon,“ said Jack Linkle, a dealer at a prominent AC casino.