For only the second time in the history of legal gambling in New Jersey a casino operator has been denied a licence renewal. Yesterday the Casino Control Commission refused to grant the new owners of the Tropicana Casino and Resort its licence application and has appointed a retired state Supreme Court justice to oversee the operation, which will remain open at present. Columbia Sussex Corp was also fined US$750,000 for not complying with New Jersey Law requiring an independent audit committee.

Since the company took over the Tropicana from Aztar Corp in January it cut around 900 jobs, leading to claims of understaffing and cleanliness issues. The Commission voted 4 – 1 to deny Columbia Sussex a licence, a decision the company will appeal. Failure to gain a licence will mean that the company must sell the property. Last week the New Jersey Division of Gaming Enforcement recommended the Tropicana be granted a one-year licence with conditions attached, so the licence refusal by the Commission came as a surprise to some.

The Commission decided that staffing and customer service had been sacrificed for the pursuit of profit, and that Columbia Sussex did not have the ability to run Atlantic City’s biggest hotel. The company has said it will work closely and diligently with the appointed trustee and that it remains committed to providing guests with a quality experience throughout their stay. The Union called the Commission’s ruling a victory for the industry. (E-12.13.07)

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