Even As His Empire Collapses, Yung Envisions Kentucky Casino
Since William Yung and his company, Columbia Sussex, tried to move up from the minors to play with the big boys of casino management in Atlantic City and Las Vegas, things have gone horribly wrong. Now Yung has undertaken a new gamble: that a property he has purchased in Covington, Kentucky, will become a casino, pending legalization of gambling through Governor Beshear's bill, and selection of Yung's site to host a license.
Columbia Sussex's methods of operation have been under attack nationally, ever since the license at Tropicana Atlantic City was pulled. The company has had recurring issues with labor and quality of operations. Repeatedly, layoffs in large numbers follow acquisition by Columbia Sussex. At the Tropicana, the New Jersey Gaming Commission found that Yung had made so many cuts in his workforce that the casino and hotel could no longer operate as a first-class facility.
Casino Aztar in Indiana went through similar problems. Layoffs and mismanagement had made such a mess that the mayor of Evansville had called for an investigation into Columbia Sussex's methods. The casino is expected to be sold this spring, rendering the investigation moot.
The Tropicana in Las Vegas is also being looked at by the Nevada Gaming Control Board. The union there has been working without a contract, and layoffs have once again occurred. An announced refurbishing and remodeling of the Vegas property has not begun.
Financing has also become a major problem for Yung. The Tropicanas were key to backing his loans, and once he lost control of the Atlantic City resort, loans were due at an accelerated pace.
Yung has also had problems with background checks in Missouri, and a New Orleans riverboat, where Yung's first action upon purchasing the casino was to lay off over 100 employees. Yung's Baton Rouge riverboat has seen jobs shrunk from over 1000 to 800. Mississippi is currently investigating Yung and Columbia Sussex, as well.
In order for the Covington location to save Columbia Sussex from its downward spiral, several things have to fall perfectly into place. First, Kentucky must pass the governor's casino bill. Then, Beshear must give Yung a license, which may be problematic after the mound of bad publicity nationwide. Yung has attempted to stack the deck by donating huge sums to Beshear's campaign, even though Yung is a Republican and Beshear a Democrat; but the media attention promises to be blinding, and Beshear may not politically be able to return the favor.
It looks as if the best thing for all would be if Columbia Sussex continue to sell off its properties, and hopefully new management will be better financed and more responsible.
