Tropicana Entertainment Casino Group Declares Bankruptcy

But the truth is that Columbia-Sussex operating policies, including massive layoffs and declining standards, caused problems throughout the casino empire long before the New Jersey license was revoked.

In a move that must surprise no one, Tropicana Entertainment LLC filed Monday for bankruptcy protection from its creditors. The company put its claim before the U.S. Bankruptcy Court in Delaware, listing debts of $3.3 billion against assets of $2.8 billion.

Company president Scott Butera said the move was necessary for Tropicana to get debt under control, catch its breath, and prepare to move forward. He emphasized that operations at the nine casinos under the company mantle will continue to operate, and urged customers to continue their patronage.

Although the Tropicana in Atlantic City is not included as it awaits a forced sale, casinos that are affected by the legal tactic are the Tropicana Casino & Resort in Las Vegas; Bayou Caddy's Jubilee Casino in Greenville, Mississippi; Casino Aztar in Evansville, Indiana; Horizon Casino Hotel in Vicksburg, Mississippi; Horizon Casino Resort and the MontBleu Resort Casino & Spa, both in Lake Tahoe, Nevada; the Tropicana Express Hotel & Casino in Laughlin, Nevada; River Palms Resort & Casino in Laughlin, Nevada; and the Sheraton Hotel and Belle of Baton Rogue Casino in Baton Rouge, Louisiana. 

Tropicana and its parent company, Columbia-Sussex, have been locked in a financial plummet since the loss of the license at the Tropicana in Atlantic City at the hands of the New Jersey Gaming Commission. Regulators in New Jersey were responding to declining service and sanitary conditions at the Atlantic City casino after Columbia-Sussex's purchase of the Tropicana group.

Butera claimed that a steady decline in tourism nationwide, the credit crunch, worldwide economic woes, and what he considered a presumptuous action in New Jersey all led to the bankruptcy in a result beyond corporate control. But the truth is that Columbia-Sussex operating policies, including massive layoffs and declining standards, caused problems throughout the casino empire long before the New Jersey license was revoked.

Both Casino Aztar in Indiana and the Belle of Baton Rouge Casino in Louisiana have had contentious relationships with local officials and labor representatives. Coupled with the financial overextension committed by Columbia-Sussex to purchase the casino group, and bankruptcy was almost a destined conclusion.