Laughlin casino owner suggests sale might be in offing
In a presentation to potential lenders on Wednesday, Tropicana Entertainment Inc. outlined several changes company officials will make at its two Laughlin resorts, including possibly divesting one of them.
The company, not connected with the Tropicana Las Vegas on the Strip, said it would make investments in "slot product and amenities" and possibly add a "well-known Hispanic restaurant" based in Southern California. The goal, according to the 59-page presentation, would be to create distinct identities for the 1,495-room Tropicana Laughlin and 1,001-room River Palms while pitching them to locals and residents of Phoenix and the suburbs east of Los Angeles.
In addition, the presentation mentioned "exploring strategic alternatives" to "maximize value" of the River Palms. Company executives could not be reached for further comment, but that terminology typically is used when a company studies some form of divestiture.
As a cost-cutting measure, the River Palms will have an electronic table games pit rather than dealers during slow mid-week days.
Once a boom town, Laughlin visitation and room sales have declined steadily for more than a decade, while gaming revenue has dropped since 2007.
The rise of tribal casinos in the southwest has hurt the town. And, as Las Vegas added thousands of new rooms and slashed rates in recent years, the price difference between it and Laughlin shrank, further hurting tourism there.
Tropicana hopes that as the Strip recovers, Laughlin will regain its footing as a low-priced alternative.
Tropicana, which has nine hotels and 6,060 rooms spread over five states and Aruba, is trying to interest lenders in a $175 million loan to refinance two loans totalling $150 million. The company is controlled by New York investor Carl Icahn through corporate entities.
Contact reporter Tim O'Reiley at
toreiley@reviewjournal.com or 702-387-5290.
