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Laughlin casino owner suggests sale might be in offing
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LAS VEGAS REVIEW-JOURNAL
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.
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Wife and i took a sunday drive to laughlin, parked at the nugget, hit the buffet line that was empty, around 11:30, was told we need a reservation, they were expecting a rush? Huh? the parking lot, casino and town was empty!! Told to go down into the basement to the restaurant there, it was closed. Ridiculous. Why do casinos put people in charge who have no gaming experience? They may be able to crunch numbers and streamline the budget but obviously cannot successfully operate, Cosmo is a great example. They can offer rooms at high rates, high drink prices, high meal prices with tiny portions and no gamblers. Soon the other revenue will dry up as their clientele has no real money and will get tired of being ripped off.
Laughlin was done when they stopped doing the free river taxis. Now it is nothing but bad food, old entertainment, and an old folks home. What kind of gamblers are they going to attract with 19 dollar rooms anyway?