Billionaire Carl Icahn's Tropicana casino has been approved to manage the Trump Taj Mahal in Atlantic City, N.J.
New Jersey casino regulators approved the decision, but it's still up to Icahn to invest the $100 million he promised to the Taj Mahal. However, Icahn made this promise before a statewide referendum became known to add two new casinos to the Northern half of the state.
Icahn said he won't be able to invest in the Taj Mahal if the referendum is approved, creating competition between casinos in Atlantic City and the rest of the state. A vote on the referendum is expected to take place November.
Tony Rodio, president of the Tropicana and the new entity that will manage the Taj Mahal, told the state Casino Control Commission that Tropicana Entertainment that Icahn is immediately investing $15 million to fix immediate issues facing the Taj Mahal, including leaking roofs in the Chairman Tower and repairs to 150 guestrooms that have been out of service. The casino expects the rooms to be repaired in time for summer.
The casino was previously owned by Donald Trump, who lost his 10 percent ownership stake when the property changed hands in bankruptcy court. Icahn bought the casino's debt at a discount, and later exchanged it for ownership of the property in bankruptcy court, where he promised to invest $100 million in the casino to return it to prominence.