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Union granted status at hearings

ATLANTIC CITY, New Jersey -- (PRESS RELEASE) -- Today, the New Jersey Casino Control Commission granted UNITE HERE Local 54 participant status in the Tropicana's upcoming licensing hearing. At the same time, the Commission denied Tropicana's attempt to limit the scope of the hearing.

One of the several lines of evidence Local 54 has advanced is that massive job cuts at the Tropicana has hindered the casino's ability to maintain a "superior, first-class facility" as required by the Casino Control Act. In its motion, Local 54 argued "a casino licensee cannot maintain a superior, first-class facility of exceptional quality without a sufficient number of employees to maintain and clean the facilities and serve the guests."

Tropicana, on the other hand, had sought to limit the scope of the hearing to exclude discussion of:

(1) the effect of non-mandatory employee layoffs on a licensee's organizational operations; and

(2) under what circumstances a licensee's casino hotel may be classified as a "first class facility" under the Casino Control Act.

Tropicana Entertainment unsuccessfully argued that the Casino Control Commission lacks authority in the upcoming licensing hearing to determine if Tropicana is operating a "first-class facility."

"These two rulings today show that the Commission is taking the concerns we have raised about staffing and cleanliness very seriously," said Bob McDevitt, President of Local 54. "We look forward to vigorously presenting our case at the hearing."

Since January 2007, Tropicana has reduced its staff by over 1,000 workers or over 22%. In the first half of 2007, of the city's 11 casinos, Tropicana had 22% of all health department reports rated "conditional satisfactory" and "unsatisfactory."

Tropicana has suffered the steepest decline in gaming revenue this year--10.3% as compared to the industry, which is down 1.8% excluding the Sands from the comparison. On November 13, Tropicana announced that it was not in compliance with its leverage ratio covenant. Tropicana must now seek a waiver from its creditors or amend the credit agreement.

UNITE HERE Local 54 is the casino workers union in Atlantic City, representing over 15,000 workers.

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