Tropicana casino in Atlantic City to move slowly towards gambling expansion

Icahn is not new to this procedure. He has in the past bought the Sands in Atlantic City, and then fixed up the casino and re-sold it for a much higher price than he paid. Icahn has not indicated that his intention will be to sell Tropicana in the future, but it always is a possibility.

"We are taking a pretty conservative approach on capitalization going forward," said Kenneth Shea, Managing Director of Icahn Capital LP, "I don't think the economy is out of the woods yet. I don't give a lot of credence to the green shoots that people think are out there. The consumer is still fundamentally broke."

The economy has played a major part in the destruction of the casino industry around the US. Existing casinos have been watching their revenue decrease for over a year now. Still, even with the poor economy, there is more casino expansion than ever taking place in the US.

Many states have turned to casino gambling as a way to help save state budgets. Gambling laws have been rapidly changing throughout the US, allowing for more gambling. The state that already had casino gambling are expanding their wagering limits and hours of operations, while other states are offering casino gambling for the first time.