Casino operator Tropicana Entertainment Inc. of Las Vegas reported a second quarter loss Tuesday as business deteriorated at its properties in Atlantic City and Nevada.
The company, controlled by investor Carl Icahn, said it lost $2.7 million vs. a loss of $1.6 million in the year-ago quarter.
Net revenue of $145 million was down from $164 million.
Tropicana has two hotel-casinos in Laughlin in Southern Nevada and one, the River Palms, has seen business decline due to road construction on the main casino strip there.
Tropicana said that citywide, Laughlin casino revenue fell 7.3 percent in the quarter vs. 2010’s second quarter because of the construction, "continuing poor economic conditions and reduced consumer discretionary spending.’’
The company’s property in South Lake Tahoe, the MontBleu Casino Resort & Spa, has similarly been hurt by the slow economy.
Overall, the Nevada properties generated net revenue of $29.3 million, down 6.6 percent.
The average daily room rate at the Nevada hotels was $39, down 4.9 percent as Tropicana lowered rates to maintain occupancy.
This initiative resulted in an occupancy rate of 56.7 percent, steady compared to the 2010 quarter.
Elsewhere, the Tropicana Atlantic City saw net revenue fall from $77.6 million to $61.8 million as gamblers played lucky at its tables while competitors boosted marketing for slot players, taking some from the Tropicana.
Tropicana’s properties in the South reported net revenue of $22.4 million, down from $24.7 million; while Casino Aztar in Evansville, Ind., contributed net revenue of $31.5 million, up from $29.9 million.
Overall, Tropicana said in Tuesday’s report: "Current economic conditions continue to adversely impact us and the gaming industry as a whole. We believe our guests have reduced their discretionary spending as a result of uncertainty and instability relating to employment and the investment and housing markets."
Icahn separately owns the stalled and unfinished Fontainebleau resort project in Las Vegas.