An ill-fated casino hotel could be put up for AUCTION to the highest bidder.

Hopes have been high that the Tropicana Casino and Resort would be sold to a theme-park development company at the knock-down price of £500 MILLION.

Now the state-appointed trustee — retired supreme court judge Gary Stein — says he will ask gaming watchdogs for  permission to sell the disgraced Atlantic City venue at a bankruptcy “fire-sale” auction if that deal falls through.

Developers Cordish say they are still negotiating to buy the casino, which has been run on a caretaker basis by Stein since its former owners were stripped of their Atlantic City gambling license in December 2007.

He has acted now to meet a DEADLINE for action set last month by the New Jersey Gaming Commission.

Return

Stein said he was still confident that Cordish WOULD become the Tropicana’s new owners. “We’re negotiating around the clock and throughout the weekend,” he said. “But we don’t have an agreement.”

Casino Updated reported yesterday that the casino’s creditors were becoming increasingly sceptical about the deal and had even suggested that it be returned to its former owners — Tropicana Entertainment — after the company structure was overhauled and relaunched.