Datateam was and remains an experienced, diverse publisher in the UK. Its portfolio of more than 30 titles includes several in the industrial, retail and specialty markets.
Paul Ruben, my US colleague from Park World, and I met with Managing Director Parvez Kayani soon after the acquisition. We gathered one afternoon in early September 2001 at a hotel at the JFK International Airport in New York.
The idea was for us all to get acquainted and develop an editorial plan going forward. Paul and I discussed our perspective on magazines that we had worked on for several years prior. I had been with CI and ES for almost eight years; Paul had also reported for PW for many years.
I stressed to Parvez that gaming was unlike almost any other business, and CI would have to reflect the numerous components within the industry. While anyone could possibly gather enough money to buy a manufacturing line of the products highlighted in his other publications, money alone was not sufficient for success in the gaming industry. In other words, it wasn’t enough just to lay down the “dough” – other elements were equally important. The players had to pass through lots of governmental hoops while constantly enticing and reassuring the public.
Any new operation has its growing pains and kinks, and we had our share those first couple of years. However, congratulations to the CI management, who recognized the need to approach the industry with a multi-pronged strategy. The staff is truly international, and everyone does their collective best to report the stories in the field.
It is not enough to just write copy or repeat press releases. This industry requires explanations of how and why things happen. The “why” of an event is often more important than the “how” of the event.
Unfortunately, in the US, Columbia Sussex Corp. learned that painful lesson, but not before taking hundreds of hard-working folks down with them. The hospitality company management made the huge mistake of believing they could run a casino hotel the same as their non-gaming hotel locations. WRONG!!!
For the past few months, this column has reported on the problems the Kentucky company has faced in Atlantic City since buying Aztar Corporation’s Tropicana hotel last year. From mass layoffs and terminations, to testimony from numerous individuals and groups of deteriorating conditions, to concerns of inadequate security and accountability in the casino, the Columbia Sussex short-lived tenure proved dismal.
Ignoring the pleas of management and employees, Columbia boxed itself in, forced to sell one Mississippi riverboat and another in Indiana to pay off debt.
The final chapter has been written in Atlantic City. They’re officially out by a 4-1 vote from the New Jersey Casino Control Commission’s five commissioners. Until a new buyer is finalized, a retired New Jersey Supreme Court justice is running the show.
Everyone anticipates a fresh start. There is no shortage of interest from local and national parties, already estimated at six potential buyers. The Tropicana is a premier property in a wonderful Boardwalk location in Atlantic City. Added to the hotel’s value is the adjoining Quarter, the $285 million retail and dining complex.
Once sold, Columbia will not profit from the Tropicana sale. Between its current market value and actual cost, Columbia will receive whichever is less. The Casino Revenue Fund, which finances state programs benefiting senior citizens and the disabled, will receive any profits.
Although unequal in scope, these two parallel stories have different endings. Like Datateam’s publishing history, Columbia Sussex has found success in hotel operation. However, unlike Datateam, their executive team apparently refused to accept advice from seasoned veterans who knew the industry and its nuances. They believed they knew better, and ended up losing in Atlantic City and two other sites.
What will be the effect on the remainder of the Columbia Sussex casino portfolio is anyone’s guess. They still retain casino ownership in Nevada, Mississippi and Louisiana. You can bet that regulators in those states will be watching.
The silver lining in this cloud is that once again, the industry has proven that it takes quality, safe operation very seriously.

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