The approval, expected from the Nevada Gaming Control Commission, would finalise an endorsement two weeks ago by the Nevada Gaming Control Board. That panel, appointed by the governor, recommended that Icahn be given control of Stratosphere on the North-end of the Las Vegas Strip, and Arizona Charlie's Inc a small, off-the-strip hotel and casino that caters to locals.

If, as expected, Icahn clears the regulatory hurdle, he would then face the challenge of turning a profit at the bigger of the two properties -- the troubled Stratosphere. A building boom is now under way that will add sparkling new casinos and thousands of hotel rooms to the strip -- the gambling Mecca's most famous thoroughfare.

"I wish him the best of luck," Solomon Smith Barney analyst Bruce Turner said. "Returns are going to be challenged. There are a lot of new choices that customers will have in the not so distant future. History says you go to the new stuff."

Stratosphere was built by Grand Casinos Inc and a private investor. But four months after the 1,149-foot tower, casino and hotel complex opened in the spring of 1996, Stratosphere's stock began tumbling and never recovered.

In November 1997, Stratosphere filed for Chapter 11 bankruptcy protection and Grand dissolved its association with the property. Grand was recently taken over by Hilton Hotels Corp.

Icahn and another Stratosphere shareholder, Bradford Whitmore, had purchased Stratosphere debt as an investment and ended up with controlling equity positions after the debt was converted to stock in the bankruptcy plan.

Whitmore, who owns about 35 per cent of Stratosphere, will also appear at Thursday's licensing hearing, said chief of investigations Randall Sayre for the Nevada Gaming Control Board.

Icahn purchased Arizona Charlie's debt in a similar manner and would convert the property from a public to a private company should he receive licensing, Sayre said.

Icahn's plans renovations at both properties, his Las Vegas attorney, Frank Schreck said.

Icahn will add 1,000 rooms to Stratosphere in addition to other amenities to boost its presence on the North end of the strip as a tourist destination, Schreck said, and also plans management changes at the company.

"Surprisingly enough, Stratosphere is generating pretty good cash flow right now and 1,000 rooms will just add to it exponentially," Schreck said.

"The good and bad news is its location. He's hoping to create more of a captive audience" by restoring the property's roller coaster, building a large swimming pool and beefing up the rest of the physical plant, Schreck said.

Turner had a different view.