Atlantic City Story - Return of the "Revel" in Atlantic City (more slots)

Straub Wins Approval to Buy Revel Casino

Posted on January 6, 2015, by Travis Reason

Florida Developer Glenn Straub has been awarded the winning bid to purchase the bankrupt Revel Casino in Atlantic City, New Jersey. The bankruptcy judge approved the sale of the resort casino for the price of $94.5 million following the pullout of a Canadian firm who had initially made a bid of $110 million.
Straub’s lawyers immediately took steps to reduce the price of the deal down to $87 million, stating that the purchase amount should be reduced because the auction was not handled as it should have been. Straub presented the same arguments shortly after the auction but the judge would end up dismissing those claims in short order.

Straub intends to file an appeal against the ruling in hopes of reducing the price. Information on the power costs to run the casino have bidders rethinking their stance on acquiring the casino.

The estimated $3 million per month the casino uses in power costs from the on-site power plant were what led to the initial winning bidder walking away from the casino deal, and it seems to be the driving force behind Straub’s push for a better price.

A lawyer representing the Florida developers also stated that Straub may walk away from the deal as well if the planned appeal is not successful. They have 30 days in which to close the Revel deal, but whether the appeal process is complete by then is unknown.

The Atlantic City casino will eventually be reopened, by whom will depend on to the final purchase price. Revenues in Atlantic City have finally began to turn around following seven years of decline, so a reopening of the Revel in time for the upcoming summer months would be a top priority for whoever purchases it.
The casino has sat idle since September when thousands of casino workers were laid off from their jobs. But new developers have an ace in the hole that the original Revel owners did not have - online gaming.

Atlantic City has begun to turn around declining revenues partially due to the legalization of online gaming in the state. Revenues from online poker, online sports betting and online slots for real money have given the Atlantic City casinos the extra revenue to show increased profits for the first time in years.

The online action is bringing back customers to the state as players are able to play their favorite mobile poker games and mobile slots games anytime they want. If online gaming had been legislated earlier the gaming resort town might have been able to stop the closure of some of the four Atlantic City casinos that shut down in 2014. But in the case of the Revel, profit was never part of the failed resort concept.

At an initial cost of $2.4 billion, the Revel Casino operated for only two years. A combination of failed new operating concepts and a declining local gaming industry doomed the Revel from the start, but now it finally has a chance to show a profit.

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My input: I personally thought someone would purchase it and make it a condo sale on the beach, with their own "small casino" downstairs, food market, restaurants, etc.

 

Hi guys!
Revel still working?

 

Florida developer Glenn Straub has emerged as the winning bidder for the bankrupt Revel Casino in Atlantic City, New Jersey. The bankruptcy judge approved the sale of the resort casino for $94.5 million after a Canadian firm withdrew their bid of $110 million. However, Straub's lawyers immediately sought to reduce the price to $87 million, arguing that the auction process was mishandled. The judge, however, dismissed these claims.

Straub intends to file an appeal in an attempt to lower the purchase price further. One of the major concerns for bidders is the estimated $3 million per month power costs of running the casino's on-site power plant. This was the primary reason the initial winning bidder backed out of the deal.

Straub's lawyers have also mentioned the possibility of him walking away from the deal if the appeal is unsuccessful. The deadline for closing the Revel deal is 30 days, but it remains uncertain if the appeal process will be completed by then.

Whoever purchases the Atlantic City casino will determine its eventual reopening. The recent turnaround of Atlantic City's revenues after years of decline makes reopening the Revel before the summer months a priority.

While the Revel has remained closed since September, new developers have the advantage of online gaming, which the original owners did not have. The legalization of online gaming in New Jersey has contributed to the revitalization of Atlantic City's revenues. Online poker, sports betting, and real money online slots have attracted customers back to the state, providing increased profits to the casinos.

If online gaming had been legalized earlier, it might have prevented the closure of some of the four Atlantic City casinos in 2014. The Revel, with its failed operating concepts and a struggling local gaming industry, had an initial cost of $2.4 billion but operated for only two years. Now, there is a chance for the Revel to turn a profit under new ownership.