As the Boardwalk takes four steps backwards with Casino closings it moves one step forward with a new gambling playground.
A federal bankruptcy judge Gloria Burns slammed her gavel down last week declaring Revel sold to Brookfield Asset Management for the bargain basement price of $110 million.
Revel Casino cost 2.4 billion to build and closed on September 2nd after a 2 year run without turning a profit. It is the 4th casino to close this year in Atlantic City and may not be the last with rumors of Trump Taj Mahal closing on November 13th.
A Florida developer Glen Straub was none too happy about being the losing bidder complaining that Revel’s lawyers didn’t keep their promise to share competitor’s bids. The Revel camp adamantly denies such claims.
Revel attorney John Cunningham commented on the sale:
"The best news is Revel is going to reopen as a casino. It's not going to be a university."
This was a jab at Straub who had proposed using the property as a university. According to Cunningham Straub planned on a higher bid but did not do so during the all night auction. A decision to take Brookfield’s bid was decided in a quick sale instead of waiting a week later for a possible new bid by Straub.
Cunningham told the judge:
"This is a disgruntled losing bidder.
Mr. Straub had to put his money where his mouth is. He didn't do it.
Our decision was to take the bird in the hand. It was too much money to risk."
Straub had complained during auction that he has a medical condition and had left his medication in Florida putting his health at risk.
He told the judge about the duration of the auction:
"I was wandering up and down the streets, which is what caused my medical condition. It was cold, high anxiety. This is life and death here. How can they keep continuing to do this?"
The Revel deal will take approximately 60 days to close.
SassyGirlMe
9 years ago
Full Member
This is a mess. I feel really feel bad for those whom invested in Atlanta casino's and thinking it would bring customers back. It is obvious that ALL who invested is going to either wait it out or take a big loss. As per the article above bargain basement price of $110 million and it cost 2.4 billion to build. WOW not to...
This is a mess. I feel really feel bad for those whom invested in Atlanta casino's and thinking it would bring customers back. It is obvious that ALL who invested is going to either wait it out or take a big loss. As per the article above bargain basement price of $110 million and it cost 2.4 billion to build. WOW not to mention the money loss during the 2 years that it was in operation. Why would anyone pay to even have a casino at this location if its a loss cause? I don't get it,
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jade
9 years ago
Super Hero
After reading that article about the Trump Enterprises Casino, Taj Mahal dropping the employee healthcare and basically trying to get all these concessions, The employees of the Casino should get in touch with the new owners to find out when the new casino will open and apply for the openings quitting Trump Enterprises....
After reading that article about the Trump Enterprises Casino, Taj Mahal dropping the employee healthcare and basically trying to get all these concessions, The employees of the Casino should get in touch with the new owners to find out when the new casino will open and apply for the openings quitting Trump Enterprises. With that said. I recently became aware that some of the US land based casinos have online casinos as part of their total casino operations . Of course, I also understand NOW that you must be present (not as resident, just present) in the state the casino is operating. This article made no mention that the new casino replacing Revel Casino in Atlantic City will have any type of online gambling as part of its total operations. The other article I read about Caesars Casino has an online casino. As I stated above, you can play at the online casino if you happen to be present in that state at the time you go online to play. I don't understand. Federal Law prohibits online gambling for US citizens. Until the federal law changes, I thought that you could not open an online casino if you live in the US, even if gambling is legal in your state......................
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jade
9 years ago
Super Hero
Maybe some of the people who lost their job with the several casino closings will be able to get a job at the new casino. As for this guy Straub, "sour grapes."
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aleksandar vlaisavljevic 10 years ago Newbie
failre of revel casion was breaking business news even in my country, far far away. Revel's reopening as a casino is also big news.. But Trump's Taj mahal? To fail? Its huge! On the other side, lots of Trumps ideas failed, like vodka, university, trumps ice...not small list
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