The Atlantic Club one of the oldest casinos that are existing Atlantic City remains up for auction (Image: Philly.com/Michael Bryant)
UPDATED DEC. 22:
Finally a taker for the Atlantic Club, but perhaps not exactly what the casino had in mind: Caesars Entertainment has apparently invest a bid for the beleaguered property, but then intends to shut it straight down since early as January 13, 2014.
Colony Capital LLC the outfit that presently owns Atlantic Club announced late last week that the sales contract would be forwarded to bankruptcy court for last approvals.
Caesars is getting the home for a fire sale price of $15 million, which includes the entire property and all its fixtures; the casino’s existing gaming equipment was snatched up by competitor Tropicana for $8.4 million, and legal processing will charge the removal of the gear to Atlantic Club.
With the closure, Atlantic City’s troubled land casino scene will shrink to 11, and four of those remaining will be properties that are caesars-owned.
The total $23.4 million sale cost gives Atlantic Club the dubious distinction of establishing a fresh reduced in casino sales; the last record that is low was Resorts Casino Hotel, sold three years ago for $31.5 million.
Who would like to buy the Atlantic Club Casino Hotel in Atlantic City? when you yourself have the cash and you are not PokerStars, of course the casino is currently up for auction, allowing anybody who has desire for purchasing the fighting property to choose it up, likely at a deal price.
Going, Going, Still Here
However, after two days at auction, there nevertheless hasn’t been a buyer. That does not mean that nobody will pick the casino up: even though it could well function as the least associated with the dozen casinos in Atlantic City, it is still a casino most likely, and has now a substantial amount of potential value. The casino hopes to have someone ready to make a purchase by and it’s likely that talks will be ongoing with potential buyers in the days to come monday.
Nevertheless, the method is certainly going a bit slow than anticipated. Whenever the Atlantic Club Casino went into bankruptcy, the bankruptcy court set away a schedule for the sale of the casino that assumed a buyer is found by the day that is second of. Which means the schedule that is entire of has been pushed back, by having a hearing to obtain a judge’s approval for any sale being pushed back to Monday early morning.
That purchase may have just develop into a little more complex. Regional 54 associated with the Unite-HERE union has asked a judge to block any purchase of the Atlantic Club that doesn’t include a guarantee from the client that they will assume the current worker contract, or at the least negotiate a new one with the union. The union, which represents a variety of different casino and resort workers, filed their objection just in time and energy to meet a last-minute deadline.
In line with the union, the Atlantic Club didn’t conform to a federal bankruptcy code legislation that needs both notification to the union, and negotiations before they is permitted to terminate a labor contract that is existing. They do say that none of the potential buyers have met this legal requirement either, which may mean they’d have to undertake the contract that is existing.
Long History in Atlantic City
The bankruptcy and sale of the Atlantic Club are simply the final chapters in the story of a casino that is long-struggling. Previously called the Atlantic City Hilton, it is one of the smallest and earliest gambling enterprises into the city, plus it has had difficulty competing with lots of its newer and much more luxurious neighbors. In recent years, the Atlantic Club attempted to rebrand it self as a haven for locals and casual gamblers, but that move only served to stave off the inevitable.
Earlier this year, the Rational Group the parent company of PokerStars attempted to purchase the Atlantic Club in an attempt to gain a foothold in New Jersey prior to the state’s regulation of online gambling. The sale might have been the cheapest in history for any Atlantic City casino, with PokerStars paying simply $15 million to gain ownership.
However, the purchase was held up because of fears that state regulators could be uncomfortable with a purchase by an online gambling company that continued operating within the United States after the passage of the UIGEA regulations in 2006. After contractual due dates passed, the Atlantic Club backed out of the offer, and PokerStars did not recover $11 million they’d loaned to your casino, which had been designated towards the purchase price.
MGM Clears Springfield Massachusetts Suitability Check
An artist’s rendering of the proposed MGM Springfield in Massachusetts, which has now passed the suitability hurdle.
The Massachusetts Gaming Commission should be filled up with warm-heartedness this holiday season; just a few times after providing Steve Wynn their papal blessing with a suitability thumbs up for his planned Everett casino project in eastern Massachusetts, they will have now done the same for MGM Resorts Overseas and its own potential Springfield casino in the western part of the state.
Technically, the commission approved Blue Tarp reDevelopment LLC (sic), but that body is underneath the 99 % ownership of MGM, with only one percent belonging up to a Paul Picknelly.
‘Our approach from the beginning of the rigorous process has been to be as forthright … as possible in order to showcase our … global work ethic and high standards,’ stated MGM in a posted statement, following the long-drawn-out approval process, that has dragged in for pretty much a year now. The intense investigation concentrated on both MGM’s financial and ‘ethical’ suitability to work in their state of Massachusetts.
Locals’ Reaction Still Mixed
Although MGM is currently the casino that is only still standing for the single western Massachusetts permit and regardless of the suitability clearance local reaction remains blended to the chance of having appropriate gambling become a brick-and-mortar reality in the Bay State.
‘Everyone wants the money. That’s what I think. The cities want money. Everyone wishes cash and thus it’s going to be very difficult,’ Stephen Jasienowski of Northampton told a neighborhood news outlet.
Good read, Stephen.
But another area resident, Tom Courtney of Wilbraham, told the headlines which he believes the casino is actually a benefit that is definite the region, which has been hard-hit by the economic recession of the past few years.
‘Springfield’s gone through some difficult times therefore I think maybe something such as this could not be an idea that is bad the general area,’ stated Courtney.
The 2009 November’s casino referendum vote in Massachusetts was rocky, depending on which parts of the state were up for vote, but both Everett where Steve Wynn’s casino project is on the fast track now and Springfield was able to pass by way of a margin that is wide. Other areas like Suffolk Downs’ planned East Boston/Revere home were met with oddly divergent views; while East Boston summarily rejected the proposal, Revere overwhelmingly approved it, and along with new partner Mohegan Sun, Suffolk Downs is now pursuing a redo that is revere-only their plans, with the blessings regarding the video gaming commission.
Ought To Be Comprehensive Steam Ahead Now
Using this suitability stamp of approval, Springfield’s chief development officer Kevin Kennedy foresees hanging around from here on out for the MGM casino project inside their city, with official licensing likely to come through some time in May.
‘If we do everything correctly, and we continue on the path that we are on and also have been on for quite a while, i do believe we’re on the correct path so i believe we’re gonna be fine,’ said Kennedy, redundantly.
Should that licensing come through as planned, MGM might start ground that is breaking exact same month, which would mean the new Springfield casino could possibly start as early as end-of-year 2016.