Thursday’s planned auction of bankrupt Atlantic City casino Revel has been postponed, raising hopes that a buyer may be found for the troubled seaside gaming joint. Revel filed for bankruptcy protection for the second time in June and its owners said it would close the property for good by August 18 unless a buyer emerged. Revel has about 3,100 full- and part-time staff on its payroll, all of whom will be out of work if the casino shuts its doors.
Bidders were told to submit their offers by Monday in preparation for Thursday’s auction, but the day came and went without any announcement. On Tuesday, the investment bank tasked with finding a buyer told the bankruptcy court that it had conducted tours of the property with potential buyers on 13 separate occasions between June 24 and July 31, raising hopes that someone was at least considering making an offer. Revel cost $2.4b to develop but would likely fetch as little as 10% of that figure in any sale.
On Wednesday, the Press of Atlantic City reported that Chief US Bankruptcy Judge Gloria Burns had been informed that Revel had received offers but needed time to “fully analyze and evaluate the bids received.” The filing asked Burns to permit the auction to be pushed back a week to Aug. 14, so it appears Revel’s staff have another week to sweat it out.
Revel is but one of three AC casinos currently living on borrowed time. Caesars Entertainment has announced plans to close the Showboat by Aug. 31 while the Trump Plaza’s owners intend to shut their doors for good by Sept. 16. The year began on a sour note with the Atlantic Club’s closure in January and things have steadily deteriorated ever since. Analysts expect more carnage as Atlantic City revenue continues to decline in the face of expanding regional competition.
GOLDEN NUGGET UNSHUFFLED CARD CASE RISES FROM THE GRAVE
As one judge giveth, another taketh away, and the Golden Nugget’s ‘unshuffled cards’ lawsuit refuses to die. The two-year-old case began when a bunch of baccarat players noticed that the cards coming out of the dealer’s shoe hadn’t been shuffled beforehand. Knowing what cards were coming next, the 14 gamblers quickly upped their wagers, ultimately winning $1.5m from the casino. But while nine of the gamblers made it out of the casino with $550k, the other five were prevented from cashing in their $1m in chips and claimed they were held against their will by Nugget security. Cue hijinks and lawsuits o’plenty.
In June, Superior Court Judge James Isman dismissed racketeering charges the gamblers had filed against the casino, ruling that the card cockup had rendered the game illegal under state gaming regulations. But Isman has since retired, and his replacement Judge Allen Littlefield has granted a motion filed by the gamblers to reconsider that June ruling. Littlefield has tentatively scheduled a fall trial date but the Nugget plans to appeal his decision.
