Caesars Entertainment is said to be eyeing the purchase of the Revel Casino Hotel in Atlantic City, which went through bankruptcy proceedings last year.
New Jersey is home to 11 casinos following the closing of the Atlantic Club earlier this month. Of those 11, Caesars already operates four – Bally’s, Harrah’s, Showboat and the Caesars Atlantic City.
The shuttered Atlantic Club was acquired under a joint bid by Tropicana and Caesars that saw the Tropicana grab hold of the gaming equipment, while Caesars took control of the property. No plans have been made to re-open a casino at that location.
The Revel opened its doors in spring of 2012 and filed for bankruptcy protection the following year. The casino is currently owned by hedge fund investment concerns. That group of owners assumed control following the bankruptcy filing and may be out of their league in the casino game without any ties to a large organization.
A company such as Caesars could do well with the Revel, Spectrum Gaming Capital CEO Robert Heller told Bloomberg. Spectrum Gaming is an investment firm affiliated with the Spectrum Group that closely watches the Atlantic City gaming industry. Heller said that Caesars would be able to attract customers to the Revel via its loyalty program and huge database of customers.
Last month, it was reported by the New York Post that Hard Rock International also had its sights on the Revel. Hard Rock is owned by the Seminole tribe in Florida. If either Caesars or Hard Rock are interested in making a bid as expected, they have only two more weeks in which to do so.
The Revel was built at a cost of $2.6 billion. The casino perhaps entered the market at not the most opportune time considering that Atlantic City casino gaming revenue has tumbled 43% over the last seven years.
Online gambling legislation signed by Governor Chris Christie last February was done in an effort to recoup some of that lost revenue. The new Internet gaming regime took in roughly $8 million in December, its first full month of operation. That total is slightly behind projections, but is expected to increase as time moves forward.