While half a dozen New Jersey casinos have entered the realm of regulated online gambling, the Atlantic Club enters Chapter 11 bankruptcy proceedings.
Those proceedings typically require a listing of assets and liabilities upon the initial filing for bankruptcy protection. The Atlantic Club filed its bankruptcy action last month, but was granted additional time by the court to reveal the particulars of its finances.
The struggling casino recently detailed those financial particulars, listing assets of $17.7 million and debts totaling $16.8 million. Some of the listed creditors include slot machine manufacturing companies IGT Corp ($453,453) and Bally Gaming ($722,654). The value of the real property was excluded from the listing, with the casino simply declaring that value to be
The value was perhaps better known earlier this year when the Rational Group, parent company of the PokerStars brand, agreed to acquire Atlantic Club Casino for $15 million. But the Atlantic Club owners wiggled out of the deal per a contractual clause requiring PokerStars to first obtain casino licensing authorization within a specifed time.
A new buyer never emerged since that failed acquisition attempt, which may mean that the eventual price paid at an upcoming bankruptcy court auction later this month will fall below that $15 million amount. Should that indeed happen, it would become the lowest price tag ever for a casino in Atlantic City. A sale could be completed as soon as March.
The Atlantic Club remains in operation, but did not apply for an online gambling license as did a number of its competitors on the boardwalk. The Trump Plaza, Tropicana, Bally’s, Caesars, Borgata and Trump Taj Mahal have been offering online poker and gambling to adults within New Jersey since launching on Nov. 26.
It is likely that whoever steps up to buy the Atlantic Club would do so with an eye toward also participating in the state’s online gambling regime. Many thought that the casino’s value increased substantially when New Jersey lawmakers approved Internet gambling legislation in February because of the online license rights available only to existing land-based casinos. But, unfortunately for the Atlantic Club, that has turned out to not be the case.