Revel Casino, Atlantic City’s biggest casino flop is getting back in the game under new ownership and a new name. In an official statement on Monday, Colorado developer Bruce Deifik announced that he had purchased the former Revel Casino hotel from Glenn Straub for 200 million. Deifik plans to reopen the casino this summer which also happens to be around the same time that the nearby former Trump Taj Mahal casino will be reopened under Hard Rock ownership.
The casino will be reopened with a new name, Ocean Resorts Casino, and it is anticipating to create over 3,000 local jobs. Deifik and group are also planning to bring back restaurants that were successfully operating in the casino before it closed down while at the same time offering some new venues like a top Asian noodle bar and a high-end players club.
“We are incredibly excited that we were able to take advantage of the opportunity to acquire this tremendous property at a time when Atlantic City is seeing great economic strides,” Deifik said. “Now the city has a number of exciting new projects with our property and the Hard Rock, as well as Stockton University’s new campus and the expansion of the medical center.”
For months, Floridian businessman Glenn Straub denied that there was any deal in the works for the sale of the property. He had acquired the $2.4 billion property for $82 million in bankruptcy court back in August 2015 and it was even rumored that he was planning to reopen it himself. Straub confirmed that a deal with Bruce Deifik and Moody’s Investors Service had been closed on January 4th.
The developers will, of course, face a number of significant challenges in their attempt to revive the casino. Moody’s mentioned in the statement that the project may struggle to attract a big enough slice of Atlantic City’s diminished number of casino lovers since it will be repaying debts amid tight competition from other properties – at least at the first stages. This report was based on Deifik’s plan to borrow about $255 million for acquisition and renovation costs.
Analysts Raise Concerns
There has been a lot of chatter among analysts who are mixed on whether the seven already operational Atlantic City casinos can handle competition from the two more operators, that is the former Revel Casino and the former Taj Mahal. Some analysts think that the two may heart smaller casinos and even lead to their closure. Others are quite optimistic about the new offerings, pointing out that they have the potential of attracting off-state visitors and gamblers.