After being renamed from Ocean Resort Casino to Ocean Casino Resort, the Atlantic City casino is now ready go move forward after facing several challenges. The casino is set to return to profitability this month and has reduced its debt already, based on information provided by Eric Matejevich, the interim CEO that is currently managing the property. An ownership transfer is currently taking place, as Luxor Captial is set to be the new owner.
The property was first opened in 2012 as Revel Casino and then shut down just two years later. The late Bruce Diefik, a developer from Colorado, was the new owner of the venue when it was named the Ocean Resort Casino. The venue was open for just a short time before it was made known that it would be changing hands again. Deifik unfortunately died in a car crash in April and the takeover had yet to be completed. Luxor Capital has agreed to take on the property, making the name change, and planning a $70 million investment. The deal should be finalized by next month.
The majority of the investment, a total of $50 million, was used to pay down debt. The property now has an improved balance sheet, according to Matejevich.
University of Nevada, Las Vegas gambling expert, David Schwartz, feels that the debt reduction is a good sign. Mr. Schwartz stated: “Reducing the debt load will ease a great deal of pressure, making it easier for the property to invest in facilities and promotions that will draw customers. Oftentimes, putting a casino on a more solid financial footing can make a big difference.”
The resort had reportedly started running out of money in September 2018. This caused Deifik to decide to change ownership just six months after opening.
Nice April Totals:
The Ocean Casino Resort is finally making money, having a nice month in April based on slot gaming as well as hotel stays. The reportedly casino won more from slot machine game play last month than any other month since opening. They also saw their second highest hotel occupancy rate, with exact numbers in both categories set to be released later on this month.