After opening back in June, the Ocean Resort Casino has failed to gain a foothold in the Atlantic City market. After struggling to keep up with competitors, the casino is now having an issue with construction workers, as the former employees say they have not been paid. It seems problems are mounting for the venue, and it may only get worse from here.
It seems warning signs are starting to pop up that indicate the property is in trouble. Yesterday morning, the casino requested that the Casino Control Commission remove an application for temporary approval of a senior executive for the company. Meetings are also being canceled. Bruce Deifik, the owner of the property, was supposed to appear during a forum this week but canceled.
According to The Press of Atlantic City…
A major issue the company is facing involves liens that were filed within the Atlantic County Clerk’s Office. Construction firms have been filing liens, claiming they were not paid by the company. Eastern Sign Tech is claiming that Ocean Resort owes them over $579,000. Calvi Electric filed a lien as well, but it was discharged.
The casino cost $2.4 billion to construct and it was estimated that once completed, the first fiscal year would bring in just over $384 million. However, the casino has not been as successful as estimated. The venue earned $84 million from July to November, with only one month in that time frame reaching $20 million. The casino continues to be at the bottom or close to last place when it comes to monthly casino revenues.
On top of the issues plaguing the casino, they are also being sued by a former partner. Back in December, a lawsuit was filed against the casino by a former partner involved in the HQ2 club. The lawsuit is seeking $10 million, as Joe Morrisey claims that he never received his fair share from a beachclub/nightclub of the property.
Reportedly Morrisey is due a cut from the seven-figure profits and had to confront Bruce Deifik over sexual harassment allegations from employees of the HQ2 salon. Morrisey claims that he helped Deifik rise the $10 million needed to renovate the club space. Reportedly, Morrisey was set to receive 30% of the profits from the club, plus a $200,000 salary. A total of 49% was to be provided if the club was sold.