The sale of the Revel Casino in New Jersey’s Atlantic City is set to be delayed, following a hearing. A federal judge postponed the sale over the weekend, whilst a hearing was established to potentially block some of the terms of the sale.
The Revel Casino had seen a deal agreed worth $94.5 million, although Glen Straub, who is a developer in Florida, could lose as much as a $10 million deposit should the deal not go through in time. According to sources, the issue with the deal is centred on the businesses inside the casino.
Mr Straub is reportedly attempting to purchase the casino, with no regards to the bars, clubs and restaurants which are in operation inside the property. Their leases may not be assured if the deal goes through, which has pushed the court to postpone the sale until the deal includes the property rights of the businesses.
The Revel Casino cost $2.4 billion to build and only opened two years ago, but on September 2, last year was declared bankrupt. Atlantic City has a completely different atmosphere to Las Vegas, and the Las Vegas-esque theme to the Revel didn’t seem to appeal to local players. In previous months, several other Atlantic City casinos have been forced to close down, as gambling in the once popular city has dropped dramatically.
Straub has already had his lawyer threaten to pull out of the sale, should the deal not go through. In the event, it could see the Revel Casino liquidated, with the futures of those businesses inside it, far from certain.