New Jersey’s distressed Atlantic Club has filed for bankruptcy security and is now up for auction (Image source: dol.wa.gov)
It was quite a dramatic weekend in Atlantic City.
As nj-new jersey inches closer and closer to its November 26th online casino launch, PokerStars was rejected (for the time being) for the online gaming permit within the state, the Atlantic Club declared Chapter 11 bankruptcy, and next thing you realize, the once-much-sought-after land casino ended up being rising for sale.
Going When, Going Twice
If you’re interested in buying a casino with a complete lot of history (that one was originally developed and built by renowned mogul Steve Wynn), now’s your chance. Bids must be received by November 18, plus the auction itself will require put on an as-yet-undetermined date in mid-December. a bankruptcy that is federal gave her blessings to the hotel-casino to remain running normally for now, under the umbrella of its Chapter 11 status.
After making its court filing last week, the Atlantic Club’s attorney Michael Sirota noted that ‘we do plan to move fairly quickly,’ saying the casino is too short on running budget to stay afloat for very long without a speedy sale bail out.
‘It’s the beginning of the necessary process,’ said Atlantic Club CEO Michael Frawley. Judge Gloria Burns put her stamp that is green the sale plan, with everyone’s goal being to go it right along. She also provided a thumbs up to the casino’s continued payouts to workers, some vendors, taxes and insurance coverage, and also the extension of player loyalty programs, although the property sorts out its future.
A lot of Interest Reported
Before all this happened, it was rumored that original builder Steve Wynn could be eyeing the home for purchase again; maybe now he will move around in and buy his creation back for pennies on the dollar. However if he’s still interested, Wynn might involve some competition; Atlantic Club co-chief operating officer Eric Matejevich noted in an interview last week that several unnamed potential purchasers have stepped forward currently.
And while PokerStars might have gotten a slap in the face last week with their online video gaming licensing denial by this new Jersey Division of Gaming Enforcement, they can still get a little snicker in; most experts think the ultimate purchase price for the Atlantic Club will be well below the $15 million the poker site had been willing to pay out before that deal went south back July of this season.
Atlantic Club now becomes the AC that is second property apply for Chapter 11 bankruptcy security in 2013; competitor Revel filed back in May. And a good six for the city’s 12 land casinos have actually made the same motion during the past six years, yet another sign associated with gasping-for-air aura that seems to plague the East Coast mecca that is gambling.
New Jersey has high hopes for the advent of online gambling in the Garden State; annual profits of approximately $261 million for year one will be the consensus average anticipated by some industry analysts, with the state’s projections passing the billion-dollar range by 12 months five. But being an venture that is as-yet-untried it’s really anybody’s guess. Nevada’s online poker kick off was poor by most requirements, with just two sites up and running so far, but it’s expected that New Jersey’s 9 million in population (versus Nevada’s under 3 million), combined with Internet players who may drive or fly in just to play online, will bring in many more gamblers weekend. New Jersey can also be offering a full range of internet casino games, perhaps not simply poker.
Wynn Walks Away from Philadelphia Casino License Demand
This initial casino and activity complex artist’s rendering for the Wynn Philadelphia project is now from the table
Farewell, Philadelphia that’s the term from casino impresario Steve Wynn now, after just announcing that he’ll no longer seek a land license for a project in the town of Brotherly Love. Wynn says he is withdrawing their application for a Wynn Resorts property, a task that might have encompassed an enormous 60-acre entertainment complex as well as the casino, with location plans in Fishtown on the Delaware River.
Falling Region Profits Affect Decision
A factor that is key your decision appears to have been neighboring ny State’s recent passage of casino legislation that will allow for more land gambling expansion into the Empire State. But another consideration might have simply been the general performance of casinos this season into the Philly area, including ones in Fishtown, Chester, Bensalem and King of Prussia.
In a statement released by Wynn Resorts regarding the matter, it ended up being noted that the board of directors ‘met to carefully examine the feasibility and opportunities connected with the organization’s domestic development in Philadelphia.’ Which is a way that is fancy of, ‘See ya, wouldn’t wanna be ya.’
Second Philadelphia Project
It’s not the time that is first Wynn raised an East Coaster in Connecticut and brand New York, and a UPenn graduate has walked away from a Philadelphia casino opportunity. Back 2010, a proposed Foxwoods casino that were in a holding that is seemingly endless got shocked right back to life when he said he would back the South Philly project, but after the Gaming Control Board revoked Foxwoods’ permit, he bailed, saying he would come back for a second casino license if it absolutely was provided.
But apparently Wynn’s patience is wearing thin. While a strong 87 percent of voters in Everett, Massachusetts recently authorized his proposed casino, slated to be built on a former Monsanto Chemical plant site, he has had some verbal spars with that state’s gaming commission over what he perceives as ridiculously picayune nit-picking over their organization’s company practices in Macau. Then Pennsylvania Gaming Control Board told Wynn they mightn’t make a certification decision until next Spring; six applicants had applied for the slot that is then-coveted.
And then there were five. Goodbye huuuge contact to Wynn’s carefully mapped-out plan for a a 150,000-square-foot casino with 900 slot machines, 100 table games, and a 300-room resort on 60 acres of waterfront property. And it may be a business that is perfectly solid, based on a gaming research expert at University of Nevada. David Schwartz says the area is, in fact, starting to see a level-out in profitability.
‘After six years of really blockbuster growth, now it appears to have leveled off,’ Schwartz said. ‘Remember, it went from zero to $3 billion. It could be because it’s a $3 billion industry.’
Whether Wynn now plans to try to get in on the brand new York State market, or whether he just sees the starting up of gaming there as a reason that is further disappear from Philadelphia, is ambiguous.
One thing that isn’t unclear is his intention to move ahead with plans for a fresh $4 billion Cotai Strip property in booming Macau. His first property here Wynn Macau opened in 2006 and has been a huge revenue center for him, no real matter what Massachusetts regulators may think of it.
‘We are dealing with a freshman agency that is regulatory’ said Wynn of the East Coast commissioners. ‘[ And] their preoccupation is that a gangster may get in.’
NSW Government Gives Approval for Packer Casino Hotel in Sydney
Casino mogul James Packer has gotten the light that is green a Sydney casino and six-star hotel project (Image source: Herald-Sun)
Prepare yourself, Sydney: you are in for a century of gambling, presented by James Packer. The New South Wales state government has announced an understanding with Packer’s Crown Resorts Ltd. to build a A$1.3 billion ($1.22 billion US) complex that will include both a VIP casino and a hotel that is state-of-the-art at Barangaroo.
Echo Star to Get Competition
The deal helps it be all but sure that Sydney will receive a second casino to join Echo’s celebrity Sydney property in the near future. Based on the current plan, the brand new casino would begin procedure in November 2019, and would receive a 99-year gaming license that would essentially allow the casino to operate in perpetuity.
Technically, the deal is not last quite yet. The government has entered into a binding agreement, but you may still find approvals that are necessary ahead of the task can go forward. The Independent Liquor and Gaming Authority must approve Crown Resorts being a suitable casino operator, though that seems like a formality given the organization’s success therefore the fact it has recently passed comparable tests in recent months. The six-star resort that is likely to be built alongside the casino also requires planning approval, which it’s also totally possible to get.
‘Sydney is certainly one regarding the world’s great metropolitan areas,’ Crown’s CEO Packer said. ‘It deserves one of the earth’s great hotels. I will do everything I can in an attempt to make Crown Sydney the most readily useful hotel on earth.’
Packer plans to own the Crown Sydney act as an attraction for rich gamblers from around the world particularly from China along with other Asian nations. In fact, this was a key component in the approval of the casino, as Packer promised it will be nothing such as your standard casino resort.
Unlike many casinos, play is restricted simply to people and their visitors, and most people will have to prove they’re VIP members at other casinos (or are part of other programs that are high-roller to get into the door.
No Slots for Slots
Remarkably, the casino is likewise free of slot machines a move that’s hard to believe in Australia, where ‘pokies’ are basically a national pastime. Instead, gamblers are coming to relax and play table games, with minimum bets of $20 on blackjack, $25 on roulette and $30 for baccarat. If things go according to plan, many gamblers will be playing for greater stakes than those.
The relatively reasonable table minimums may be necessary to attract local NSW residents, whom will be allowed to join the casino even when they aren’t high rollers. If they’re maybe not, though, the casino should be able to provide them with a one-day ‘cooling off’ period by which they are not permitted to gamble there another measure that is designed to ease issues about the impact that is social of casino.
The casino is expected to be described as a windfall that is major Sydney and NSW as well. According to the agreement, Crown has guaranteed that the continuing state will receive at the least $1 billion in fees and fees during its first 15 years of operation.
Every step of the way, some are still opposed to Sydney’s casino expansion while both the government and opposition are expected to support the deal. In specific, members of the Australian Greens party remain unconvinced that the venue that is new be described as a net positive.
‘NSW will are in possession of another casino with an increase of corruption pressures, more money laundering from Asian drug and prostitution cartels and more opportunities for problem gamblers,’ said Greens MP John Kaye.