Atlantic City’s casinos have been losing their glitz and gambling dollars to the more than 40 new rivals that have opened in neighboring states, with gaming revenue nearly halving from its 2006 peak of $5.2 billion.
Three of the 12 casinos in the city closed earlier this year, and a fourth, one of the Trump Entertainment properties, closed its doors Sept. 16.
Showboat, a Caesars Entertainment Corp property, and Revel Casino closed recently, while Trump Plaza Hotel and Casino closed Sept. 16.
Revel Casino, which cost $2.4 billion to build, opened in 2012 and closed on Sept. 2 after filing for its second bankruptcy in June. It was meant to be a Las Vegas-style resort, but its fine dining, striking design and entertainment did not catch on in a city that relies on bus tours and buffets. It was hailed by New Jersey Governor Chris Christie as a model for reviving the city when it opened in 2012.
Revel Casino had agreed to use Straub’s initial $90 million cash bid to set the benchmark for other potential buyers. Straub had said he wanted to create a university at the site to attract the world’s brightest minds to tackle social problems such as hunger.
Brookfield Asset Management won the auction for Atlantic City’s bankrupt Revel Casino Hotel with a $110 million bid on Oct. 1, 2014, said two sources familiar with the situation.
Trump Entertainment, which Donald Trump founded but no longer controls, operates the Trump Taj Mahal Casino Resort and the Trump Plaza Hotel and Casino in Atlantic City, the second-largest U.S. gambling destination after Las Vegas.
Like much of Atlantic City, the two Trump properties have suffered from a decline in gambling revenue and falling occupancy at their hotel rooms.
Donald Trump sued Trump Entertainment last month to have his name taken off the two casinos, saying the company let the casinos fall into “an utter state of disrepair.” – Reuters, Tribune reports