In New Jersey, the state gambling regulator has reportedly agreed to a complicated agreement that’s to eventually see a private equity fund presume a vast majority stake in Atlantic City’s fighting Ocean Resort Casino.
According to a Thursday report from The Press of Atlantic City newspaper, the three-member New Jersey Casino Control Commission approved the deal on Wednesday afternoon to provide New York City-headquartered Luxor Capital Group the capability to increase its holding in an entity known as AC Sea Walk, that is responsible for Ocean Resort Casino, from 34% to 83%.
The newspaper reported that the complex arrangement approved by the eastern state’s gambling regulator has entailed the former Chief Operating Officer for its now-shuttered Atlantic Club Casino Hotel, Eric Matejevich, being called the principal trustee for Ocean Resort Casino. It clarified that this condition of affairs has been designed as a means to maintain the Boardwalk casino available while Luxor Capital Group employs for an online casino license, which is a process which could take up to 120 days.
This licensing process is to entail an around 90-day evaluation of Luxor by the New Jersey Division of Gaming Enforcement alongside an up to month-long wait in order to Provide the New Jersey Casino Control Commission period to set a Last approval hearing. After its temporary consent has been given, the new majority owner will purportedly be required to embark upon the more lengthy and intensive route to being given a complete casino license.
In agreeing with the temporary possession change, the operator reportedly mandated that Ocean Resort Casino must adhere by 26 stipulations which have a requirement that it keep a daily operating cash balance of $10 million. In addition, the 20-acre property is purportedly obliged to hold a minimum casino bankroll of $11 million alongside having access to at least $15 million in debt providers.
Riders were added after it appeared that AC Ocean Walk had successfully sought relief from a comparable $31 million aggregated necessity in October only to fall foul of the newly-lowered obligation less than a month afterwards. Included in Wednesday’s approval, Ocean Resort Casino is currently purportedly likewise anticipated to instantly notify the New Jersey Casino Control Commission if it cannot meet any component of the new $36 million combined threshold.
Ocean Resort Casino opened to the site of the former Revel Casino Hotel in late-June following AC Sea Walk, that was majority-owned by Colorado-based property developer Bruce Deifik, compensated approximately $229 million to purchase the then-shuttered property.