New York Private Equity Firm Offers $220 Million for Shuttered Revel Casino

A private equity firm has reportedly proposed to buy Atlantic City’s shuttered Revel casino for the amount of $220 million. The Press of Atlantic City reported on Wednesday that Digital Launch has been representing the unnamed firm from New York City.

Alex Fredericks, Operations Director at Digital Launch, told local media that the offer was lodged in the past 10 days. According to its official website, Digital Launch is a New York City-based marketing firm that represents brands by deploying innovative campaigns.

When asked whether he has received an offer for the property, current owner Glenn Straub told local media that he was not aware of such proposal. The Florida real estate developer bought the former Revel casino back in 2015 for the total amount of $82 million, or just a minuscule portion of its original $2.4-billion price tag.

The Atlantic City Boardwalk resort was launched in 2012, but continued unprofitability shut it after two years. Revel became one of the five Atlantic City casinos to have closed their doors between 2014 and 2016.

Since buying the property, Mr. Straub has announced several deadlines for its reopening, but missed them all, the last one being in mid-June. A ruling by the New Jersey Casino Control Commission has been among the main setbacks to have prevented the former Revel complex from swinging its doors open for customers.

The state’s casino regulator has required from Mr. Straub that he obtained a casino license for the gaming section of the property. However, the real estate developer has repeatedly refused to apply for such a license, arguing that he did not need one as he would lease the casino floor to a third-party operator.

Mr. Straub has appealed the Casino Control Commission’s ruling and is now waiting for a final decision. Under previous plans, the shuttered casino resort would have been reopened without a casino section. It was later on decided that the gambling floor would be an important part of its operations.

Multiple reports about Revel’s (now rebranded as TEN) potential sale have been surfacing over the past several months. Mr. Straub has told media that although they were not planning to sell the property for the time being, a good price may change their mind.

Support for Revel’s potential sale has grown significantly due to the Florida businessman’s continued failure to reopen it. Atlantic City Mayor Don Guardian revealed in June that several investors have expressed interest in purchasing the property. Gov. Chris Christie has also been among the officials to have called for a sale, saying that Mr. Straub has apparently failed to deliver on his plans and promises.

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