Just as New Jersey thought it was turning a corner on casino finance, another Atlantic City resort is preparing to file for bankruptcy protection.
The Atlantic Club Casino Hotel will not be joining many of the other casinos on the Atlantic City strip in applying for a license to run an online casino in the American state, instead, the company behind the casino is looking to sell.
The Atlantic Club, based on the Atlantic City boardwalk, is one of the smallest casinos in the city, and has been around since 1980, although it has undergone a number of name changes since then. Starting life as the Golden Nugget, it changed its name to the Atlantic Hilton, before becoming the Atlantic Club Casino Hotel a few years back.
With mobile casinos about to appear in the US, the owners of the casino, California based Colony Capital LLC, attempted to sell to the Rational Group, who own the Poker Stars brand earlier this year. That proved unsuccessful, however, and so the owners have turned to more drastic measures.
With changes in American gambling laws, and regional regulations in neighboring states, Atlantic City has found it increasingly difficult to remain competitive. Combine that with the economic downturn, and a number of casinos in New Jersey have struggled in recent times.
With New York giving the rubber stamp to up to 7 new casinos, New Jersey faces an even more uncertain time. A large proportion of Atlantic City’s gambling revenue has previously come from New York City, but should those punters instead head to up-state casinos, the gambling industry in New Jersey could suffer even more.
The casino has raised around $15 million in bankruptcy funding so far, and their case is being handled by law firm Cole Schotz. The $15 million could be used as a floor price for the upcoming auction of the business.