Casino News

Lacking a buyer, the mythical Atlantic Club Casino is liquidated

Tom Lasten 21 January 2014 - 00:33:46
atlantic club casino liquidation

A sad record for the legendary Atlantic Club Casino Hotel. It’s the very first land-based casino in Atlantic City to close its doors since 2006. The failure of negotiations over the purchase of this vast gaming complex established in 1980 by the American operator Poker Stars forced it to shut down. Its liquidation has benefited its two regional rivals, Caesars Entertainment and Tropicana Casino, which will pick up all the assets of the mythical old establishment of the Hilton group.

The non-acquisition by Rational Group condemns the Atlantic Club

Rational Group, a company that owns and operates Poker, has been at the center of attention the last two months. Indeed, it was expected that the seaside company of the premier global online poker room would purchase the Atlantic Club, whose finances had steadily deteriorated since 2008. But negotiations faltered, and Rational Group ultimately dropped the dossier. Fallen prey to all sorts of vultures, the Atlantic Club was finally stripped by its sworn enemies, Caesars Entertainment and Tropicana Casino, which remain the big beneficiaries of this affair.

“Six years after the collapse of the Casino Sands, the Atlantic Club ended up succumbing to the terrible effects of the financial crisis of 2008”.

In effect, as of January 13 all the assets of the Atlantic Club will change hands. On that date, which will mark the definitive closure of the former hotel-casino of the Hilton brand, Caesars will acquire the some 800 luxury hotel rooms of the establishment, with a value estimated at $15 million. As for the Tropicana, it will become the owner of 48 gaming tables and thousands of slot machines housed by the Atlantic Club. In all, their total value is at least $8.4 million.

The Atlantic Club Casino will not be re-used for gaming purposes

All in all, the exit of the Atlantic Club was rather predictable. Six years after the collapse of the Casino Sands, the Atlantic Club ended up succumbing to the terrible effects of the financial crisis of 2008. While its affiliate, Caesars Entertainment, finally agreed to acquire the casino’s physical assets, the group that runs the Tropicana must already be delighted about soon being able to re-use its games. It should be noted, however, that the purchase will not take effect until the commercial court has given its approval.

Furthermore, Caesars Entertainment affirmed that it was not in its plans to operate the gaming area of the Atlantic Club as well as the hotel to which it is now connected. In fact, the group does not envisage continuing to use the site for purposes of “gambling.” The assets purchased will likely be re-deployed for the benefit of the company’s other properties, which for the most part are based in New Jersey.

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