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Caesars Looking To Bid On Revel Casino

Wednesday January 29,2014 : CAESARS MULLING BID FOR REVEL IN NEW JERSEY?
 
Bankrupt Atlantic City casino could be another useful online gambling base.
 
US land casino giant Caesars Entertainment is considering a bid for the bankrupt Revel Casino Hotel in Atlantic City, insider sources told Bloomberg News Tuesday.
 
The property went through bankruptcy last year and offers to buy the asset close in two weeks’ time, the sources said.
 
Land gambling observers noted that the casino, built for $2.6 billion, could enhance Caesar's aging four-property portfolio in Atlantic City and provide another potential base for New Jersey online gambling operations.
 
Robert Heller, president of the consulting group Spectum Gaming Capital, said that Caesars know-how and facilities could steer more players to revitalise Revel.
 
“They could fill the place,” Heller said, noting that Revel could be “a huge upgrade” to Caesars’ current portfolio.
 
Revel did not respond to enquiries on the possibility of a Caesars bid.
 
Bloomberg reports that Hard Rock International, owned by Florida’s Seminole tribe, is among the companies interested in making an offer for Revel.
 
Revel is owned by a group of hedge funds that assumed ownership after the bankruptcy last year, but it has struggled without a connection to a larger organisation.
 
With four properties in Atlantic City, an offer to buy Revel by Caesars could run afoul of New Jersey regulations prohibiting “undue economic concentration” by casino operators.
 
Caesars' Atlantic City properties include the Showboat, Ballys, Harrahs and Caesar casinos, which account for around 41 percent of AC revenues. Latest figures show that Revel commanded just 6.2 percent of revenues.
 
Late last year Caesars bought the property and fixtures of the liquidated Atlantic Club casino resort in Atlantic City, a property that had earlier been a target for online poker company The Rational Group as it sought a base for New Jersey online gambling operations.
 
That deal fell through when Pokerstars was unable to achieve New Jersey licensing within the contract timeframe, allowing Atlantic Club owners to walk away with $15 million of its upfront money



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