Ocean Resort Casino Finds New Owner in Luxor Capital

Under-fire Ocean Resort Casino is about to be taken over by new ownership. The Atlantic City venue, which has been marred with numerous issues of the financial and legal nature, has revealed that new owner, New York-based hegde fund, Luxor Capital Group, will be providing a series of investments intended to bring improvements to the property.

After under-performing in of revenue which did not meet expectations (only $84 million in profits gained, as opposed to forecasts of $384 million)…

…the resort has been looking for ways to remain competitive in a highly-vying market of Atlantic City, let alone revamped New Jersey as a whole.

However, legal battles with construction companies that sued the resort for not paying their workers as well as proceedings against former owner, Bruce Deifik, by his estranged business partner, Joe Morrisey, mounted even more problems on the struggling property.

Luxor to the Rescue

Luxor Capital’s first move as new owners of the venue will be the $70 million investment into the casino. The majority of this sum will be provided by the company, with the remaining portion donated by interested investors.

The full takeover can only be initiated and completed once Luxor obtains the necessary New Jersey license. Until then, strategic investments should be all but done by early February. The influx of these funds will facilitate the realization of multiple projects this year…

…and would, most importantly, provide the much-needed financial stability and flexibility. Enhancement of guest appearance will be the next priority for the resort once that has been secured.

What’s in Store?

Under new management, the Atlantic City property will see serious expenditures contributed to a new buffet, suites and rooms…

…Furthermore, there will be a major expansion of casino offerings, such as entertainment programs and annual player events.

Before Ocean Resort Casino was built, on its site was Revel Casino Hotel Atlantic City, established in April 2012. Only two years later, it was declared bankrupt and was forced to close down.

In January 2018, AC Ocean Walk took over the venue and reopened it in June of the same year under the moniker, Ocean Resort Casino. Before the grand opening (which, for better or for worse, coincided with the opening of another massive facility – Hard Rock Hotel & Casino Atlantic City), over 138,000 square feet of gaming space and 2,000 slot machines have been added in improvement of the place.

The casino offers sports betting services via their partnership with William Hill and online gambling thorough technological solutions provided by GAN.

Source:

“Luxor Capital revealed as new Ocean Resort Casino owner”, igamingbusiness.com, January 29, 2019.