Ocean Resort Faces Financial and Ownership Problems

After a promising start filled with high hopes and expectations, Atlantic City’s Ocean Resort Casino is coping with an increasing amount of adversities that need to be overcome should this property remain on course and keep being competitive in a cutthroat business environment.

Since its grand opening on June 27th last year – the same day Hard Rock Casino was opened – the $2.4 billion venue has not proven as competitive as was anticipated, even given its relative gargantuan stature in comparison to some smaller operators in the city.

The Press of Atlantic City is reporting that troubles of both financial and legal ilk are now looming over the resort that cannot gain a foothold on a significant market share which features nine crucial properties in the city.

Rebellion of Workers and Shuffling of Leader Cards

Several construction firms who were working on the property have filed liens with Atlantic Country Clerk’s Office against Ocean Resort, accusing the facility’s owners that construction workers were never paid the agreed sum.

One particular lien filed by Eastern Sign Tech states that it is owed more than $579,000! Another lien was filed by Calvi Electric, but was subsequently dropped.

After the construction was completed, official estimates predicted that casino will collect $384 in gross revenue in its first fiscal year…

…However, in reality, it only raked in $84 million from July to November. Remarkably, Ocean Resorts is near the very bottom among Atlantic City casinos in monthly revenues category!

Yet, that is only the tip of the iceberg of trouble brewing for the place.

December’s Accusations Resurfacing to Haunt:

Property owner, Bruce Deifik, canceled his scheduled appearance at this week’s forum. The reason may likely be the turmoil caused by the removal of application for company’s senior executive approval.

This set off the alarm in the company which is being sued by Deifik’s former business partner, Joe Morrisey, who demands to be paid $10 million in damages for allegedly never being paid his fair share for his role in opening of the HQ2 nightclub belonging to Ocean Resorts.

Morrisey claims he helped Deifik raise the money necessary for the opening of the place…

…Plus, he has confronted the casino’s owner regarding certain sexual allegations made against Deifik.

With all these issues piling on top of each other, other sources surrounding the casino have started the rumors regarding the possible sale of the casino as well as a change of ownership!

Allegedly, the resort is already seeking a new owner who should, beside assuming majority ownership, invest $70 million in under-performing casino. If the process ends successfully, Deifik and his family will keep a small, symbolic portion of ownership.

Source:

“Ocean Resort Casino facing legal, financial troubles”, David Danzis, pressofatlanticcity.com, January 11, 2019.