Revel in Atlantic City on Auction Block for $90 Million Starter Bid

Revel in Atlantic City on Auction Block for $90 Million Starter Bid

Florida investor Glen Straub has kicked from the auction bidding on Revel for $90 million.

Atlantic City’s Revel Casino is up for auction grabs, and a Florida property developer has provided $90 million in cash to shop for the house which was shut down for good the other day. Glenn Straub, who has the 22,000-acre Palm Beach Polo and Country Club in Wellington, Florida, will now get to be the ‘stalking horse,’ or lead bidder, who may be outbid by competitors at an auction on September 24. Other possible buyers have until September 23 in order to make offers.

Straub said this week that his offer ended up being ‘an possibility to turn things around. That’s what they need at this time; a direction that is new’ he included. ‘Give us our six months, and we’ll really actually be open. In 2 years, we’ll be 100 % open.’

Which begs the relevant question, exactly what will be open, exactly? This indicates unlikely that Straub will reopen Revel as being a casino; the Revel Casino project, after all, ended up being a cataclysmic $2.4 billion failure with huge operational costs that were hemorrhaging $2 million per week when it shut. And besides, it seems Straub features a personal dislike of casinos.

Casino Doctor

‘When everybody believes of Atlantic City, they think of casinos,’ Straub told United States Of America Today, adding that he dislikes the notion of Atlantic City as a casino town and would be uncomfortable with the notion of his family profiting from gambling. However, we’re uncertain a polo club for the uber rich quite fits in with all the boardwalk vibe either.

Whatever Straub has in mind, he’s keeping buttoned up for now, but he says he’s Atlantic City’s most readily useful interests at heart. ‘ We feel the populous city needs what we do,’ he says. ‘Our company is like physicians whom change patients that are sick. We turn around big properties.’

Although, in some of his past dealings, we would endeavor to say that he’s been more like a vet putting down a ill animal. When he bought the Miami Arena in 2004 for half the purchase price the price it cost to create, for example, he eventually demolished it to make way for Grand Central Park.

It doesn’t bode too well for Revel.

Intriguingly, but, Straub hinted in his interview that his plans include building rail that is high-speed Atlantic City, New York City and Philadelphia.

Other Bidders in the Mix

It’s very early days, though, and Straub may well yet be outbid, he attempted to buy the Versace Mansion in Miami Beach at another bankruptcy auction last year as he was on a recent venture when.

There is, based on sources, some competition. One bidder is Alex Meruelo, whose California-based Meruelo Group attempted to buy the soon-to-be shuttered Trump Plaza year that is last. The proposed sale price was $20 million, incidentally, however the deal fell through whenever Trump Entertainment was struggling to get a release on its mortgage, because the senior lender refused to approve the purchase at such a price that is low.

Meanwhile, investor Carl Icahn is also a contender that is possible. Icahn, as the holder of many of Trump Entertainment’s financial obligation, stands to just take over both the Trump Plaza and Trump Taj Mahal due to the parent company’s bankruptcy filing this week.

Long lasting outcome, however, the Straub deal benefits Revel and its particular creditors by establishing a base price for the auction and ‘increasing the likelihood that the greatest feasible purchase price for the assets will be received,’ explained court documents. Straub has made a $10 million deposit and would get a $3 million breakup fee whether it’s outbid at auction, based on proposals.

Dutch Regulators Warn Sports Betting Sites to Stop Advertisements

Regulators in the Netherlands say their campaign to limit activities sites that are betting the country are successful. (Image: AP Photo/Peter Dejong)

Dutch regulators do not want recreations betting websites to target consumers in the Netherlands, so they’ve gone after companies that have tried to attract players there who wish to be in on major events. Now, the Kansspelautoriteit (KSA) claims that their efforts have been largely effective in cutting down on the game from all of these rogue operators.

In line with the KSA, a letter-writing campaign that was aimed at warning operators against targeting Dutch citizens has limited what they called ‘excessive’ advertising of such services during the World Cup therefore the Tour de France, both events with major followings in the world. In total, the KSA stated they wrote letters to eight operators, and all sorts of eight have ceased the activities in question.

Companies Comply with Dutch Demands

Based on the body that is regulatory every one of the companies has stopped promoting their brand into the Netherlands. In addition, the companies have taken steps that are additional such as closing promotional web sites and Dutch-language Twitter accounts that were designed to attract players to their web sites.

Those actions were apparently sufficient to fulfill the KSA. The regulator told the eight companies that no longer actions would be studied against them, thanks to their compliance with the requests manufactured from them. Nonetheless, the KSA in addition has reminded operators that with the Netherlands expected to enact Internet gambling legislation year that is next operators should cease any marketing activities in the country until that time.

Poker Advertising a true point of Emphasis In The Years Ahead

In particular, the KSA says that it is having a look at poker marketing. They truly are additionally stepping up their efforts round the times during the major events: for example, for poker advertising, they’ll certainly be making sure to focus on what’s happening around the table that is final of World group of Poker (WSOP), while activities betting web sites will face more scrutiny near major international sporting events.

‘The KSA does not expect that Dutch wagering ads will recede entirely from the Internet,’ the organization penned. ‘But laws are increasingly being enforced, handling instances that may lead to the largest risks for consumers first.’

Affiliates are also targeted, and while their compliance wasn’t quite as swift, the KSA reports progress on that front side at all. Since the crackdown, at least two brand new operators have actually attempted to move to the now largely vacated market; the KSA claims they truly are now being investigated, as are affiliate networks.

KSA Has Reputation for Heavy-Handed Strategies

The KSA has made headlines recently for their hands-on way of gambling that is enforcing in the Netherlands. Last month, the regulatory human body levied an €80,000 ($103,000) fine against an elderly couple that organized a lottery for a home they owned in Southern Africa.

That lottery was ultimately managed in Austria, and both members regarding the couple held Belgian passports (though one was also a Dutch citizen). Nevertheless, because the contest possessed a site that included information in Dutch, and as a result of a meeting about the lottery on Dutch radio, the KSA felt it was in breach of Dutch gaming laws. The KSA reportedly even went so far as to locate blog posts to be able to establish that the lottery could be considered an event that is dutch.

‘Many people spoke if they were the ones who wrote them or even started the discussion,’ lawyer Bas Jongmans told PokerNews about it on the Internet, but the regulator has decided to blame the couple for all the comments, as.

NJ Sports Betting Challenge Has Hope for any Other US States

New Jersey Acting Attorney General John Hoffman, upon whose opinion that is legal challenge to PASPA is based. (Image: Star-Ledger)

Could the brand New Jersey recreations gambling decision to decriminalize wagering at casinos and racetracks in the Garden State spark a wave of similar moves in other states? Virginia, West Virginia, Georgia and Kansas have already come out to get New Jersey’s stance, and many more are going to be watching with interest once the state seeks clarification of its place in a court that is federal.

Currently only four US states, Nevada, Delaware, Montana, and Oregon, have the ability to provide sports betting legally under federal law. This really is as a result of legislation called the Protection and Amateur Sports Protection Act of 1992 (PASPA), which sought to define the status that is legal of wagering (in contrast to parimutuel horse and dog racing) within the US, and efficiently outlawed it nationwide.

Exemptions were made from the aforementioned states which had currently declared activities betting become appropriate inside their borders, while New Jersey ended up being given an one-year window of opportunity, a deadline of January 1, 1993, to prepare and pass legislation permitting activities wagering, an opportunity it chose not to grasp.

On the Cards

These were more optimistic days for the Atlantic City casino industry, a period of growth and investment, and it seems the state felt it could do without. But things are very different today. Atlantic City’s economy is in crisis. With a spate of casino closures, and thousands of staff laid off, it was something that is clear and extreme ended up being needed.

It had been on the cards for some time. In 2011, New Jersey residents voted overwhelmingly in favor of repealing PASPA. In response, New Jersey created the Sports Wagering Act, which attempted to decriminalize and regulate sports wagering at gambling enterprises and racetracks.

This was challenged by the sports that are professional, which reported that the Act had been a violation of federal law and threatened the integrity of sport. This past year a judge that is federal, putting the kibosh on the Sports Wagering Act once and for all. This generated the realization that, while PASPA banned the licensing and regulating of sports betting by specific states, there is nothing in that act that needed states to enforce prohibition.

Floodgates to Open?

Nj Acting Attorney General John Hoffman claimed his formal opinion that is legal week: ‘Sports swimming pools operated by racetracks and gambling enterprises continue to be exempted from criminal liability under New Jersey law provided that no wagering happens on a college sport or athletic event that happens in Nj or in which any New Jersey college team participates aside from where the occasion takes place.

‘Accordingly, no legislation enforcement or prosecution agency or officer shall … make an arrest, file a complaint against, or prosecute any person mixed up in operation of a sports pool by a casino or racetrack to your extent that such activity takes place consistent with this police Directive,’ Hoffman added.

This, then, is nj-new Jersey’s place, of which it is clarification that is seeking a federal court: to deregulate sports betting completely and to ignore PASPA; a risky maneuver, which will undoubtedly be challenged within the courts by the sports leagues.

Nj’s casinos are desperately in need of an advantage over the casinos that are competing neighboring states that have actually damaged the Atlantic City market. The decriminalization of sports betting may provide that edge, however for how long? If the state is effective in its challenge to PASPA, the floodgates may open and there is little to prevent other states, including the neighboring competition, from after suit.

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