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 buy the property which was shut down for good the other day. Glenn Straub, whom owns the 22,000-acre Palm Beach Polo and Country Club in Wellington, Florida, will now end up being the ‘stalking horse,’ or bidder that is lead who may be outbid by competitors at an auction on September 24. Other prospective buyers have actually until September 23 in order to make offers.

Straub said this week that his offer ended up being ‘an chance to turn things around. That is what they need now; a new direction,’ he included. ‘Give us our six months, so we’ll really physically likely be operational. In 2 years, we’ll be 100 percent open.’

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

Casino Physician

‘When everyone thinks of Atlantic City, they think of casinos,’ Straub told USA Today, adding he dislikes the concept of Atlantic City as a casino city and would be uncomfortable with the thought of his family profiting from gambling. However, we’re uncertain a polo club for the uber wealthy 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 got Atlantic City’s best interests in mind. ‘ We feel the populous city needs what we do,’ he says. ‘we have been like physicians whom turn around sick patients. We turn around big properties.’

Although, in some of his previous transactions, we’d venture to express that he is been more like a vet putting down a ill animal. When he purchased the Miami Arena in 2004 for half the purchase price the cost it cost to build, for example, he ultimately demolished it to make way for Grand Central Park.

It doesn’t bode too well for Revel.

Intriguingly, however, Straub hinted in his interview that his plans include building high-speed rail links Atlantic City, ny City and Philadelphia.

Other Bidders in the Mix

It’s very early days, however, 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 ended up being $20 million, incidentally, however the deal fell through whenever Trump Entertainment was not able to get a release on its mortgage, since the senior lender declined to approve the purchase at such a price that is low.

Meanwhile, investor Carl Icahn is additionally a feasible contender. Icahn, while the holder of many of Trump Entertainment’s financial obligation, stands to just take over both the Trump Plaza and Trump Taj Mahal as a result of the moms and dad company’s bankruptcy filing this week.

Regardless of the outcome, however, the Straub deal advantages Revel and its particular creditors by setting a base price for the auction and ‘increasing the reality that the very best purchase that is possible for the assets will be received,’ explained court documents. Straub has made a $10 million deposit and would receive a $3 million breakup fee whether it’s outbid at auction, in accordance with proposals.

Dutch Regulators Warn Sports Betting Sites to Stop Ads

Regulators in the Netherlands say their campaign to limit sports betting sites in the country have been successful. (Image: AP Photo/Peter Dejong)

Dutch regulators don’t want sports sites that are betting target consumers in the Netherlands, so they’ve gone after organizations that have tried to attract players there who wish to maintain on major events. Now, the Kansspelautoriteit (KSA) states that their efforts have been largely effective in minimizing the activity from all of these rogue operators.

Based on the KSA, a letter-writing campaign that has been aimed at warning operators against targeting Dutch citizens has restricted what they called ‘excessive’ advertising of such services through the World Cup and also the Tour de France, both occasions with major followings in the world. In total, the KSA stated they wrote letters to eight operators, and all eight have ceased the activities in question.

Companies Comply with Dutch Requests

According to the regulatory body, all of the companies has stopped promoting their brand into the Netherlands. In addition, the companies took steps that are additional such as for instance closing promotional internet sites and Dutch-language Twitter records that were created to attract players to their sites.

Those actions were apparently sufficient to satisfy the KSA. The regulator told the eight businesses that no more actions would be taken against them, thanks to their compliance with the requests manufactured from them Nonetheless, the KSA has additionally reminded operators that with the Netherlands expected to enact Web gambling rules year that is next operators should cease any marketing tasks in the country until that time.

Poker Advertising A point of Emphasis Moving Forward

In particular, the KSA says that a look is being taken by it at poker advertising. They truly are additionally improving their efforts round the times of major events: for example, for poker advertising, they’ll certainly be making sure to look closely at what are you doing around the final table of the World variety of Poker (WSOP), while sports betting sites will face more scrutiny near major international sports.

‘The KSA does not really expect that Dutch betting ads will go away entirely on the internet,’ the business penned. ‘But regulations are being enforced, addressing situations which will trigger the largest risks for consumers first.’

Affiliates have also been targeted, and while their conformity was not quite as swift, the KSA reports progress on that front at all. Since the crackdown, at least two brand new operators have actually tried to step in to the now market that is largely vacated the KSA states these are typically now being investigated, since are some affiliate networks.

KSA Has Reputation for Heavy-Handed Techniques

The KSA has made headlines recently for their hands-on approach to enforcing gambling rules in the Netherlands. Final month, the body that is regulatory an €80,000 ($103,000) fine against an elderly couple that organized a lottery for the house they owned in South Africa.

That lottery ended up being ultimately handled in Austria, and both members of this couple held Belgian passports (though one was also a Dutch citizen). Nevertheless, because the contest possessed a website that included information in Dutch, and as a result of a meeting about the lottery on Dutch radio, it had been felt by the KSA was in violation of Dutch gaming laws. The KSA reportedly also went so far as to find blog posts to be able to establish that the lottery could be looked at A dutch event.

‘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 New Jersey sports decision that is betting decriminalize wagering at casinos and racetracks within the Garden State spark a wave of similar moves in other states? Virginia, West Virginia, Georgia and Kansas have come out in support of brand New Jersey’s stance, and several more are viewing with interest while the state seeks clarification of its position in a federal court.

Currently only four states that are US Nevada, Delaware, Montana, and Oregon, are able to provide activities betting lawfully under federal legislation. This is certainly due to a legislation called the Protection and Amateur Sports Protection Act of 1992 (PASPA), which desired to determine the status that is legal of wagering (compared to parimutuel horse and dog race) within the US, and effortlessly outlawed it nationwide.

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

On the Cards

These were more positive days for the Atlantic City casino industry, a period of growth and investment, also it appears the state felt it might do without. But today things are very different. Atlantic City’s economy is in crisis. Having a spate of casino closures, and several thousand staff laid off, it was clear something different and drastic was needed.

It had been on the cards for a time. In 2011, New Jersey residents voted overwhelmingly in benefit of repealing PASPA. In response, nj-new Jersey created the Sports Wagering Act, which attempted to decriminalize and regulate sports wagering at casinos and racetracks.

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

Floodgates to start?

New Jersey Acting Attorney General John Hoffman reported his formal legal opinion this week: ‘Sports pools operated by racetracks and casinos continue steadily to be exempted from criminal liability under New Jersey law as long as no wagering occurs on a college sport or athletic event that takes place in Nj or by which any New Jersey college team participates irrespective of where the event takes place.

‘Accordingly, no legislation enforcement or prosecution agency or officer shall … make an arrest, register a complaint against, or prosecute any individual involved in the operation of a sports pool by a casino or racetrack to your extent that such task occurs consistent with this particular Law Enforcement Directive,’ Hoffman added.

This, then, is New Jersey’s place, of which it really is clarification that is seeking a federal court: to deregulate sports betting totally and to ignore PASPA; a risky maneuver, which will undoubtedly be challenged in the courts by the activities leagues.

New Jersey’s casinos are desperately in need of an advantage over the competing casinos in neighboring states that have damaged the Atlantic City market. The decriminalization of sports betting may provide that edge, but also for how long? The floodgates may open and there’s little to prevent other states, including the neighboring competition, from following suit if the state is successful in its challenge to PASPA.