Oceanfront Casino Hotels Atlantic City

Posts Tagged ‘Atlantic City News’

MGM to Sell It’s Share of Borgata Atlantic City

Atlantic City, New Jersey casino regulators on Thursday approved the $73 million sale of land underneath the Borgata Hotel Casino & Spa as part of MGM Resorts International’s exit from the nation’s second-largest gambling market.

The state of New Jersey Casino Control Commission approved the sale of 11.3 acres to Vornado Realty Trust and Geyser Holdings, through their newly formed company Atlantic City, New Jersey GL LLC. It’s part of the casino company’s forced exit from Atlantic City over its ties to the daughter of a reputed Chinese mob boss.

MGM Resorts is selling its half-interest in the Borgata itself following an ultimatum from New Jersey casino regulators that it sell its 50 percent stake in Atlantic City’s top casino, or cut ties with Pansy Ho, its partner in a casino in the Chinese enclave of Macau. Ho’s father, Stanley, has long been accused of ties to organized crime, which he denies. MGM Resorts chose to keep its relationship with Ho and walk away from the Borgata. Linda Kassekert, chairwoman of the casino commission, said the sale needed to be approved to enable MGM Resorts to leave Atlantic City under the agreement it reached with the commission in March.

The company revealed this week that it had received an offer of $250 million for its interest in the hotel. MGM Resorts would not identify the potential buyer. Boyd Gaming, MGM Resorts’ partner in the Borgata, has the right of first refusal on any sale of MGM Resorts’ half of the casino. “MGM has formally presented us with the offer; we have just begun the process of considering it,” Boyd spokesman David Strow said Thursday.

Boyd has 30 days to decide whether to exercise its right to buy MGM Resorts’ half of the Borgata Atlantic City Casino.

Atlantic City Casinos & Hotels Send Layoff Notices

Atlantic City hotels and casinos are sending out notices to its workers warning them they could be laid off soon as the struggling casino prepares to change ownership.  John Pasqualoni, Resorts casino’s chief operating officer, told employees in a memo Thursday that they will receive notices in the mail Friday as required under the Worker Adjustment and Notification Act, otherwise known as WARN.  The notices were first reported by The Press of Atlantic City.

Resorts Casino — the first in the nation to open outside Nevada — is being bought by veteran casino executive Dennis Gomes and developer Morris Bailey for $35 million. That’s the lowest price ever paid for a casino in New Jersey’s 32-year history of legalized gambling.

A casino spokesman would not comment on the notices or say how many of the casino’s 2,124 workers could lose their jobs.  The notice warned layoffs would occur Dec. 1 — the  same day Gomes and Bailey are expected to receive approval from the state Atlantic City Casino Control Commission to take over Resorts.  “We are doing everything in our power to ensure the sustainability of the property and facilitate the smooth transition of the purchase of Resorts Atlantic City,” Pasqualoni wrote in the memo to employees. “However, there are some considerations that are outside of our control and for that reason, not only is this notice a legal requirement, but I believe it is the right thing to do.”  Neither Gomes nor Peter Hoelzle, president of the RAC Atlantic City Holdings, immediately returned calls seeking comment Friday.

Atlantic City Hotels Layoff Casino Workers – News!

After Resorts Casino defaulted on its mortgage and turned itself over to its lenders in December 2009, the two sides hammered out a deal that let the lenders own the casino in return for canceling nearly $381 million in debt. The lenders formed RAC Atlantic City Hotels & Casino Holldings, which was given a one-year casino license.  RAC said then that it wanted to find a buyer as quickly as possible.   “We have no intention of operating the casino or the hotel well into the future,” Hoelzle told the state casino commission last fall.

Gomes and Bailey struck the deal to buy Resorts Casino Atlantic City from RAC in August.  Resorts opened in 1978 but in recent years has been dwarfed by newer, bigger casinos around it. It also was hurt when slots parlors opened in recent years in neighboring Pennsylvania began siphoning off its most loyal customers, mainly day-tripping senior citizens who would ride the bus to play slots for a few hours.  By fall of 2008, the nationwide recession had pushed Resorts to the brink, and the casino made no payments on its $360 million mortgage after October 2008.  Its lenders, including Wells Fargo on behalf of Credit Suisse First Boston Mortgage Securities Corp., could have foreclosed on it but chose to work out the deal in which the casino ceded ownership to them.

Hopefully, by trimming the fat, Atlantic City hotels and casinos will be able to cut costs and stay afloat into the future.

Hottest Topics
Atlantic City News
Get a locals opinion about Atlantic City, NJ from our newest blog. We will create posts with all kinds of information about attractions, concerts and sporting events, Atlantic City hotels, casinos and allot moret!