The Atlantic Club Casino Hotel in Atlantic City, New Jersey will close on January 13th according to news just in from the Associated Press.
The Atlantic Club Casino Hotel is going to be broken down and sold off in a variety of parts according to the bankruptcy filings. The disbursement will find pieces going in different directions: Tropicana Entertainment will purchase the 1,641 slot machines and 48 table games for $8.4 million. Caesars Entertainment will purchase the property, which includes more than 800 hotel rooms, for $15 million. The Atlantic Club's assets will hit the bankruptcy chopping block for a combined total of $23.4 million if a judge approves the buyers on Monday when a hearing is scheduled.
"First and foremost I would like to express my profound admiration and respect for the employees of this company," said Michael Frawley, COO of the Atlantic Club. "The events of the last few months have evoked an array of emotions, and through it all, the employees of the Atlantic Club have remained consummate professionals. It is because of these outstanding individuals that we were able to build considerable momentum over the last year. Unfortunately our pace was unsustainable in the extremely challenging Atlantic City gaming market."
The news, other than that reported by the Associated Press, is limited. Caesars isn't willing to release any insight into what the company has in store for the property and no comment will be given by the state Division of Gaming Enforcement until after the court hearing. And president of the Tropicana Casino and Resort, Tony Rodio, has declined to comment.
It's speculated that the Atlantic Club revenue will drop below $3 billion for 2013. The casino is expected to be operating at full capacity until the January 13th closing date according to Frawley. There were 1,659 employees still at the property as of November 13th.
The Atlantic Club originally tried to step into the online gambling market in January of this year when a partnership deal was struck with PokerStars. The deal fell through when the casino drew upon a time constraint to terminate the contract. PokerStars filed a lawsuit against the Atlantic Club but the club prevailed in court.