In a curious bankruptcy-court resolution, the Atlantic Club Hotel was sold to two buyers. Tropicana Entertainment — probably getting the better part of the deal — paid $8.4 million for the gambling equipment and player database. Caesars Entertainment spent $15 million for the hotel furnishings. It will simply close the place and pay to mothball it. Strange as it may seem, Caesars does have the cash on hand for this superficially frivolous purchase, despite all its troubles on Wall Street.
Atlantic Club waitress Pat VanWoeart was in deep denial, saying, “We knew someone would buy us, but we just didn’t expect someone would buy us to cut out the competition, because we are the best boutique casino in the city. But Caesars came, and I guess they just can’t stand the competition.” Yup, that must be it.
It was an economic fact of life that there wasn’t enough gambling to go around in Atlantic City and one or two other casinos might have to pack it in. Also, this marks the end of the Colony Capital era in the casino industry, to which one can only say: Good riddance to bad rubbish.
CityCenter must be wondering if it will ever be rid of the Harmon Hotel. Demolition was to have started three weeks ago and keeps getting pushed back. D-Day is now somewhere in mid-January. CityCenter wants to get on with suing for its $393 million in construction costs but insurer FM Global continues to make a convincing case that it’s not had enough time to inspect the derelict hotel.
Foxwoods Massachusetts, having been smacked down in Milford, is recovering and looking to get back into the hunt. CEO Scott “Woody” Butera is kicking the tires on the southeastern region (barring a miracle, the only one Foxwoods could get into at this point). He’s had serious talks with Fall River, home of Lizzie Borden, and the license won’t be awarded until next November, giving him plenty of time to look. If the casino-selection process in Massachusetts seems like dozy affair, you’ve got good company from Steve Wynn and others.
Running for cover. Lest he incur anyone’s wrath, Wisconsin Gov. Scott Walker (R) may hold off on the controversial Dairyland casino ruling. Seems that Walker may want to be safely re-elected before doing anything.
