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Atlantic Club Sold by Caesars

The Atlantic Club Casino has been sold by a subsidiary of Caesars Entertainment to a Florida company that is reportedly eyeing the property for use as a residence or non-casino hotel.

TJM Properties acquired the shuttered property that has been locked up and lying dormant since January 13. A joint bid of $23.4 million by Caesars and Tropicana at a bankruptcy auction in December allowed the latter to back up a truck and remove more than 1,600 slots and table games.

Caesars held onto the property for half a year before selling out to TJM last month for $13.5 million. The two are not strangers with regard to making deals for casinos, as TJM also recently purchased from Caesars the Claridge Casino Hotel, the Press of Atlantic City reported.

The Atlantic Club, as many will recall, was eyed by PokerStars as a way to enter the regulated U.S. online gambling market. A $15 million bid was accepted and PokerStars tossed $10 million of that into the pot in order to keep the struggling casino afloat. But the casino owners, Colony Capital, invoked a clause in the purchase agreement that permitted them to renege on the deal.

PokerStars then partnered with the Resorts Casino, but that attempt was shot down by New Jersey gaming regulators who found fault with PokerStars executives who chose to remain abroad rather than face the music with regard to Black Friday allegations. PokerStars has since been sold to Amaya Gaming for $4.9 billion and entry to the U.S. online gaming market has been virtually assured after all.

The Atlantic Club’s closing left the number of operating casinos in New Jersey at 11. But fewer than that are profitable and Caesars’ representatives have mentioned that the lights may be turned off at one of their four properties, with the Showboat likely first in line among Harrah’s, Bally’s, and the namesake of Caesars Atlantic City.

TJM owns and operates a number of hotels and residences for seniors that provide assisted care in the southeastern U.S. The company’s expansion to Atlantic City will likely follow in that vein.

The Atlantic Club had been a mainstay on the Boardwalk’s southern end since 1980, albeit operating under various names and owners. The casino was first known as the Golden Nugget.

 

 

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Charles Rettmuller

Charles has been an avid poker player for a number of years, both live and online. He holds a degree in journalism and previously worked as a reporter for a Chicago-based newspaper. Charles joined the PokerUpdate team in early 2012 and writes daily news articles for the site.

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