Florida property developer could make big profits from former Atlantic City land casino

Back in 2012 the spectacular Revel casino and resort opened its luxurious doors in Atlantic City on the completion of a $2.4 billion project. Three years later, having failed commercially, the grandiose building was up for auction, and after much dispute, acrimony and publicity it was sold in 2015 for a mere $82 million to billionaire Florida property tycoon Glenn Straub (see previous reports).

Straub, who has rebranded Revel as TEN has had some big ideas, but little if anything has materialised since then due to regulatory problems, prompting local authorities to urge Straub to get on with it or sell the property to someone who will.

Straub has refused to bow to a New Jersey Casino Control Commission requirement that he obtain a casino licence for the gambling elements within the property, arguing that he plans to lease that part of the massive building to a third party.

This week a potential buyer for TEN emerged, according to the Press of Atlantic City, which reported that a New York private equity company represented by a NY marketing firm titled Digital Launch, has made a $220 million offer.

Even at face value and before negotiations, that would leave the Florida developer with a handsome profit….but he has thus far denied receiving such an offer.

Digital Launch executive Alex Fredericks is, however, adamant that the bid was lodged in the past 10 days. There have been reports of other interested parties, but Straub has maintained that he has no immediate plans to sell, although he is prepared to consider reasonable offers.

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