New Jersey casino to close following joint buyout

The New Jersey-based Atlantic Club casino, previously an acquisition target for PokerStars, is to close down following a joint buyout by two of its rivals.

Caesars Entertainment and Tropicana Atlantic City spent $23.4m on the bankrupt operator’s assets following an auction last week, but will shut the property down on 13 January.

The move will cut the number of casino properties in the New Jersey resort town to 11, and also reduces the number of available online gaming partnerships in the state.

Caesars confirmed it does not intend to resume gaming or hotel operations at the facility, and is “evaluating options for the use of the assets, some of which may be used in the company’s other Atlantic City properties”.

PokerStars moved for Atlantic Club in December last year, initially agreeing a $15m takeover involving contributions totalling $11m to keep the casino operating throughout the winter.

Atlantic Club owners then moved to cancel the deal on 1 May, claiming that a completion deadline had passed.

The deal eventually fell through, leading to speculation the Atlantic Club management would sell to another online gaming firm wanting to gain a foothold in the state.

However it remained one of only two Atlantic City casinos not to apply for an egaming licence and filed for bankruptcy in November. “First and foremost, I would like to express my profound admiration and respect for the employees of this company,” Michael Frawley, chief operating officer of the Atlantic Club, said in a statement.

“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.”