Like its predecessors at Revel, management at Brookfield US Holdings found itself with an albatross around its neck: the cost-intensive Inlet District Energy Center. The standalone power plant cost the resort $1.25 million a month. Brookfield hoped to reduce those costs but couldn’t. The interest rate, 12% on bonds and as much as 18% on equity, was too onerous. The bondholders want to be paid what they were promised when the plant was built and Brookfield evidently doesn’t have the scratch. Finding Revel too rich for its blood, it’s scrapping the purchase.
Spurned Revel bidder Glenn Straub, who’s been challenging the outcome of the bankruptcy auction. was quick to take credit. “Obviously Continued >>
As you’ve read here earlier, the Massachusetts Gaming Commission is eyeing the concept of “play management.” It’s a somewhat paternalistic concept wherein players pre-set a loss limit and are rewarded with free-play credits, points or other incentives for staying within that limit. “It’s to let people go to casinos and enjoy themselves instead of walking out with that horrific feeling of regret because they spent more than they wanted to,” rationalized MGC consultant Judith Glynn. MGC Chairman Stephen Crosby adds that it targets “maybe 10 percent to 20 percent” of players.
The American Gaming Association is pushing back, bombarding the MGC with a four-page letter which, among other arguments, says that it’s “disproportionate to Continued >>
Building conference centers in Atlantic City, it seems. Add Resorts Atlantic City to the brief list of casino trying to diversify their appeal by going for the meeting business. It won’t be as grand as the one as Harrah’s Resort but, at a $9 million budget, will be wallet-friendly for Mohegan Tribal Gaming Authority, which runs Resorts. “This project speaks to a specific niche,” said consultant Cory Morowitz, referring to small business meetings. Resorts hopes to have the project finished by July, when the appeal of Atlantic City is at its peak. Speaking for owner Morris Bailey, Morowitz said, “The project completes the repositioning of Resorts.”
The project will be funded either entirely or at least in part in redevelopment credits from the Continued >>