The Ocean Resort casino facility in Atlantic City, New Jersey will be changing hands soon. After just six months of active cooperation, the seaside resort seems to have taken on too much of a challenge.
Its current owner Bruce Deifik stated that the facility will be acquired by a company that is prepared to put a major investment in the entire business – the sum mentioned is in the range of $70 million.
However, Deifik did not state which company is this going to be. It is known, however, that the company will take over a major stake in the Ocean Resort casino.
Last year Deifik let people who were on the run for hurricane Florence stay in the hotel.
The current owner and his family will keep a small stakeholder part of the Atlantic City casino, but this will be a non-controlling ownership setup. Deifik took the chance to thank more than 3,000 employees for their work to bring the facility to life and make it prosper.
He also underlined that the sale should keep the same process alive and allow the casino to grow into its next phase of operation. The hopes are that none of the same employees will lose their job as the result of the ownership transition and that the new owners will prefer to keep them on board for the casino’s future. But, this will only be known once the next owners decide to come out and publicly state their plans.
Atlantic City’s Troubled Casino Landscape
The changing of hands cannot be interpreted in any other way than to once more point out how challenging the Atlantic City gambling industry has become.
Last summer, two major casinos opened up in the city. One was Ocean Resort while the Hard Rock Casino also opened its doors in Atlantic City. The two of them upped the number of the big casinos in the city to nine.
Now, it looks like the market saturation has been gravely underestimated, just like it was between 2014 and 2016 when five properties in the city closed down as well.
Based on the tax revenue you can say that the overall revenue in Atlantic City are going up, which is also what gaming experts predicted. But the bigger pie has to be shared with more casinos.
Others point out that a similar state of ebb and flow has continued in Atlantic City ever since the start of the 2000s. Before Ocean Resort become the current venue, it was the Revel Casino and Deifik was positive that his management will improve any problems the previous facility had with its business operation.
That is why the new casino reconfigured the casino floor, made gambling more inclusive based on income and levels of skill and improved customer service.
None of that seems to have worked sufficiently to allow him to keep his property, not counting the unlikely possibility of a sale that has not been motivated by a dire business outlook.
It is now up to the new owners to see if they can make Ocean Resort work better or is the current Atlantic City market simply too crowded for nine big casino facilities.