There may finally be a light at the end of the tunnel for the closed Revel/Ten (“Ten”) casino hotel in Atlantic City. After being purchased in 2015 by Glenn Straub, it finally may open.
Recently, Colorado investor based TEN RE ACNJ, run by Colorado-based businessman Bruce Deifik, purchased the Ten from Straub. They are expected to invest more than $375 million to buy and reopen it, according to a report from Moody’s Investors Service detailing the deal’s proposed financing (see link). According to the report, AC Ocean Walk LLC which is majority owned by TEN RE ACNJ will pay $200 million for the property and invest an additional $175 million. The property is expected to reopen in May 2018.
This sale comes at an opportune time because in 2018 the United States Supreme Court is expected to overturn the Professional and Amateur Sports Protection Act (PAPSA), which bars states from implementing sports gambling (see link).
Among the Atlantic City casinos, the new Ten (no new name has been announced by the new owners) benefits the most from such a ruling. It has approximately 130,000 square feet of gaming space (see link). Since it’s opening in 2012, critics and revelers alike have been suspicious of the need for such a grand area expanding the entire length of the its building. That grand area however means it is the only casino on the East Coast that has the space and facilities for a sports book to compete with "extravagant" sports books existing in Las Vegas (see, e.g., MGM Grand Las Vegas, Wynn Las Vegas). Thus, it will become the “premier“ sports book in Atlantic City and potentially on the entire East Coast.
It is expected that the new Ten will take the lead in introducing e-sports to attract "millennials" to compliment their "familiarity" with technology and developed skills. This will provide a multi-faceted “attraction” to the struggling resort town further supporting efforts to attract a new (and younger) crowd. This “youth movement” should spur entrepreneurship in the gaming industry, including the development of new technologies to grow the industry. These new technologies will extend beyond Atlantic City and its casinos to all gaming outlets across the country (and potentially around the world) and the technologies and their intellectual property will need to be protected.
The revitalization of Atlantic City is now firmly on going especially in the northern end of the island (the so-named inlet area). The revitalization that started in this area, with the reopening of the Showboat hotel, the rebranding of the Trump Taj Mahal into a Hard Rock hotel and casino, and soon the re-opening of the Ten should make the north end of the island as much of a destination as the center. As with the entrepreneurship based on the gaming industry, Atlantic City will benefit from the expansion of gaming related businesses and increased visitors to the area.
photo by Dough4872