The Casino Control Commission of New Jersey has cleared the complex financial deal for Ocean Resort Casino. As per the deal, the casino will be able to continue operations in Atlantic City, despite losing US$23 million in its first seven months of operation.
The regulators showed concern regarding the facility despite approving the deal, Press of Atlantic City reported. “This property has clearly had (a) very challenging (past), and I’m very, very concerned about its future,” said Casino Control Commission Vice Chairwoman Alisa Cooper. “I sincerely hope that this arrangement before us today will be successful and enable this property to survive.”
The commission unanimously approved a trust agreement between Bruce Deifik, the facility’s principal owner, and Luxor Capital Group.
“The proposed divestiture trust represents a unique vehicle through which Luxor, a qualified financial source of Ocean Resort, but not yet a casino licensee or casino licensee applicant, can invest in Ocean Resort to support it maintaining its financial stability,” said Chairman James Plousis. “With approval of the divestiture trust agreement and qualification of the trustee, we will not only maintain public confidence and trust in the credibility and integrity of the regulatory apparatus, but will advance the economic stability of Ocean Resort’s casino operations.”