Veteran Casino Executive Aims to Revive Resorts Atlantic City

Veteran Casino Executive Aims to Revive Resorts Atlantic City

Veteran gaming executive Dennis Gomes is set to receive an approval this week from New Jersey Casino Control Commission for his proposal to acquire Resorts Atlantic City. Market observers said Mr. Gomes is fearlessly taking the challenge to do what several other popular gaming, entertainment, and Real Estate experts failed to accomplish in the past years: to lead the oldest casino in Atlantic City into a turnaround.

Mr. Gomes is partnering with Morris Bailey, the New York property mogul, to purchase the troubled New Jersey-based casino for about $35 million. They aim to buy the gaming property from a consortium of lenders headed by Wells Fargo Bank. Resorts Atlantic City was taken over by the group of lenders in December last year after its former operator Colony Capital LLC, which bought the casino in 2001 for $140 million, failed to repay a $360 million mortgage and was dragged to foreclosure.

Mr. Gomes said Resorts Atlantic City is set to cease operations if it would not be bought by him. He disclosed several plans he holds for his potentially new acquisition. The name would be retained, but it would be subjected to a rebranding scheme. The new management would also cut costs significantly by trimming salaries of current employees, who intend to keep their jobs. More details of such plans are set to be disclosed when Mr. Gomes faces the Casino Control Commission of the state.

The Casino Control Commission is a five-member panel. It functions as the main regulatory body that oversees the $3.9 billion casino industry of Atlantic City in New Jersey. The commission is expected to instantly approve the proposed ownership switch.

Resorts Atlantic City had dismal financial results in the past months. The casino house has, so far, incurred a loss of $13.7 million from January to September. The company's revenue has declined by 18.2%, which is, so far, the steepest revenue drop incurred by all 11 gaming halls in the city.

The former owner of Resorts, Colony Capital LLC, is headed by industry mogul Tom Barrack, who was once tagged as the Greatest Real Estate Investor of the World' by no less than the prestigious Fortune Magazine. Mr. Barrack and his firm walked out from their overall investments in the casino during the lender takeover. Resorts Atlantic City has had numerous owners in the past.

For more Real Estate news and developments, visit ForeclosureConnections.com.

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