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Former Ocean Resort Casino Owner Will Still Profit from the Property

Florida businessman Glenn Straub might have sold the former Revel, but he will still generate a profit from the Boardwalk property that underwent renovation over the spring and now operates as Ocean Resort Casino, following its June 28 opening, news outlet The Press of Atlantic City writes.

Mr. Straub purchased the shuttered Revel in 2015 for $82 million, or just a fraction of the waterfront property’s original $2.4 billion cost. The hotel and casino resort first opened doors in 2012, but closed after just two years of operation as it failed to turn a profit.

The Florida developer later on bought Revel’s neighboring power plant for $30 million through his Polo North Country Club LLC company. Mr. Straub initially planned to reopen the property, but failed to do so and eventually sold it at a profit to Colorado-based businessman Bruce Deifik. Mr. Deifik paid $200 million for the shuttered resort and reportedly invested another $200 million to renovate and reopen it.

Ocean Resort Casino opened doors on June 28. Among other things, its new owners were quick to jump on the sports betting bandwagon and made sure that it would have an operational sports book upon opening. Ocean joined forces with British bookmaker William Hill to operate the sports betting facility.

Agreement between Ocean’s Owners

As The Press of Atlantic City wrote in a Thursday article, it seems that Mr. Straub would still profit from the property, even though it is no longer under his stewardship. The media outlets pointed out that under an agreement between Ocean’s former and new owners, the Florida businessman will earn $1.50 for each car parked in the resorts garage from 2021.

In 2028, that fee will rise to $4 per every car parked. The Casino Control Commission was informed by Ocean officials about the agreement during a June 20 hearing the regulator held to determine whether it would grant the resort a license for the operation of casino gambling. According to initial estimates, the agreement in question would cost Ocean the approximate amount of $975,000 in 2021.

Mr. Straub refused to confirm the arrangement when asked about it by The Press of Atlantic City, citing confidentiality reasons. However, he did say that they would remain involved.

The media outlet further revealed that Mr. Straub’s investment in Atlantic City has not ended with the sale of the former Revel. It seems that the businessman and his Polo North currently owns more than 40 properties in Atlantic City’s South Inlet, including several located on the Boardwalk.

Mr. Straub also confirmed that he was interested in the vacant Bader Field. He said that he was ready to spend $70 million to buy the 143-acre plot. The airfield was put up for auction back in 2016 for a minimum price of $155 million, but received just two bids, one of which for $50 million.

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