NJ approves Ocean Casino’s hedge fund owners
The state gaming regulators from New Jersey granted interim casino authorisation for Ocean Casino Resort to Luxor Capital Group.
US.- The New Jersey Casino Control Commission has granted interim casino authorisation for Ocean Casino Resort to Luxor Capital Group. The decision came after a lengthy public hearing and with a number of financial conditions.
The state Division of Gaming Enforcement (DGE) had recommended the financial conditions to ensure the casino’s stability. This interim authorisation allows Luxor Capital Group the temporary control of the casino.
This approval is the first step into a lengthy review before the hedge fund can receive the casino licence approval. The facility reopened on June 27, 2018, after years of instability, but still struggled to achieve good results. Luxor assumed control of the facility earlier this year through a trust agreement.
“We’re excited to be of a part of Atlantic City’s future and Ocean Casino Resort’s continued success,” said Mike Conboy, Luxor partner and director of research. “We look forward to working with the employees and management team.”
Furthermore, James Plousis, chairman of the Casino Control Commission, explained the decision to grant them the authorisation: “[The casino’s] financial condition has indeed improved, it remains critical that the regulatory authorities continue to monitor its ongoing financial stability through the ICA process at a minimum.”
“We are all acutely aware of this property’s past struggles. In fact, there were real questions as to whether this asset would ever be operational again,” Plousis said. “Acknowledging that it was not its original intention, I am happy that Luxor has taken an ‘all in’ approach to its investment. By all accounts, it appears that (Ocean) is competitive and positioned to generate positive cash flow.”
