The first casino to open in Atlantic City is gambling a transfer of ownership to the mortgage holders may bring viability back to the historic gambling venue.

Resorts Atlantic City opened thirty-one years ago as the first to operate following the change in New Jersey law allowing casino gambling. Now, facing foreclosure as earnings plummet, Resorts owners are arranging an unprecedented deal in Jersey gaming by attempting to trade the title to the casino to satisfy claims against it.

Both sides have agreed to the deal, which would give ownership to a consortium of lenders, who are forming a corporation to run the casino. Colony Capital would surrender all interests in the gambling venue, while partner Nicholas Ribis would stay on as manager, and retain his ownership of the gaming equipment used by the casino.

The New Jersey Gaming Control Commission will have to approve the deal. At question whether the new corporation will need a new gaming license, or whether Atlantic City regulators will accept the existing license as adequate.

Resorts is considered something of a relic, says Atlantic City resident Joe Snead.

"Resorts doesn't have the giant capacity some of the modernized casinos do, but it's also historic," says Snead. "Hopefully, whatever happens with the ownership won't change the casino. It's a symbol of Atlantic City's past."

Resorts revenues are off 22 percent from last year, Amazingly enough, the casino actually ranks eighth out of the eleven Jersey casinos in revenue.

Published on August 14, 2009 by JulieWong

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