NJ Casino News: Weekly Roundup

Get the latest casino news and updates in New Jersey for this week (October 9, 2021 – October 15, 2021).

Five New Yorkers Accused of Scamming AC Casinos

A group of five New York residents have been indicted by the New Jersey acting attorney general for defrauding five Atlantic City casinos out of more than $1.12 million. They have been accused of presenting fraudulent bank checks to various casinos in exchange for gambling chips at Caesars, Borgata, Ocean Casino Resort, Hard Rock, and Golden Nugget:

“The defendants were caught executing a sophisticated financial scheme spanning multiple casinos and over a million dollars in fraudulent checks,” said [acting AG Andrew] Bruck. 

“This case is just one example of the excellent work—in this instance across international borders—performed by the members of the New Jersey State Police and Division of Criminal Justice who are assigned to investigate and prosecute crimes in the casinos.”

At each of the aforementioned Atlantic City casinos, the suspects allegedly presented a pair of fake cheques, one with a value of $150,000 from TD Bank and the other with from the Bank of America for $134,000.

However, on two instances chips were unable to be obtained after Hard Rock denied the $150,000 cheque, and Golden Nugget said amounts could only be honoured on an incremental basis.

Ocean Casino Resort CEO Resigns

CEO of Ocean Casino Resort Terry Glebocki has resigned. During her two-year tenure, she helped Ocean become profitable for the first time in years:

Under Glebocki, the casino reduced expenses while carrying out renovations to the casino floor, and adding amenities for upscale gamblers, which helped grow its revenue from gambling and non-gambling sources. In April, it reinvested $15 million into the property, including interior work, as well as renovations to pools, cabanas and its beachfront.

For the first six months of this year, Ocean posted a gross operating profit of nearly $25 million, compared to an operating loss of $12.4 million in the same period a year ago.

Caesars To Get Renovations and a New Theater in $75 Million Project

Caesars Entertainment will team up with the production company for the Las Vegas show “Absinthe” to create new theater and dining projects in New Jersey and two other states. The project will cost nearly $75 million:

The first project will be a new permanent production at The LINQ Hotel + Experience in Las Vegas. To be named “DiscoShow,” the production will take place in the new Spiegelworld Glitterloft, to be opened by the fourth quarter of 2022.

Caesars Atlantic City is also getting a new theater and resident show in the first quarter of 2023. The project will incorporate the facade of the former Warner Theatre from 1929, which is currently part of the casino’s exterior facing the Boardwalk.

It is part of $400 million in renovations Caesars has pledged to make at its three Atlantic City casinos.

And a new theater and show is planned for Caesars Palace New Orleans as part of that casino’s $325 million renovation, to be completed in 2024.

Detroit Group To Buy Half of Ocean Casino Resort

Gambling regulators have approved the sale of half of the Ocean Casino Resort to the Detroit-based organization Ilitch, which owns pro sports teams, a pizza chain, and a Detroit casino. Ilitch will acquire 50% of the casino for $175 million, and they will have an equal share in operations decisions with the current owners, Luxor Capital Group L.P. $70 million of that amount will be used to complete 464 hotel rooms: 

“We are excited to welcome the Ilitch organization to Atlantic City,” Luxor said in a statement. “Their investment gives Ocean access to growth capital, and provides a strategic partner to Luxor. Over the last year, Ocean’s team has progressed under new leadership that features top executives in the gaming and hospitality industries. Since that time, Ocean has strengthened its position in the market and continues to gain market share. We look forward to moving the business forward with Ilitich’s partnership.”

Ilitch owns the Detroit Tigers baseball and Red Wings hockey teams, the Little Caesars pizza chain, and Detroit’s MotorCity Casino Hotel. The sale was announced in April.

Ocean said Thursday it will carry out $75 million in reinvestments next year, most of which will consist of the $70 million room project. It will finish 12 floors of rooms, consisting of over 360 guest rooms and 100 new suites.

“One of the ways to grow the market is to build more rooms,” Conboy said. “The demand is there 100% over 180 to 200 days a year.”