Atlantic City casino owner Glenn Straub has lost a battle with regulators, having to obtain a casino license in order to see TEN become operable.
Glenn Straub is a business owner who has been trying to reopen the shuttered Revel Casino in Atlantic City for two years now. Straub invested in the property after it closed down and has rebranded the venue as TEN a new casino on the boardwalk. Straub plans on reopening the venue as TEN and does not feel that he should have to apply for a casino operator’s license since he is not going to actually be operating the venue. Instead a partner would. Straub found out yesterday that he must obtain a casino license if TEN is to be operational.
Glenn Straub has an agreement with a partner to see himself remain the owner of the property but another company would actually be operating the Atlantic City casino. Because of this, Straub does not feel that he is personally obligated to obtain a gaming license. Straub would actually only retain control of a portion of hotel rooms, the restaurants, night clubs and utilities as part of the deal.
However, the partnership between Straub and Robert Landino seems insignificant to the Casino Control Commission as the chairman, Matthew Levinson, recently stated that because Straub still has control over the property he would have to apply for licensing.
Straub was not surprised by the ruling as he has continued to fight with regulators for some time now. Commenting on the ruling Straub stated:
Straub was referring to the fact that the Commission ruled in a similar fashion as the State Division of Gaming Enforcement did on the matter some time ago.
The businessman does have plans to appeal the ruling but feels that he will be able to be operational in the meantime as the hotel rooms would be able to reopen on the 20th of February as previously scheduled.
Still Not Concerned with Licensing
Straub is simply not interested in having to apply for casino licensing. The property of the Revel is only 5% of the real estate holdings of the mogul and he feels that it is too cumbersome to spend time, money and energy on the application process for casino licensing. Under the deal with his partner Landino, Straub would simply be a landlord. Landino has yet to obtaining licensing as well. But if Straub does not win his appeal, then he will be the one required to apply.
Landino was on hand during the hearing and left the office of the Commission without making comment on the matter. According to Levinson, it is Straub that has caused the property to remain unopened.
The Revel Casino was a major undertaking when it was constructed and opened in 2012 having cost $2.4 billion to create. It was not long after opening that the venue ran into trouble financially as the revenues generated each month did not coincide with expectations. By 2014 the casino had closed after filing for bankruptcy a second time.
In April of 2015, Straub purchased the casino for $82 million far under the original price of construction. Since that time, Straub has announced partial re-openings only failing to deliver. Now, Straub feels that he is being treated unfairly. An attorney of Atlantic City representing Straub, Lloyd Levenson, spoke with the Commission stating that the Division of Gaming Enforcement was ‘too rigid’ in their analysis of requirements involved in casino licensing. In particularly since the area has suffered from hard times in the gaming industry as of late.
For now, Straub will have to continue the fight or apply for a casino license in order for the venue to open.