Over the first nine months of 2012, the Atlantic Club Casino Hotel in Atlantic City, New Jersey had a gross operating loss of $13.6 million. In addition to these losses, the Atlantic Club’s gambling revenue was down 11 percent in 2012 and it was ranked 10 of 12 in total slot machine revenue for the casinos in Atlantic City. All in all, the casino was struggling.
Recently an acquisition deal has been announced that is expected to turn the casino around. In this complex business transaction, Rational Group will purchase the Atlantic Club for an undisclosed amount. Rational Group is the parent company to the successful online gambling sites PokerStars and Full Tilt Poker. The deal is expected to save the Atlantic Club, help the local economy and save around 2,000 jobs.
However, the deal is subject to approval by the New Jersey Casino Control Commission, which can take up to 120 days to approve or deny the sale. This approval may not be easy for Rational Group. Rational Group has been scrutinized in the past and is paying over $500 million to the U.S. government over accusations of money laundering. Despite this, many have argued that it is in New Jersey’s best interest to keep as many casinos open as possible.
Regulatory approval is just one hurdle for businesses looking to acquire another company. Buying a company can take careful negotiation and skillful execution in order to be successful. Even the smallest details can make or break a deal. With the right experienced help, mergers and acquisitions can proceed smoothly and quickly.
Source: The Press of Atlantic City, “Online gambling giant moves to purchase Atlantic Club casino in Atlantic City,” Donald Wittkowski, Jan. 16, 2013