The Gaming Industry Daily Report for 2/15/2013
Alan R. Woinski, Editor
Subscription Info - www.gvcu.com/gvcusubscriptionorder.htm - www.gamingusacorp.
The big news in AC is that Trump Plaza has been sold. The newspapers touted that the $20 million Meruelo Group from California is paying for the Plaza is the lowest price paid ever for an Atlantic City casino. Some would argue they are overpaying although considering Pinnacle Entertainment has an agreement to sell their land in AC for 50% more than that, one would also say flattening Trump Plaza would have yielded a higher price from Trump Entertainment and would have been much better for the whole market. As for who Meruelo Group is, they are real estate dudes from California who entered the gaming market with the purchase of Grand Sierra Resort in Reno. Meruelo said they plan to close the transaction before the end of May but they do need approval from one note holder who happens to be Carl Icahn. As for Trump Entertainment, they continue to put up a brave face even though they seem to be netting more with the sale of their furniture than they do their casinos. CEO Robert Griffin said they would even sell the Taj, if the offer was right. He played it up, telling potential buyers to blow him away with an offer and he would take it to the board. Perhaps he should have thought about that before losing 30% of the Taj’s revenue following blowing hundreds of millions on a new tower. We always love a guy who stands in quicksand and acts like he is on solid ground. Griffin said the sale of Trump Plaza is good for Atlantic City. Only if Meruelo turns it into a non-gaming condo development.
Alan R. Woinski, Editor
Subscription Info - www.gvcu.com/gvcusubscriptionorder.htm - www.gamingusacorp.
The big news in AC is that Trump Plaza has been sold. The newspapers touted that the $20 million Meruelo Group from California is paying for the Plaza is the lowest price paid ever for an Atlantic City casino. Some would argue they are overpaying although considering Pinnacle Entertainment has an agreement to sell their land in AC for 50% more than that, one would also say flattening Trump Plaza would have yielded a higher price from Trump Entertainment and would have been much better for the whole market. As for who Meruelo Group is, they are real estate dudes from California who entered the gaming market with the purchase of Grand Sierra Resort in Reno. Meruelo said they plan to close the transaction before the end of May but they do need approval from one note holder who happens to be Carl Icahn. As for Trump Entertainment, they continue to put up a brave face even though they seem to be netting more with the sale of their furniture than they do their casinos. CEO Robert Griffin said they would even sell the Taj, if the offer was right. He played it up, telling potential buyers to blow him away with an offer and he would take it to the board. Perhaps he should have thought about that before losing 30% of the Taj’s revenue following blowing hundreds of millions on a new tower. We always love a guy who stands in quicksand and acts like he is on solid ground. Griffin said the sale of Trump Plaza is good for Atlantic City. Only if Meruelo turns it into a non-gaming condo development.
The Spaniard
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