Luxor Capital Group, the New York hedge fund that owns Atlantic City’s Ocean Casino, is selling half of the Atlantic City property to the Ilitch family, owners of the Detroit Tigers baseball and Red Wings hockey teams, the Little Caesars pizza chain, and Detroit’s MotorCity Casino.
The Ilitch family has already applied to the New Jersey Gaming Commission for a licence to part own the casino.
The two company’s confirmed in a statement: “Subject to regulatory approvals and final closing conditions, the Ilitch organization would own, through an affiliate, up to 50 per cent of Ocean, with Luxor owning the rest. This joint endeavor will bring to Atlantic City the extensive experience that the Ilitch organization has in the gaming industry through MotorCity Casino Hotel, Detroit’s only locally owned and operated casino. MotorCity Casino Hotel offers luxury hotel accommodations and spa facilities, fine and casual dining, live entertainment, and world-class gaming. Additionally, the Ilitch companies represent leading brands in the food, sports and entertainment and real estate development industries and employ tens of thousands of people worldwide.”
Luxor Capital commented: “We are extremely excited about the proposed investment by the Ilitch organization, which, if approved, will give Ocean access to growth capital and provide a strategic partner to Luxor. We look forward to continuing to grow Ocean in partnership with the Ilitch organization for years to come.”
It added: “The Ilitch organisation recognises the success that the team at Ocean has achieved over the past two years and looks forward to working with the Ocean team and building on their accomplishments through continued investment in both the property and the customer experience.”
Ocean opened nine years ago as Revel, the the doomed $2.4bn resort that closed after two years of being open. It came in third place in terms of top earning casinos in Atlantic City.