ToCasino.net Online Casino

ATLANTIC CITY — At least four bids are on the table for the failed $2.4 billion Revel casino-hotel in Atlantic City, according to a source close to the negotiations, with a bankruptcy court auction set to resume this morning in New York.

The only offer that has been made public in the secret talks has been a $90 million bid that came from Glenn Straub, a Florida developer who has not given a clear picture of his vision for the property.

However, one of those familiar with the closed-door auction say there are at least three other credible bids in addition to Straub — one from a publicly traded real estate investment trust described as “financially strong,” which has not indicated how it plans to use the property.

Another comes from a foreign-based group with an offshore track record, seeking to keep Revel going as a casino. The source, who asked not to be identified because of the sensitivity of the talks, would not disclose the names of bidders.

Straub, who has talked about converting Revel into a university, will collect a $3 million breakup fee for serving as the lead bidder if his offer is topped by someone else.

The former casino’s management has released no details of what has been going on behind the scenes, or whether they were any white knights riding onto the scene.

“Revel is not commenting on the bid process,” company spokeswoman Lisa Johnson said yesterday.

Revel, burdened by debt and drowning in red ink since opening a little more than two years ago, closed its doors on Sept. 2. Johnson would not describe the scene inside the immense hotel, but said there are essential staff on duty, including security.

Luxury casino-hotel or white elephant?

Just what the market value might be for a casino-hotel that cost $2.4 billion to build remains an unknown. The size and design of the mirror-like building—which stands at 57 stories and has 150,000-square-feet in gaming space—would make it a tough project to retrofit for uses other than a casino, experts say.

“No matter how inexpensive the price is, what are you going to do with it after your buy it?” asked Nicholas Amato, former executive director of the New Jersey Casino Reinvestment Development Authority, and later president of the Casino Association of New Jersey.

Amato, who now heads the Casino and Gaming Law Practice Group for Genova Burns Giantomasi Webster of Newark, said whoever successfully bids for Revel will need a long term plan and a lot of money behind them.

“You can buy a pair of Gucci loafers for $10, but if they are a size 10 and you are a size six, what are you going to do with them?” he asked. “Revel is well built, but what can it be used for? I don’t know the answer.”

Indeed, in a place where four casinos closed in nine months, there are few expectations that Revel, which has been through bankruptcy before, could live again as a gambling mecca. Many expect it to sell for a fraction of what it cost to build.

Revel was once seen as the key to Atlantic City’s turnaround, with the Christie administration pledging $261 million in tax credits to help the resort. But the project ran into trouble even before it opened, when Morgan Stanley, the project's major backer, pulled out in April 2010, deciding it was better to take a nearly $1 billion hit on the project than to more forward.

A spokesman for the governor did not return calls for comment.

Amato said Revel built a casino that gamblers did not want. Outfitted with high-end restaurants, a luxury spa, floor-to-ceiling windows and a no smoking policy, it failed to lure customers.

The closed-door auction for Revel, which was suspended by lawyers on Wednesday in advance of Rosh Hashanah, is scheduled to resume at 10 a.m. today at the New York offices of Revel’s bankruptcy lawyers.

Rutgers University economist Joseph Seneca said “there is obviously going to be intense pressure to do a deal,” not only by Revel, but by the administration. And he said that pressure is likely even stronger now than it was a month ago, when the casino closed its doors.

“The loss of employment alone was a body blow to the state that is already having sluggish employment recovery,” he said.

The closing of Revel left more than 3,100 employees looking for work.

At the same time, he said the ultimate use of Revel will be determined by the price its potential buyers pay—a price that will be far below its initial pricetag.

“I’ve seen seen some far-out ideas. But where is the revenue going to come from?” Seneca asked. “Reopening as a casino or anything else will be driven by what they pay, and their perception as to how much money they need to invest for them to earn a return.”

Ted Sherman may be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Follow him on Twitter @TedShermanSL. Find NJ.com on Facebook.