Hedge Fund Approved To Own Atlantic City Casino

Feb 14 2014 | 9:22am ET

New Jersey's gambling regulator has signed off on Chatham Asset Management as the largest shareholder of a troubled Atlantic City casino.

Chatham emerged with a 22% stake when the Revel exited bankruptcy last year. The casino declared bankruptcy in 2013, just 10 months after opening.

Chatham has since boosted its stake to 28%, and won final approval as a casino owner from the New Jersey Casino Control Commission this week. It had won temporary permission in May.

It is not clear how long Chatham will hold the Revel stake. Evan Ratner, a principal at the firm, said at the commission hearing that the hedge fund is pursuing "strategic options," meaning that the Revel could be sold or file for bankruptcy once again.

Ratner left the hearing before its conclusion.

Revel opened in April 2012 and is Atlantic City's newest gambling house—and one of its largest, with nearly 1,400 hotel rooms in New Jersey's second-tallest building. But it has failed to attract patrons, and remains one of Atlantic City's lowest-ranked casinos in terms of gambling revenue.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...