The casino license issue is only the latest squabble in Glenn Straub’s long quest to re-open the Revel Building.
Glenn Straub, the owner of the Revel Building in Atlantic City, said Friday he is not going to reopen the Revel Casino. Straub argued that he should not have to receive a casino license, which state officials say is the customary procedure.
Glenn Straub told the Associated Press that he is acting as landlord to the property, but an outside management company is going to operating the Revel Casino. For that reason, Straub sees no reason why he should have to apply for a gaming license. The application process is costly and requires a lot of time, while it also is an invasive process.
DGE Told Straub He Needs a License on Friday
The New Jersey Division of Gaming Enforcement told him on Friday that he needs a casino license. The directive seems to have outraged Glenn Straub, a Florida developer who bought the Revel Building for $82 million, a fraction of the cost to build the skyscraper ($2.4 billion).
Mr. Straub has never operated a business in Atlantic City, so he has several times seemed to flinch at practices in New Jersey. On Friday, he told the Associated Press, “They have totally abused their discretion. We’re just a landlord — a vendor, really. Like someone who provides produce. I’m not going to run the casino; why do I need a casino license?”
Appeal to the Casino Control Commission
Revel’s owner said he is not going to reopen the hotel anytime soon, as he had announced he would do. Straub said he would open 500 to 900 rooms of the hotel section on or around June 15, but that is not the case. The impasse over the casino license leaves it impossible for Straub to get a liquor license. Instead, he is going to appeal the DGE’s ruling to the Casino Control Commission.
David Rebuck on Straub’s Licensing
David Rebuck, the director of the New Jersey Division of Gaming Enforcement, said some licensing is necessary, though Rebuck left the door open to a less stringent form of licensing that the city’s other 8 license holders have.
Rebuck said, “We have made a determination that he does need to be licensed. The thought is it might be a lesser level of licensing because of his business plan, but the Division cannot make a final determination until his license application is complete.”
Possible “Casino Service Industry” License
The lesser level of licensing discussed is likely to be a casino service industry license. The management company contracted to operate the casino’s business would be required to have a full license.
Glenn Straub had planned to open the 900-room hotel on Friday, or at least a portion of the hotel space. He also planned to reopen some of the non-gaming amenities.
Revel Casino’s History
The Revel Casino opened in April 2012. After two bankruptcies, the casino closed is doors in early September 2014, after only 29 months of operation. The bankruptcy auction and reopening of the Revel Building has been an act of endurance for Glenn Straub.
Glenn Straub’s Role
He outlasted several rival developers in the bidding process, mainly because the rivals balked at $3 million per month energy costs from AC Energy Partners. Once Straub won the bidding, he engaged in a months-long legal battle with AC Energy Partners, which led to him buying out the energy coop.
Now, it appears Glenn Straub is going to have to wait a little longer. Given the fact the DGE is the gaming regulator in the state, it is unlikely Straub will be able to outlast the regulator in this standoff.
