Press of Atlantic City – The parent company of Golden Nugget Atlantic City may possibly sell the casino or its Internet gambling rights after struggling with some “less than stellar results” in a slumping market.
Despite a $150 million renovation last year that transformed a formerly drab property into a glitzier casino, Golden Nugget has continued to lose money under the ownership of Houston-based Landry’s Inc.
Landry’s, the restaurant, entertainment and casino conglomerate controlled by Texas billionaire Tilman Fertitta, says it has been approached by the investment bank Houlihan Lokey to consider selling Golden Nugget or its Internet gambling rights “due to some interest from outside parties.”
“In light of our $200 million investment in this gaming asset and less than stellar results in the Atlantic City market, Landry’s indicated to Houlihan Lokey that it would listen to any proposal,” Tom Pohlman, Golden Nugget’s executive vice president and general manager, said in a statement Friday. “However, absolutely no decision has been made to sell the property or Internet gaming rights.”
Landry’s $200 million investment mainly includes the $150 million renovation project, plus the $38 million that Fertitta spent in 2011 to buy the former Trump Marina Hotel Casino. Using Fertitta’s money, Landry’s gave Trump Marina an extensive facelift last year to create the Golden Nugget.
“Unlike the majority of the Atlantic City casinos, Landry’s has no outstanding debt on the casino and remains committed to the Atlantic City marketplace and Internet gaming,” Pohlman said.
