Luxor Capital Group is a hedge fund based in Manhattan — and has nothing to do with the Luxor Hotel & Casino in Las Vegas.
Current Ocean owner Bruce Deifik was supposed to keep a small piece of the place, but not anymore. Ocean will continue to operate as normal, according to a press release, and a trust will be set up until Luxor obtains state approval to take over — a process that could take three to four months to complete.
MORE: Ocean Resort Casino acquired by new owner after 6 months of operation
For some, however, Luxor's acquisition conjures up more questions than answers.
Joe Weinert, an analyst with the Spectrum Gaming Group, is among those wondering how it will all play out.
“Hedge funds are a big unknown in the casino industry, especially taking over a major property in a major market,” Weinert said. “Everybody’s looking to see exactly what is going to happen.”
Deifik paid $200 million to Florida developer Glenn Straub for the former Revel, which never reopened under Straub’s ownership. He had taken it over after a failed two-year run by the original ownership group, which opened the $2.4 billion facility in 2012.
Deifik opened Ocean last June, on the same day Hard Rock Hotel Casino reopened in former Trump Taj Mahal casino. The Ocean’s casino revenues have been at the bottom of the list of nine gaming facilities in Atlantic City.
Weinert hopes Luxor will make its intentions for Ocean known sooner rather than later.
“The best thing the new ownership group can do is come in after the sale is formally completed and assure the employees and stakeholders of Ocean and the stakeholders of Atlantic City that they are here to improve the property and help grow the Atlantic City marketplace,” he said.
The fund will invest $70 million into the property.