Investor Glenn Straub challenged the termination of the Revel sale that we reported last week. The February 9, 2015 deadline passed before the deal closed. Straub had concerns about tenants with valid leases on the property and the utility plant that powers Revel. A judge ruled that Revel could void the deal and keep the $10 million deposit.
This makes the second dead Revel deal. Brookfield Asset Management backed out in late 2013 after being unable to secure a deal with the neighboring power plant during the bankruptcy proceedings. There are no other known bitters for the failed casino resort.
The Riviera Las Vegas rumors turned out to be true. The Las Vegas Convention and Visitors Authority confirmed that it has offered $182.5 million to acquire the 26-acre Riviera site. The LVCVA’s board of directors approved the deal Friday.
The 60-year old hotel will be demolished to make room for a massive expansion of the Las Vegas Convention Center. This will include a transportation hub and 750,000 square feet of new convention space. Riviera is expected to cease operations on May 4. An implosion would be set for the middle of the summer.
MGM Resorts Chairman Jim Murren stated that his company was very optimistic about the Las Vegas Strip during an earnings call this week. One example he used was a $300,000 dinner at a company restaurant. It turns out that Vice Media CEO Shane Smith was the big spender after winning $100,000 at the Bellagio blackjack tables, as reported by Bloomberg Business. He then took a crowd of 25 to Prime Steakhouse at Bellagio and ordered bottles of $15,000 wine to share with his guests, according to the Las Vegas Review-Journal.
In online gaming news, Caesars Entertainment decided that its former enemy PokerStars was now its friend. Caesars Entertainment stated that it will no longer fight PokerStars in any market. Its opposition to “bad actor” clauses that would automatically exclude PokerStars is now a thing of the past. It is thought that this was done to join forces to combat Sheldon Adelson’s attempt to ban online gambling in the U.S. through Congressional action.
A boxing match between Floyd Mayweather and Manny Pacquiao is now scheduled. It will be May 2 at the MGM Grand’s arena in Las Vegas. This will be one of the biggest boxing match ups in the past decade. There have been rumors of this fight since the pair ran into each other at a Miami Heat game in January. The match is set to earn the boxers a combined $150 million. It is expected to shatter pay per view revenue records.