Judge Orders Colony to Proceed With Casino SaleMonday, May 6, 2013
A New Jersey judge has ordered Santa Monica firm Colony Capital LLC to proceed with the sale of an Atlantic City hotel and casino to the operator of an online poker site.
Colony, Tom Barrack’s private real estate investment firm, said last week that it was cancelling the long-planned sale of the Atlantic Club to PokerStars, an online poker division of Isle of Man investment company Rational Group Ltd. PokerStars sued, saying the casino owners – led by Colony – violated a purchase agreement.
PokerStars agreed in December to purchase the casino for $15 million and has since put $11 million into the property by funding operating shortfalls of up to $750,000 per week, Reuters reported. The company wants to buy the casino in part to ease its entry into the online gaming market in the United States.
The judge ordered Colony from ending the sale agreement or offering the property to other buyers until after a May 17 hearing.