Business

Brookfield abandons bet on Atlantic City's Revel Casino

Brookfield Asset Management has decided not to gamble on the former Revel Casino Hotel in Atlantic City, N.J.

Toronto firm withdraws $110M offer for bankrupt, upscale resort

The Revel Casino Hotel, right, is seen next to the already closed Showboat Casino Hotel in Atlantic City, N.J. Brookfield has decided not to purchase the bankrupt resort. (Mel Evans/The Associated Press)

Brookfield Asset Management has decided not to gamble on the former Revel Casino Hotel in Atlantic City, N.J.

The Toronto-based company announced Wednesday that it has terminated its acquisition of the hotel and casino from a bankruptcy court.

The company planned to buy the defunct casino, built at a cost of $2.4 billion US, for $110 million.

It had planned to revive the resort, shut since June, as Atlantic City makes attempts to reboot its attractiveness as a tourist destination.

A Brookfield spokesman told an Atlantic City newspaper that the decision to withdraw the offer stems from a disagreement with bondholders controlling debt related to Revel's power plant.

Atlantic City is in decline as Americans abandon the gambling habit. About a third of its casinos have closed, including Trump Plaza. 

With files from the Associated Press