The casino, which measures 99,000 square feet and has 942 hotel rooms, is one of the Shore's smallest gambling halls and has been struggling mightily amid existing and new competition.
Founded in 1990 by Morris Bailey and Joseph L. Jerome, JEMB Realty is a leading private real estate development and management company in North America with about $4 billion in assets, including resorts and hotels, residential, retail, office, self-storage, power and industrial properties.
"We think this is the right time to invest in Atlantic City," Bailey said in a statement today. "Taking advantage of its superb location and unique infrastructure, we believe Atlantic City can once again be the premier destination location on the East Coast."
Bailey added that "JEMB is prepared to make the necessary investment to build on Resorts' untapped potential to create a truly world-class entertainment environment."
That comes as welcome news to gaming analysts who predict that Atlantic City's smaller gambling halls will face an increasing fight to survive and need much new capital infusion.
Resorts, Atlantic City's oldest casino, opened May 26, 1978. With 2,300 slot machines and 85 table games, it reported a decrease of 19.3 percent in gambling revenue for July compared with a year ago, the highest among Atlantic City 11 casinos.
"I think that Resorts will be reinvigorated and become profitable under Dennis Gomes," said Joseph Weinert of Spectrum Gaming Group L.L.C. in Linwood, N.J. "The critical question for Atlantic City is whether that profit is the result of cannibalization or market expansion. Suffice to say, the latter would be much healthier for the city.
"Right now, Atlantic City favors those properties that have regularly invested major capital into high-quality, younger-appealing, predominantly non-gaming amenities," he said. "The smaller properties have had difficulty keeping up with the investments of the largest players, leading to a vicious circle – and leading to the point where they are today, which is financially struggling."
JEMB and Dennis Gomes will be equity partners in the purchase of Resorts and the property will be operated by Gomes Gaming Inc. The purchase agreement, subject to approval by the New Jersey Casino Control Commission, is expected to close at year's end.
"We are thrilled to be working with JEMB on this exciting project," Gomes said. "Resorts is fundamentally an excellent property, and we are looking forward to investing to reestablish it as an exciting destination location."
Contact staff writer Suzette Parmley at 215-854-2594 or sparmley@phillynews.com.
