Hedge fund masters of the universe Marc Lasry and Carl Ichan bet on a come back year for Atlantic City casinos this year and lost.
One culprit was Hurricane Sandy. The storm did a real number on the gambling business, with November profits down more than 27%.
But things weren’t looking too bright even before then: with profits down 4.8% through September.
Overall, the gambling industry made $3.05 billion in 2012, 8% less than the previous year.
Lasry’s Avenue Capital is a big investor in Entertainment, which owns two casinos in the area, the Trump Taj Mahal and Trump Plaza, while Ichan owns Tropicana Casino and Resorts.
From the Post:
“Lasry’s Trump Taj Mahal saw casino winnings fall 15 per cent last year, while Trump Plaza was down 25 per cent, according to yesterday’s report. Icahn’s Tropicana fell 9.8 per cent,” the New York Post reported.
Lasry and Ichan aren’t the only hedge fund managers to lose money in Atlantic City casinos though.
“Meanwhile, a handful of hedge funds, including Canyon Capital, have plowed money into Revel — the first new Atlantic City casino in 10 years — only to be disappointed since the $2.4 billion resort opened its doors in April. The report didn’t include an annual figure for Revel.”