Despite criticism over it use of deed restrictions, Caesars Entertainment again wants to block its former casino Showboat from re-opening as a casino for the next 10 years.
The company is negotiating a deal to sell the closed property to the Richard Stockton College of New Jersey, which has said it is not interested in operating a casino at the site. But the company’s use of deed restrictions at other sites—notably the closed Atlantic Club casino and the former Claridge casino—has brought criticism that the company is trying to stifle competition in the resort.
According to the Press of Atlantic City, which reviewed real estate documents in the sale, the restriction would bar casino gambling, including internet wagering, at the Showboat property for the next decade.
However, the deed restriction would be lifted if a buyer paid a price that reflects Showboat’s market value as a casino, Caesars Entertainment spokeswoman Jan Jones Blackhurst told the paper.
“If somebody wants to come in and pay a casino price for the land, they can make it a casino,” she said.
The college wants the property for an Atlantic City campus and has said it is not interested in a casino on the site. A proposed purchase price has not been disclosed.
Caesars and the college have reached a tentative deal, which Jones Blackhurst said everyone is “pretty happy with.”
The deed restrictions, however, remain a hot button issue.
State Assemblyman Chris Brown and other lawmakers have strongly criticized Caesars for the no-casino restrictions. He and fellow Assemblyman Vince Mazzeo have introduced legislation that would prohibit casino companies from using deed restrictions to block competitors from entering Atlantic City.
“Right now, there may not be a high demand for people who want to own a casino. However, if the Claridge realized that they needed to add some gaming revenue in order to save the hotel and protect jobs, they should be allowed to do that,” Brown told the Press. “If the person who owns the Atlantic Club is looking to sell it for the highest and best use, they should be able to do that.”
