Atlantic City’s soon-to-close Showboat casino may have a buyer that plans to redevelop the property as an entertainment complex.
But a local state legislator is worried that Caesars Entertainment will nix the deal by requiring that the property never be operated as a casino again.
Vineland-based Atlantic Properties Group told The Press of Atlantic City that it is “very interested in acquiring the Showboat property” and are “thankful to have entered into discussions with Caesars Entertainment Group” about a purchase. The group “intends to provide an entertainment-based property with a significantly reduced casino component.”
The group said the project would support 1,200 to 1,600 permanent jobs, the statement said. The possible project is described as an entertainment-dining complex.
Assemblyman Chris Brown, R-Atlantic County, however, says Caesars habit of selling off former casino sites with deed restrictions saying the properties can’t operate as a casino could sour a chance to save the casino, which is scheduled to close August 31.
Caesars has not said that it would requires a deed restriction on the property and officials for the casino have said in the past that the company is open to selling Showboat as a casino.
However, Caesars reason for closing Showboat—which was still profitable—was to reduce casino capacity in the city and protect its three other casino properties in the resort. Plus, Caesars has already sold the property of two former Atlantic City casinos—The Atlantic Club and the former Claridge casino hotel—with deed restrictions saying the properties could not operate as casinos.
Brown has decided not to wait and see what Caesars does in this case and has asked state regulators to intervene. Brown said he is also worried that Caesars might simply refuse to sell to any group proposing a casino on the property.
Brown sent a letter to the state Division of Gaming Enforcement Director David Rebuck saying Caesars “should not be allowed to restrict gaming by rejecting all bona fide bids that include a gaming aspect.”
Brown also called for hearings on Caesars efforts to sell the property.
Brown and several other local legislators initially sought help from the state casino Control Commission to block the deed restrictions, but CCC officials said they did not have the power to stop them.
But Brown feels there may be another way.
Brown, a lawyer, says he feels the restrictions can be challenged in court if the state shows the restrictions hurt the public interest. Caesars deed restrictions reduce the amount of casino-zoned land in the city, he said.
Brown asks the DGE to work with the state attorney general to remove the restrictions on the Claridge and former Atlantic Club property.
