Developer Glenn Straub defended his untenable position that he doesn’t need a casino license, despite owning the casino building last week. And later, a judge ruled that his effort to buy the Showboat wasn’t enough, upholding the cancellation of his purchase and his effort to take over the property.
Straub likened dealing with New Jersey casino regulators to rape in a recent interview with the Associated Press.
Straub is trying to re-open the former Revel casino in Atlantic City—which he has rebranded TEN—but has been delayed by numerous fights with state and city regulators.
“I’d be broke,” Straub told the news service about his constant opposition to state decisions. “They’re trying to make me do what my predecessors did. That’s why they’re bankrupt and out of business. They don’t know how to not rape you. It’s like when you come to New Jersey, you have to take all your clothes off and burn all your money.”
Straub has a number of fights with the state underway including whether he needs a full casino license for the property. Straub says he simply plans to lease the casino space to another operator and should not need a license. The state’s Casino Control Commission has ruled he does.
The AP pointed out that Resorts Casino Hotel owner Morris Bailey had to obtain a casino license, even though he hired an outside company to run his casino.
Straub said he plans to lease part of the site to Connecticut developer Robert Landino, who will operate the casino and hotel as CEO and is applying for a license.
According to the AP, Landino’s company, Centerplan Construction, is suing the city of Hartford, Connecticut, which fired it as a builder on a much-delayed minor-league baseball stadium there.
Hartford Mayor Luke Bronin said his administration contacted federal investigators about Centerplan. He said concerns were shared with the FBI about Centerplan’s handling of the project and alleged failure to pay subcontractors for their work. The Hartford Courant reported that the FBI has started an investigation.
Landino told the AP that his company has done nothing wrong and has not been contacted by the FBI. Straub said he is not worried about the situation.
Straub’s lease with Landino lays out a potential exit plan for Straub should New Jersey regulators reject him for a casino license, the AP said. Straub would retain the right to show the property to potential buyers, and gives Landino the right to buy the casino should New Jersey officials reject Straub.
Straub is currently suing the state’s Casino Control Commission over its ruling that he needs a full casino license.
He was hit with more bad news as well. An appeals court rejected his bid to reverse a lower court ruling that cancelled his contract to buy the former Showboat casino from Stockton University when the college got caught between two conflicting deed restrictions on the property. Stockton sold the former Caesars Entertainment property to Bart Blatstein, who has bought up several other properties in Atlantic City, including the former Pier at Caesars that he transformed into the Playground.
Straub bought the property to tap into its utilities when the owners of the Revel power plant cut off services to Revel. But when Straub ended up buying the power plant, the purchase of Showboat was less essential to him. But he still is considering challenging the appeals court ruling to the state Supreme Court.
