ATLANTIC CITY
continues to grow the industry after its disappointing launch. Governor Chris Christie signed the Internet gaming law, with a 15 per cent gross revenues tax, in 2013. To maintain Atlantic City viability, only land- based operators may house and manage all online gaming servers. To maximize appeal to commuters and tourists,
anyone over 21 who is physically within the state’s borders may play. The newest site,
www.pokerstarsnj.com, in partnership with Resorts, opened in March 2016. It has helped propel first quarter online revenues to almost $45 million.
Ownership changes
Multiple Atlantic City casinos have new owners. Billionaire Carl Icahn already owns the Tropicana and acquired the Trump Taj Mahal after it emerged from bankruptcy in February 2016. He will combine their management teams. Buying Taj Mahal also eliminated original owner and Republican presidential candidate Donald Trump‘s remaining 10 per cent ownership stake. The Tropicana invested $50 million into its building last year. Cooperation with local unions and resolution of the upcoming northern New Jersey casino ballot question will determine if Icahn will invest $100 million into the Taj. His initial $15 investment will upgrade the infrastructure and install 250 new slot machines. Mohegan Sun’s acquisition of Resorts offers cross-
marketing potential between its Connecticut flagship and Pennsylvania properties. Mohegan Sun also operates its Landshark beach bar and Margaritaville indoor restaurant with singer Jimmy Buffett. Atlantic County’s Stockton University purchased the Showboat in 2014, hoping to create a city campus, but legal complications derailed the deal. In January, 2016, Philadelphia developer Bart Blatstein, CEO of Tower Investments, bought the site. He has
not announced his future plans. Revel is perhaps Atlantic City’s greatest casualty. The $2.4 billion, 47-story resort opened in April 2012 and closed in September 2014. Florida developer Glenn Straub later purchased Revel for $82 million. Straub plans to reopen Revel in June with a family-
friendly ropes course and a sandy beach entry lounge.
He will then offer 500 hotel rooms, limited casino space, restaurants and clubs.
New development Increased non-gaming amenities have prospered.
The latest New Jersey Division of Gaming Enforcement‘s (DGE) figures reveal growth from 20 per cent of 2004’s overall revenues to 34 per cent in 2014. Harrah’s recently opened a $125.8 million
Waterfront Convention Center. The property has already booked meetings and conventions through 2019. Resorts spent $5 million on its convention space; the company is also investing $20m on hotel room renovations. The Borgata will invest $50 million this year for
several projects, including a nightclub, dining outlets, swimming pool and 25,000 additional square feet for meetings/conventions. Blatstein first entered Atlantic City‘s market by debuting The Playground, a $50 million retail, entertainment and dining complex, in 2015. Built on the original 1903 Million Dollar Pier and failed Pier Shoppes at Caesars site, Blatstein has transformed the facility. “People visit Atlantic City because of fond memories or they want an easy, inexpensive beach and boardwalk getaway. Atlantic City’s storied history has been part of my life since my childhood,” says Blatstein.
The Playground
Philadelphia developer Bart Blatstein, CEO of Tower Investments
MAY 2016 31
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86