Casino developers with eyes for Atlantic City just got their biggest break in years—or at least since the demise of Trump Taj Mahal. Assuming the Eldorado Resorts takeover of Caesars Entertainment goes through (and there’s no reason to believe otherwise), all Caesars-imposed deed restrictions have to be lifted. As reader Mike Zidik puts it, “Hello Showboat Casino!” Not only does this give Bart Blatstein a clear runway, the Atlantic Club and venerable Claridge Hotel are also back in play. In light of “serious concerns” expressed by the Division of Gaming Enforcement (which opposed the merger), pinchpenny CEO Tom Reeg will have to commit $400 million in capex improvements to Harrah’s Resort, Caesars Atlantic City and Tropicana Atlantic City. These will be done over the next three years and Reeg has already put the money in escrow. He’ll have to spend another $125 million if the Bally’s sale to Twin River Holdings doesn’t go through promptly and, even if it does, reinvest 5% of annual gross gaming revenue in maintenance. Don’t forget he’s also committed a half-billion to property upgrades in Louisiana. (And he thought he was going to save $500 million.)
An argument can be made that the NJ CCC has a long history of strict regulatory over-reach. I frequently disagree with their licensing decisions but in this case, I feel they really did their job. Nicely done NJ!