The majesty of the law

For years New Jersey casino regulators have had to endure legislative backchat that they’re overstepping their authority. This week, lawmakers learned that such regulatory authority doesn’t extend as far as they thought. Even in its most dire straits, the Tropicana Atlantic City wasn’t forced to close. Now legislators are discovering that it’s faintly preposterous to ask the New Jersey Casino Control Commission to compel a casino to stay open against ownerships’ will.

“The commission simply does not have the authority to direct a casino licensee to forestall a business decision to cease its gaming operations,” Chairman Matthew Levinson wrote to three solons who wanted the NJCCC to force the Showboat and Trump Plaza to remain open longer than planned. Levinson added that there is also no statutory authority to prevent removal of the gaming entitlement, as Caesars Entertainment did to the Claridge Hotel and Atlantic Club Hotel: “Deed restrictions are private, contractual covenants, and enforcement of them is a matter for the courts, not the commission.”

Caesars’ termination of the Showboat was premature, although the company remains adamant about the shutdown. Atlantic City Mayor Don Guardian says “strong interest” remains in purchasing the property. (No such luck for Trump Plaza, victim of too much deferred maintenance, it would seem.) At least Caesars sees some value in selling Showboat as a casino and would impose no deed restriction.

* Boston Mayor Martin Walsh‘s pouting and sulking has cost his city its surrounding-community status. So decrees the Massachusetts Gaming Commission, provoked by Walsh’s refusal to enter into arbitration with Wynn Resorts. They tried. “We sent them a letter last week reminding them of the consequences of electing not to participate in the surrounding community process we set up, we got no response to the letter,” explained Acting Commission Chairman James McHugh.

So it’s up to the MGC to determine and levy impact fees upon Wynn where appropriate. Given Walsh’s unresponsiveness, they’ll be operating in somewhat of a vacuum. But if Boston has second thoughts about abstaining, it can re-enter the process if it so chooses.

As usual with Walsh, it’s everybody else’s fault:

* If you want to read a sensible response to Sheldon Adelson‘s bogeyman rhetoric about Internet gambling, I recommend this.