Category Archives: Atlantic City

Glenn Straub brings New Jersey to court over PILOT casino program

Florida-based developer Glenn Straub is suing the state of New Jersey for what he calls an unfair imposition of property tax on Atlantic City’s shuttered Revel Casino Hotel.

Glenn Straub brings New Jersey to court over PILOT casino programThe Press of Atlantic City reported that Straub questioned New Jersey’s PILOT program before the Atlantic County Superior Court on October 14, complaining that the state sent him a tax bill $3 million higher than it should be.

“It’s crazy,” Straub said of the PILOT, according to the news report. “It’s not a casino, because the state says we need a license. They are penalizing us millions and millions of dollars.”

Under the New Jersey’s casino payment in lieu of taxes (PILOT) program, casinos will have to shell out $120 million this year instead of property taxes. The program was intended to bring balance to the wobbly New Jersey’s tax collection base amid left and right casino tax appeals.

The city incurred budget deficits as a result of the costly litigation and eventual state takeover.

But Straub, in his petition, argued that it is unfair for him to pay a tax bill that is $3 million more than it should be for Revel, especially since the property was derelict and no longer operating by the time the program was implemented.

Straub purchased Revel at a bankruptcy auction two years ago for $82 million. The property has remained idle since closing in September 2014.

Atlantic City, according to Straub, was asking him to pay $8.3 million in taxes despite not having gaming at the property. Straub contends that he should be taken off the PILOT program since he technically didn’t own the property when it was still a functioning casino.

“The PILOT Act penalizes it by requiring it to pay based on the fact that at one time the property was licensed to operate as a casino, but does not generate the level of revenue as casino properties because no casino operates there and, in fact, never did operate there in the entire ownership period of the plaintiff,” according to the complaint.


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Buyer reportedly found for mothballed Atlantic Club casino

atlantic-club-casino-hotel-soldAtlantic City’s rebirth continues with word that someone has expressed interest in acquiring the mothballed Atlantic Club Casino Hotel.

On Monday, the Press of Atlantic City reported that the Atlantic Club’s current owner, Florida-based TJM Properties, claimed to be preparing to announce the sale of the venue to an undisclosed buyer. TJM director of acquisitions Dale Schooley said a contract has been signed and that TJM was just waiting for the “hard money” to roll in later this week before announcing the buyer’s identity.

TJM acquired the Atlantic Club in June 2014, five months after the property was closed by its previous owner, the then-financially struggling casino operator Caesars Entertainment. The closure marked the first of five Atlantic City casinos to shut their doors that year in what marked the seaside gaming market’s nadir.

Various tire-kickers have mulled acquiring the Atlantic Club over the years, including rumors this March that the casino had been sold to R&R Development Group, who planned to convert the venue into a water park. However, those plans, like all the others, came to naught.

On Friday, AC Mayor Don Guardian told the paper that he’d spoken with two developers interested in the Atlantic Club property, although like Schooley, Guardian played coy as to their identities.

Meanwhile, the Atlantic Club has continued to erode, as amply demonstrated by the partial collapse late last month of the property’s covered entrance. No humans were hurt by the falling ceiling tiles, although the families of a number of rats have requested that mourners make a donation to the local cheesecake factory in lieu of flowers.

News of the Atlantic Club’s imminent sale came just one week after reports that another mothballed AC casino, Revel aka TEN, had found new ownership, although these reports have been denied by Revel/Ten’s owner, Florida developer Glenn Straub.


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Strip club derails Trump Taj Mahal property revival

A strip club that once operated inside the now-shuttered Trump Taj Mahal casino in Atlantic City is standing up for its right to offer adult entertainment at the facility when it reopens under new owners.

Philadelphia Magazine reported that Boardwalk 1000, LLC has brought SCORES Atlantic City to court after the strip club owners pressed the right to reopen their business should the shuttered hotel come back to life as the Hard Rock Atlantic City.

The Taj Mahal officially closed last October, putting nearly 3,000 of its staff out of work. Donald Trump’s buddy Carl Icahn and the union of casino workers failed to agree on a new contract that would cover health insurance and pension benefits.

Strip club derails Trump Taj Mahal property revivalIn March, Hard Rock International struck a deal to acquire the Taj and promptly announced plans to spend $375 million remodeling the joint as the new music-themed Hard Rock Atlantic City, which is set to re-open in summer 2018.

But Boardwalk 1000 claimed that SCORES has been “impeding and compromising” the property owners’ plan to revive the beleaguered property due to the strip club’s insistence that the venue can’t open without them.

SCORES has been a fixture in the controversial property since it leased nearly 300,000 square feet for the pleasure of affluent visitors looking for worldly fun while drinking $25,000-a-bottle champagne.

In its petition filed on Monday, Boardwalk insisted that SCORES has no legal say on how they will run the casino since SCORES’ lease expired in June 2016.

Boardwalk’s counsels maintains that SCORES would jeopardize the Hard Rock’s ability to open on time in summer 2018. To allow SCORES back onto their property would also definitely disparage the Hard Rock brand, according to the lawyers.

They pleaded for the court to rule that SCORES “has no further right to occupy or utilize the space formerly leased by it.” They also appealed to SCORES to give up on their ambition to reopen the strip club in the property.


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New Jersey introduces bill allowing New Jersey casinos to operate during state shutdown

New Jersey lawmakers are no longer taking any chances that Atlantic City casinos might be forced to close in the event of another state government shutdown due to a budget impasse.

New Jersey introduces Bill allowing New Jersey casinos to operate during state shutdownAtlantic City casinos were almost forced to shut down this week after the state legislature and New Jersey Gov. Chris Christie failed to pass a budget on time.

The casino shutdown was averted after both branches of the state government were able to reconcile their differences before the seven-day leeway given to casinos ended.

To prevent such economic inconvenience, The Press of Atlantic City reported that state Senate President Steve Sweeney and Senators Jim Whelan and Jeff Van Drew introduced a bill seeking to amend the law that allows New Jersey’s casinos to keep their doors open for seven days after state government shuts down.

Whelan, who sponsored the original seven-day law, said the new bill will now let the casinos stay open indefinitely.

“The casinos continue to be the driving force for the economy in the city and the entire region,” said Whelan, D-Atlantic. “Atlantic City is turning around, and to allow the casinos to close now or at any time in the future would be destructive to the lives of the casino workers and their families and would create an economic riptide with negative consequences for the entire city and region.”

Several lawmakers, however, raised their eyebrows over the necessity of the bill, especially since “essential” employees are not affected by the state shutdown.

Christie, according to the report, signed an executive order in 2010 that deemed employees at the Casino Control Commission “essential.”

Still, the governor said Sunday that, through the first reading of the 2008 law, he believed the casinos and racetracks around the state were scheduled to close.

All items must go in Taj Mahal Casino Liquidation Sale

Elsewhere in Atlantic City, National Content Liquidators has started the auction of all items inside the shuttered Trump Taj Mahal Casino Resort, which was once owned by President Donald Trump.

Fortune reported that the chandeliers, sofas, coffee tables, televisions, beds, and even a grand piano were among the offerings up for auction, which started on Thursday. The auction will continue until all the items are gone, according to the government liquidators.

Trump opened up the $1 billion casino in 1990 before it filed for bankruptcy the following year.

Billionaire Carl Icahn, who purchased the casino, shut the business for good after a labor dispute. The property was then sold to Hard Rock International in March for about $50 million.


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Atlantic Town casinos start 2016 on the mistaken foot

February twelve, 2016


atlantic-city-casino-revenue-fallAtlantic Town casinos started off the year on a downer be aware, as even the market-top Borgata house acquired considerably less earnings than 1 year in the past.

Figures launched on Friday by the New Jersey Division of Gaming Enforcement (DGE) confirmed the state’s 8 brick-and-mortar casinos earning a blended $175.5m in gaming earnings, five.6% considerably less than the similar month past year. The drop falls to three.8% if you depend the history $fourteen.6m acquired by the state’s controlled on the net gambling market.

January’s figures provide an end to the asterisks that had to be used to the regular figures following the closure of 4 of AC’s dozen casinos in 2014. For the very first time in a long time, true apples to apples comparisons are feasible, for which all of us mathematically challenged gambling scribes are profoundly grateful.

Leaving apart the on the net figures, January’s success were evenly break up among winners and losers. The Borgata suffered a price setback, as gaming earnings fell 8.8% to $52.1m, though it helps to notice that January 2015’s figures were up extra than eighteen% year-on-year.

Even with the drop, the Borgata’s figures were nearly two times that of its nearest competitor, Harrah’s, which was down nine.6% to $27.8m. The Tropicana had a potent month, mounting five.8% to $21.1m, allowing it to unseat perennial 3rd-place finisher Caesars, which was down 13.five% to $20m.

Most of the base 50 % of the chart was in optimistic territory, led by the Golden Nugget’s $sixteen.7m (+five%). Bally’s slipped twelve.three% to $13.9m, even though the struggling Trump Taj Mahal acquired 2.three% to $twelve.4m and Resorts rose to $eleven.4m.

Meanwhile, New Jersey legislators are planning to mount a fresh new press to go laws aimed at keeping AC out of the individual bankruptcy courts. State Sen. Jim Whelan is backing a evaluate that would call for casinos to make preset yearly payments in lieu of house taxes, a change that would get rid of the frequently painful changes at the moment plaguing the city’s partnership with the Borgata.

But the legislature is also weighing approval of a five-year prepare aimed at supporting AC acquire manage over its funds, a proposal supported by Gov. Chris Christie, given that AC is established to run out of income as before long as April. Whelan stated the laws was meant to “stop the bleeding” but it remained unclear if there was a treatment for AC’s “disease.”

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