Forced to gamble?; SugarHouse goes big

Trump_Plaza_lrNew Jersey‘s Casino Control Commission has been accused of overzealousness in the past (think MGM Resorts International and Pansy Ho). But now some overzealotry is what local politicians want. In a bizarre and probably unconstitutional move, they want the NJCCC to force, yes force, the Showboat and Trump Plaza to stay open an additional four months. State Sen. James Whelan told The Press of Atlantic City “the longer the better, because first of all, it would keep people working, and secondly, it would maximize the possibility of someone [interested in buying the property] having enough time to do their due diligence.”

S&G is all for keeping casino employees at their jobs, especially at the Showboat, whose operating profit was — according to Caesars Entertainment — overwhelmed by debt servicing. (Thank you, Gary Loveman.) However, government dictating that a business must stay in operation smacks of overreach … shades of the “boutique casino” law, which enshrined minimum investment levels in statute. NJCCC described the circumstances of the Whelan request “novel” and “unprecedented,” which is certainly true.

Showboat_Atlantic_CityThe legislators also complained that giving two months’ notice “to many 20-plus-year employees is wrong and unrealistic.” Perhaps, but it’s standard practice in these scenarios and complies with federal law. “It would be a nightmare for Atlantic City to have a string of vacant properties along the Boardwalk like Atlantic Club, a situation orchestrated by joint venture between Caesars and Tropicana [Entertainment],” Whelan and colleagues wrote, accusing Trump Entertainment Resorts and Caesars of wanting to consolidate employees, customers and business.

The NJCCC’s Matthew Levinson replied, “I certainly share the very serious concerns they raised about the welfare of workers and all of the businesses that will suffer if casino properties close their doors. While our authority is broad in some respects, and our ability to direct business decisions of the casinos is limited under the Casino Control Act, the current circumstances are unprecedented and present novel issues which we have been and will continue to review.”

Assemblyman Chris Brown (R) continues to pursue his quest for a bill outlawing the kind of no-gambling deed restrictions that Caesars imposed on the Claridge Hotel and Atlantic Club. Good for him. One shouldn’t be able to use an asset sale as a means of inhibiting competition.

sugarhouse-casino* After complaining loudly, but to no avail, that the Philadelphia market was maxed out, SugarHouse Casino went ahead with the logical next move: a nearly 160% expansion, including a seven-story parking garage tailored for the convenience of poker players. “There is currently too much gaming capacity in the Northeast, but we made a promise to Philadelphia that one day we would expand and make SugarHouse Casino bigger and much better,” CEO Greg Carlino rationalized.

sugarhouse-house-current-design1The casino will be adding 400 slots, 30 table games and 30 poker tables. Much of the 160,000 feet of new square footage will go toward an event center and restaurants. The second phase of SugarHouse was originally meant to be larger still“In 3 1/2 years of operation, we’re a lot smarter now,” explained General Manager Wendy Hamilton. “We’ve seen where there is demand, and what people want as part of their gaming experience. That’s why even though we don’t need a lot of gaming at this point, we knew we needed these amenities to round out the experience.”

One of those things players demanded was poker and a temporary poker room will debut in autumn, to placate demand until the permanent room is ready.

* Casino applications are as scrutinized in Nevada as in almost anywhere else, so the state should know whether they’re squeaky clean enough to dabble in the medical-marijuana business. However, the state is sticking to its stance that gaming operators should stay out of a business that’s illegal at the federal level. Surprisingly, many small-fry gaming operators are choosing loco weed instead. Among those getting out of the casino biz are household names like Troy Herbst and publisher Brian Greenspun. To say this is a surprising development would be an understatement. It can now longer be taken for granted that gambling is where the money in Nevada is.

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