Senate vote allows for two boutique casinos in Atlantic City

Microcasinos would represent a dramatic departure from the megaresorts that have dotted Atlantic City’s skyline since the advent of casino gambling in 1978.

Following the closings of four casino resorts last year, lawmakers have been looking for cheaper, quicker options to help revitalize the local economy, including the development of boutique gaming halls. The smaller casinos could have as few as 200 hotel rooms instead of the current threshold of at least 500 rooms for the full-fledged casinos.

Bill to permit smaller Atlantic City casinos advances

By a 39-0 vote Thursday, the Senate eased requirements of a 2011 law that originally allowed for the development of two boutique casinos on the Boardwalk. The changes eliminate the requirement that at least one of the microcasinos eventually expand up to 500 rooms.

The original bill also required developers to build their projects from scratch, but the new legislation allows existing noncasino hotels to be converted into smaller-scale gaming halls.

Curtis Bashaw, owner of The Chelsea hotel, reiterated his desire to create an upscale, intimate casino in his Boardwalk property. Bashaw would like to sprinkle in some table games and a few slot machines on the fifth floor to complement The Chelsea’s dining and nightclub attractions.

“The purpose of this is to create a clublike atmosphere where friends can gather and play games and enjoy food and beverage,” Bashaw said.

Bashaw estimated it would take about a year to transform part of The Chelsea into a casino once all the regulatory approvals were granted. However, the state Assembly and Gov. Chris Christie still must give final approval of the legislation for boutique casinos.

“The Chelsea is hopeful to take advantage of this legislation when it is passed and approved by the governor,” Bashaw said.
Bashaw characterized small casinos as a new paradigm for the gaming industry — one that would give tourists an alternative to the “big-box” megaresorts that dominate the city.

“Instead of being in this massive, loud hall with thousands of people, you can be there with a smaller group of friends. You can have smaller niches and feel like you’re in a smaller, residential environment,” Bashaw said.

This is the second time Atlantic City has pushed the idea of smaller casinos as a catalyst for growth. The original bill in 2011 failed to produce any boutique casinos, although Hard Rock International proposed one before killing the project in 2012.

Supporters hope that by loosening the bill’s original requirements, new development will follow.

Sen. Joe Kyrillos, R-Monmouth, a sponsor of the Senate’s revised boutique casino bill, said the smaller gaming halls would create construction jobs and help revive the local tourism industry by adding new attractions.

“Nearly 8,000 hard-working New Jerseyans lost their jobs when four larger casinos closed last year,” Kyrillos said. “Now, more than ever, it is essential that we bolster our efforts to get Atlantic City back on its feet and restore the city’s reputation as a worldwide resort, tourist and convention destination.”