Boardwalk 1000 will own the business, while HR Atlantic City will operate the casino.
Hard Rock Internatoional received approval from the New Jersey Casino Control Commission to proceed with its purchase of the former Trump Taj Mahal in Atlantic City. Once opened in May 2018, the property will be named Hard Rock Atlantic City.
Boardwalk 1000 is the official owner of the property. Boardwalk 1000 is comprised of Hard Rock International as the majority owner, but also consists of significant investors Jack Morris and Joe Jingoli.
HR Atlantic City, a division of Hard Rock International, will be the official casino operator for the Atlantic City casino.
Under New Jersey gaming law, the Casino Control Commission’s consent is needed, if the owner and operator are different.
HR Atlantic City and Boardwalk 1000
To smooth matters for all involved, both Boardwalk 1000 and HR Atlantic City have applied for casino licenses. Gaming operators have faced long periods of review by New Jersey’s regulators in recent years, causing delays in the launch of operations. PokerStars took nearly 3 years to gain approval, while Glenn Straub of Polo North sold Revel Casino after a 3-year delay.
Corporations controlled by and associated with Hard Rock International should take a much shorter span, because it is a known quantity with licenses in multiple US states. PokerStars had to face added scrutiny due to ongoing issues with the US Department of Justice stemming from the Black Friday case. Glenn Straub was an unknown quantity and his company had never owned or managed a casino before.
Division of Gaming Enforcement Approval
In November, the Division of Gaming Enforcement gave its approval for the current arrangement. In a letter dated Nov. 14, the DGE said, “The management agreement has an initial 10-year term, a sufficient duration to ensure reasonable continuity, stability and independence in the management of the operation.”
Hard Rock International, which is owned by the Seminole Tribe of Florida, has been making changes to the former Trump Taj Mahal for months. Since July 2017, workers have been removing the iconic red minarets and onion domes from the casino property, which once was the most prestigious of Donald Trump’s three casinos in Atlantic City.
$500 Million Trump Taj Mahal Renovation
The Seminole Tribe of Florida announced it planned a $500 million renovation of the casino (originally $375 million), which will have the official name of Hard Rock Hotel & Casino Atlantic City. When it re-opens in 2018, Atlantic City will have 8 operating casinos.
Some financial and gaming analysts have expressed concern that additional casino properties in Atlantic City could have a destabilizing effect on the local gaming industry. With 7 Atlantic City casinos, all seven properties have been profitable. Prior to 2014, there were 12 Atlantic City casinos. Four of those properties closed in 2014 and one closed in 2016, because of market saturation, the global recession, and issues stemming from Hurricane Sandy.
Hard Rock Atlantic City’s Strategy
Hard Rock International believes it can integrate into the local casino economy with its large customer database. If so, then the opening of an eighth Atlantic City casinos should add thousands of permanent jobs to a city which needs them desperately.
The Seminole Tribe has owned the Hard Rock Cafe franchise since 2007. The Hard Rock brand includes 202 locations in 59 different countries worldwide. That number include 168 Hard Rock Cafes, along with 23 hotels and 11 casinos.
The Seminole Tribe owns 7 of the casinos, but other companies own a handful of franchises. Hard Rock Las Vegas, for instance, is owned by Brookfield Asset Management of Toronto and managed by Warner Gaming.
