Glenn Straub admittedly is new to the New Jersey business climate.
Florida developer Glenn Straub continues to have problems with New Jersey gaming regulators. Now Mr. Straub has filed a lawsuit against the New Jersey Casino Control Commission, claiming they are holding him to a higher standard than other landlords in the city.
Glenn Straub’s Polo North Country Club bought the Revel Building n a bankruptcy auction for $82 million in spring 2015. At the time, the price appeared to be a steal, as Straub was getting the building for 5% of its original price tag of $2.4 billion.
Introduction of TEN Casino
Since then, the new owner has had trouble opening a business in the Revel Building, which he has renamed Ten Casino. He was involved in a 6-month lawsuit with ACR Energy Partners, who provided electricity to the skyscraper. Eventually, Straub bought out ACR Energy Partners for $30 million.
The way seemed to be clear for a grand opening of the Revel Hotel in June 2015, but Glenn Straub has encountered troubles with licensing. The Casino Control Commission requires Glenn Straub to receive a full gaming license, like Caesars Entertainment or MGM Resorts has.
Glenn Straub does not see it that way. He sees himself as a landlord, claiming he plans to hire a management company to run the casino operation, much like Morris Bailey did with Mohegan Sun at Resorts Casino. As the owner of TEN Building, Glenn Straub does not see why he needs to acquire a full casinbo license.
Straub’s Lawsuit against the NJCCC
To that end, Glenn Straub has filed a lawsuit against the NJCCC and wants to get the approval of the New Jersey courts to skip the licensing process. It is his stated plan now to launch TEN Casino in the Spring of 2017.
If and when he does so, he plans to has a 130,000 square foot gaming floor with 2500 slot machines and 120 gaming tables. TEN Casino’s adjoining entertainment and leisure area will have 13 restaurants, 3 nightclubs, 2 theaters, a comedy club, a day club, and a spa.
Though he has filed a lawsuit, Straub continues with the licensing process. He does not have confidence the New Jersey courts will approve his requests.
Red Tape in New Jersey Government
Over the months, Glenn Straub has complained about the red tape he has encountered while trying to open the former Revel Building for business again. Once or twice, he had threatened to abandon the entire project, leaving Atlantic City with one less operational skyscraper and a cash-strapped city with thousands of fewer jobs (and taxpayers).
Mr. Straub once said he has opened businesses in 5 different states, but he has never encountered the kind of red tape and bureaucracy that he faces in New Jersey. This is the first land-based casino Glenn Straub has sought to open anywhere.
Statement on the Lawsuit
David Stefankiewicz, who serves as Straub’s lawyer, released a statement about the lawsuit. Stefankiewicz said, “Mr. Straub has spent a lot of time, effort and money in trying to make Atlantic City great again. He remains ready, willing and able to open the casino.
“Instead of creating roadblock after roadblock, the agency should be doing everything in its power to facilitate getting this casino opened. Doing business here should not be this hard. The CCC is putting Straub and his company through unnecessary red tape and delay.”
The lawyer added, “This is both puzzling and disappointing considering that the future of Atlantic City is hanging by a thread and thousands of people are out of work.”
New Jersey CCC Statement
New Jersey’s Casino Control Commission has not made a statement in reply to the lawsuit. The Casino Control Commission directs visitors to their website to visit the Division of Gaming Enforcement’s page on casino licensing.
The Division of Gaming Enforcement has a statement on it webpage about the licensing process in New Jersey. That statement reads, “The Casino Licensing Bureau assures that each applicant for, and holder of, a casino license and every affiliated company, officer, director, principal employee, financial backer and investor meets the standards of financial responsibility, honesty, integrity and good character as mandated by the Casino Control Act.
“The Bureau accomplishes this mission by investigating and monitoring business transactions of the applicant or licensee and related companies; conducting investigations of each officer, director, principal employee, financial backer or significant investor and examining the background of the casino company and its affiliated entities.“
