European Stars And Stripes (Newspaper) - February 18, 1981, Darmstadt, Hesse                                Atlantic City tale of woe fantasy land by Peter Mattiace associated press the future once looked so Bright for Atlantic City the billions in fresh the construction the glittering Casino the endless streams of eager the coming the thousands of and the phenomenal profits that promised to keep it All coming Well into the 21st it still looks and it All has sometimes beyond the promises made to new Jersey voters in 1976 when they approved Atlantic City Casino gambling As a unique tool of Urban theres no question this City will continue to grow and All it takes is says Joseph chairman of the new Jersey Casino control certainly were going to have our ups and Downs in the its been Only years since casinos opened going to have nine i think this is phenom to no ones old problems remain amid the fantasy land that is within a chips throw of the the poor Are still rents and real estate prices soar As precious few housing units Are built to meet the needs of the lower and Middle streets show the first signs of real congestion and the famous convention a key to the cites still shows All of its 52 the new Casino the ultimate key to it is crying a new tale of woe claiming Oner Ous state controls hinder traditional management Prero stifle profits and discourage vital new invest Industry executives say Atlantic City profit margins Are so slim their firms would do better to invest their millions in common Bank savings certificates than Strug Gle with new Boardwalk Casino december was the first monthly across Leboard los ing month for Atlantic cites casinos a 20 percent drop in several factors Are blamed for the losses More High operating costs and the traditional thanksgiving Tonew years eve Sag in the but the rest of the Winter also looks Bleak for have we killed the Goose before she Laid the Golden egg asks insurance Man Steven president of the greater Atlantic City chamber of Here is a look at recent developments in the Casino scene at Atlantic City ramada inns Tropicana and Del webbs Claridge Are expected to open this Spring and sum bringing the number of Casino hotels to but when the 1 oth Casino hotel will open is anyone there Are no other Casino hotels under v work on the proposed 500room pent House Casino hotel has been stalled for More than a year As pen House publisher Bob Guccione searches for addition Al work on the proposed 540room dunes Casino hotel has been stalled for More than a year As its owners see additional is construction and renovation to the former Shelburne hotel for a proposed 503room Casino hotel has been stalled since last a group of japanese led by Benchana of Tokyo chairman Hiroaki Rocky needs additional v work on the proposed Sahara Casino hotel on the Boardwalk site of the former president hotel has been qui etly postponed by Del Webb because of financing resorts International has promised to build a Casino Urban renewal but it cannot get Clear title to the land because of a dispute with the state attorney general Over possible claims dating Back to the Many firms have halted construction or backed out of on oct Harrah president told the Casino control commission that state and local government agencies greatly contributed to a increase in the final 120million Cost of Harrah Marina Casino the 21 fire tragedy at the Mem grand hotel in Las vegas put some doubt into the Parent firms plans to build a Casino hotel in Atlantic Mem grand hotels insists the Marin area project is still but must be delayed for several months while it works on rebuilding its Las vegas december was a losing month for Atlantic cites Casino its first monthly across Leboard the rest of the Winter looks Bleak for several factors Are blamed for december More a 20 percent drop in Casino High operating costs and the traditional thanksgiving Tonew years eve Sag in the v on Caesars world said it cannot now proceed with a proposed 500room expansion of its 527 room Caesars Boardwalk Regency or build its proposed Caesars Palace Atlantic City just up the the firm cited onerous state Casi no regulations for its f on a Caesars executive said his firm will phase out its bus important Industry Market ing tool to bring in gamblers because it is socially unconscionable for casinos to take people from nursing Homes in Camden and the Industry continues fighting for patrons by offering bonuses that earn Day trippers up to a Day just for the on Hilton International said it was Post poning plans to build a key 700room Casino hotel with Mem grand Hilton blamed High inter est rates and Uncertain Market conditions in Atlantic on Holiday inns said it was postponing plans for a 554room Casino hotel on the already a partner in Harrah Holiday inns cited Atlantic City Market conditions and profitability within the new Jersey regulatory on the Trump organization of new York said it was delaying plans for a 610ropm Casino hotel on the Trump said it was waiting to see if the regulations Are changed so you Are allowed to make a profit in Atlantic on the 504room Brighton hotel a bargain that opened As the fourth Legal Casino last announced plans to seek refinancing or part february 1981 ners to relieve its cashflow the Industry wants state concessions in several areas it insists will improve profit margins without endangering the integrity of the Casino hotels or the Casino it wants an end to state requirements for daily live an end to slate requirements for mini mum numbers of and an end to state review of an end to some state requirements on Casino and hotel and an easing of controls on which Are Casino sponsored trips for High for the the Industry wants anything it can get from the said one Industry the implied threat is that not Only will Atlantic City fail to reach its but billions of dollars ear marked for Atlantic City investment will go to new Massachusetts and Pennsylvania if those states legalize Casino Lordi and other commissioners Are clearly annoyed at the Industry talk of Over regulation especially its Endrun around the commission to argue its Case directly to the the Public and Wall Street the commission itself has indicated it is prepared to review any regulation the Industry thinks May be onerous or too we will see if the criticisms Are Lordi but i doubt very much that regulations have much to do with the business decisions that have been made in the past few my personal opinion is that the Economy As Well As the demand has More to do with these business Lordi after separate meetings with Lordi and the assemblyman Richard chair Man of the powerful Assembly state government com promised hearings and new legislation this Spring and summer to ease up a bit on the the commission plans its own hearings 23 to let the Industry air its gripes on Lordi the commission is working to rewrite some its own Many of which were imposed specifically to control resorts International hotel Casino during its phenomenally lucrative 14month monopoly on East coast i dont think casinos Are but i do think some of our regulations should be reconsidered in Light of changing that already being the stars and stripes Page 13