Newly filed documents with the New Jersey Division of Gaming
Enforcement suggest that Seminole Hard Rock Entertainment has renewed interest
in the Atlantic City casino market, although exactly what the company's
intentions are remain unclear.
For months, rumors have swirled that Hard Rock is among the
parties interested in purchasing Revel Casino Hotel. Local politicians have
confirmed that interest, but to date neither Hard Rock nor Revel has spoken
publicly about any negotiations.
Documents released Monday, however, confirm that Hard Rock
asked state regulators whether the Seminole Indian Tribe would have to qualify
for a casino license if Hard Rock were to pursue building or buying an Atlantic
City casino. The Hard Rock International brand is owned by the Fla.-based
tribe. The company has 140 restaurants, 18 hotels and eight casinos across 57
countries.
According to the ruling issued by the state Feb. 6, the
tribe was waived from qualifying for a license, although several Hard Rock
executives would have to qualify. Among them: Hard Rock's chairman, CEO and
president, James Allen, and Brad Buchanan, executive vice president, CFO and
secretary. Eight other individuals are listed. Allen is a former Atlantic City
casino executive.
Messages left Monday for Hard Rock representatives regarding
the company's interest in Atlantic City were not returned. Lisa Johnson, a
spokeswoman for Revel, did not respond to requests for comment.
Kerry Langan, a spokeswoman for the Division of Gaming
Enforcement, said the company applied for something known as a statement of
compliance under the Casino Control Act. The process allows an entity and the
persons associated with the entity to be investigated before any casino
purchase. Based on the investigation, the entity and person can be found to
meet certain licensure qualification criteria, she said.
"As an initial step, Hard Rock sought rulings as to the
entities and individuals necessary for it to obtain a statement of compliance.
An order which addresses the requests has been entered," Langan said.
This is not the first time Hard Rock has shown interest in
Atlantic City. The company previously had a plan to construct a small
"boutique-style" casino under legislation allowing casinos with fewer
than 500 hotel rooms.
In 2012, however, Hard Rock said the market conditions
caused the company to change its mind.
Hard Rock has other interests in New Jersey. Last year, the
company bought a stake in the Meadowlands Racetrack and announced that the sale
would position it well for "projected future development at the
racetrack," leading to speculation that the company may be positioning
itself should casino expansion ever be approved.
Hard Rock is not the only company with possible interest in
purchasing Revel, whose management said last year that the casino was pursuing
a sale or another bankruptcy. The $2.4 billion casino emerged from bankruptcy
after a year in operation. Caesars Entertainment Corp., which owns four
Atlantic City casinos, has shown interest in the property, according to
lawmakers.
State Sen. Jim Whelan has spoken out against that
possibility, saying if Caesars were to purchase Revel it would exert too much
control over the resort's casino market. That would violate state law
prohibiting one company from having an "undue economic
concentration," Whelan said.
Meanwhile, casino workers union Local 54 has called on the
state to protect the jobs of the casino's 3,000 workers in case of a sale to
Hard Rock. The union referenced widely circulated suggestions that if Hard Rock
buys the property, it may be temporarily shut down for renovations, leaving the
workers to reapply for jobs.
According to the statement signed by DGE Director David
Rebuck, the state reserves the right to require that the Seminole Tribe qualify
for a license if its circumstances change.
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