ATLANTIC CITY — Atlantic City Councilman Jesse O. Kurtz says state gaming regulators should require significant reinvestment in the city's casino properties if Caesars Entertainment moves forward with the sale of its Atlantic City holdings.
During an appearance on Off The Press with Scott Cronick on News Talk 1400 & 92.3 WOND, Kurtz said any new owner should be required to invest hundreds of millions of dollars into Caesars Atlantic City, Harrah's Resort and Tropicana Atlantic City to ensure the properties remain competitive.
"I think it's very important that when those purchases happen, there's an opportunity for regulators to force capital improvements in older properties," Kurtz said.
Reports have linked billionaire Tilman Fertitta to a potential acquisition of Caesars Entertainment, although industry reports indicate other investors may also be exploring a deal.
Kurtz said New Jersey regulators should follow the model used during previous casino ownership changes by requiring the successful bidder to make substantial capital investments in each Atlantic City property rather than allowing improvements to be concentrated at only one resort.
"I think that's going to be important—that the older properties get some capital improvements over the next few years," he said.
The councilman also expressed concern about the future of Golden Nugget Atlantic City's online gaming operation if broader casino mergers occur.
According to Kurtz, regulators should ensure online gaming revenues continue supporting Atlantic City's brick-and-mortar casino industry rather than allowing those assets to be separated from the physical resort.
"They have to tie it to the constitutional mission of in-person revitalization of Atlantic City," Kurtz said.
Kurtz warned that allowing profitable online gaming operations to be detached from physical casino properties could weaken employment and investment in Atlantic City.
He made the comments while discussing the city's overall casino outlook, noting that Atlantic City has remained relatively resilient despite increased competition from New York casinos.
Kurtz appeared on Off The Press with Scott Cronick, which airs weekdays from 4 to 6 p.m. on News Talk 1400 & 92.3 WOND.
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Paul Kelly
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