NJ State Senator Criticizes Caesars on Atlantic Club Purchase

Revel Casino on the Boardwalk__1392811795_67.61.106.27

Ray Rice and Fiance Were Arrested at Revel Casino

New Jersey State Senator James Whelan recently criticized Caesars Entertainment for its purchase of the Atlantic Club Casino Hotel, saying the gaming company is simply trying to shut down a possible competitor. Whelan, who once served as mayor of Atlantic City, claims the purpose of new pro-online gambling legislation was to help Boardwalk casinos survive, while the closing of the Atlantic Club last month produces the opposite result. The closing of the gaming house is not the point of contention, but the future gaming possibilities are.

The Atlantic Club had been in bankruptcy court for months when Tropicana Entertainment and Caesars Entertainment jointly purchased the casino resort. The two gaming corporations divided the casino’s assets and closed it down on January 13, 2014. Caesars collected the property and an 801-room hotel in the settlement, while Tropicana added the club’s gambling equipment and its customer lists.

These are considered normal business practices and have not been criticized, as the closing was seen by many as long overdue. Though 1,600 employees lost their job when the Atlantic Club closed, the operation had been losing money and jobs for years, and most saw the 12th Atlantic City casino as a case of one too many.

Whelan Says Caesars Is Seeking a Deed Restriction

Contraction in this case appeared to be a wise course, but James Whelan has taken exception to further actions by Caesars, though not the Tropicana. Last Wednesday, Whelan sent a letter to the New Jersey State Division of Gaming Enforcement and the Casino Control Commission which accused Caesars of seeking a deed restriction which would require the prevention of a casino being built on the property of any future purchase of the land the Atlantic Club stood on. Such a deed restriction would prevent the property from ever becoming a casino again.

The state senator earlier this year opposed Caesars making a bid on the Revel Casino Hotel, a distressed property which still might file for bankruptcy a second time. He pointed out that Caesars already owns 4 of the 11 remaining casinos in Atlantic City, as it already owns Caesars Atlantic City, Bally’s Atlantic City, Harrah’s Resort Atlantic City, and the Showboat Casino Hotel.

James Whelan described the prospect of allowing a company to add a 5th such property as “undue economic concentration” in Atlantic City. Company spokesman Gary Thompson declined confirmation on whether Caesars is interested in buying a fifth Boardwalk property.

Ray Rice Arrested at Revel Casino

Baltimore Ravens star running back Ray Rice was arrested at Atlantic City’s Revel Casino around 3am on Saturday night. The Atlantic City Police Department says Ray Rice and Janay A. Palmer, described as Rice’s fiance, were taken to a holding facility at the Revel Casino. They later were released, but received a summons to court.

Police reviewed surveillance footage of an incident involving Ray Rice and Janay Palmer, which showed the two of them in a physical altercation with one another. The police said, “It appeared both parties were involved in a physical altercation. The complain summons indicates that both Rice and Palmer struck each other with their hands.”

When police responded, the officer on the scene signed a simple assault complaint against both participants. No injuries were reported to either person, but that may not be the full story. A subsequent report on ESPN’s online news site on February 19 cited video surveillance footage of Ray Rice dragging his fiance from the elevator, so Ray Rice allegedly knocked his fiance unconscious in the altercation.

Ray Rice Background

Ray Rice has been a key part of the Baltimore Ravens’ offense for the past 5 seasons, after taking over as the Ravens starting running back prior to his second NFL season. Rice was a star on the Ravens 2012-2013 squad which won Super Bowl XLVII, but struggled much of the 2013-1014 season, due to injuries. Before playing for the Ravens, Ray Rice was a star runner for Rutgers University in New Brunswick, New Jersey. He played his high school ball for New Rochelle High School in New York State.

The Ravens need a bounceback year from Rice after missing the playoffs for the first time in five years, but the arrest incident is an inauspicious start. Ravens General Manager Ozzie Newsome said the team had not spoken with Rice since the arrest, but the team plans to make him a big part of their 2014 plans. A press release by the Ravens stated, “We are aware of the Friday night situation with Ray Rice and his fiance. We have spoken with Ray, and know that they returned home together after being detained.”