Glenn Straub has been fighting two battles in Atlantic City, both concerning two former casinos. Straub currently owns the former Revel Casino and has been trying to reopen the venue under a new brand known as Ten. While he fights with regulators over how and when the Revel should reopen, he is also trying claim that he should be able to purchase the former Showboat casino. Straub’s Showboat case took to an appeals court last week with the court ruling in agreement with a lower court judge that Stockton University should have been allowed to terminate their contract to sell the property to the businessman.
Straub decided to sue Stockton University after failing to purchase the Showboat. The University had purchased the casino after it was shut down by Caesars Entertainment in 2014 and had plans to use the property for an urban campus. However, the college was unable to solve complicated legal claims as to how the property should be used.
Two deed restrictions were in place, with one stating the venue could only be used as a casino while the other said it could not. Caesars Entertainment had a deed restriction on the property before it was sold to Stockton where the property could never be used as a casino again. However, there was also a covenant from 1988 which involved the Showboat, Resorts and Trump Taj Mahal in which the Showboat could never be used as anything but a casino.
The university decided to sell the property to Straub in 2015 for $26 million. The deal was later terminated by Stockton. The Showboat was then purchased by Bart Blatstein, a developer from Philadelphia and has since reopened as a non-gambling hotel.
Straub commented on the ruling stating that it did not hurt as much since he has since been able to purchase the power plant that operates the Revel property. When he had begun the deal for the Showboat it was mainly to connect the utilities of the property to the Revel but that is no longer needed.
While the University was never able to see a resolution on the covenant or deed restriction, Blatstein reported late last year that he was able to come to an agreement with Carl Icahn, the owner of the Taj Mahal at the time that the Showboat could operate as a non-gambling hotel.