Stockton University bought Showboat Atlantic City from Caesars Entertainment back in December 2014. The Showboat casino was closed in August 2014 to lessen competition for the company’s other three casinos in the city, even though it was a profitable operation.
The Showboat was located next to the iconic Trump Taj Mahal casino and Stockton University has proposed to create a satellite campus on the former casino property. However in order for construction to proceed, Stockton University would have to get an approval from Trump Entertainment, the parent company of the Trump Taj Mahal due to a covenant in the contract signed back in 1988 between Trump Entertainment and Caesars stating that the Showboat premises will always operate as a first class resort casino. Stockton has said that it had assurances from Caesars that the restriction wouldn’t become an issue.
Trump Entertainment has confirmed that it will not provide the necessary approval as a college campus next door would pose challenges of underage gambling which the Taj Mahal wishes to avoid.
The troubled company was recently taken over by billionaire Carl Icahn. Executives went on the offensive Friday saying in a statement, “Before spending $18 million, did Dr. Saatkamp ask to see a piece of paper ‘resolving’ the issue? Did Stockton’s lawyer review a document; does a document even exist? Was a title company involved in the transaction? Did it insure over Trump’s contractual rights? Or did they tell the college it would not? Was title insurance obtained? Was Stockton’s Board informed or aware of this issue?”
Stockton Spokeswoman Sharon Schulman said earlier that Stockton’s lawyer and title and insurance companies had all signed off on the purchase.