NJ Lawmakers proposes a bill to lift Showboat Deed Restriction

State Sen. James Whelan and Assemblyman Vincent Mazzeo proposed a legislation that would remove land covenants on the former Showboat Casino site in Atlantic City on Monday.

According to the proposal, any covenants or deed restrictions on property held by public entities in the city’s tourism district violate the public interest, making them void and unenforceable, although it was not clear whether the legislation could accomplish that goal or if a judge would have to approve the plan.

Caesars Entertainment shut the still-profitable Showboat in August to reduce the competition in the struggling Atlantic City casino market. In December, it sold the property for $18m to Stockton, which planned to use it as a long-sought satellite city campus.

However, a 1988 land covenant involving Caesars mandates that the property can only be used as a first class casino and hotel, directly conflicting with the deed restriction placed by Caesars when Stockton bought the property that says the property can be used for anything but a casino.