Camelot Hotel/Casino Explained

The Camelot Hotel/Casino was a proposed hotel and casino that was to be built in the early 1980s in Atlantic City, New Jersey. The site of the proposed project was located in the marina district, adjacent to Harrahs Resort, and was to consist of 990 hotel rooms and a 60,000 sq ft casino. Entertainer Merv Griffin was appointed as entertainment director of the company and planned to broadcast his television show from the hotel.[1] [2] However, because of financial, political and legal difficulties, construction of the hotel/casino was never completed and a casino license was never issued.

History

The project was initially owned by American Leisure Corp., headed by Nathan S. Jacobson. Jacobson was an insurance executive who became the president and part owner of Caesars Palace in Las Vegas, Nevada during the 1960s. He had come under scrutiny by the government because he had appointed Jerome Zarowitz, who had organized crime connections, as director of casino operations.[3] Jacobson faced charges from the Securities and Exchange Commission relating to the sale of Caesars Palace in 1969.[4] [5] Jacobson also developed and operated the Kings Castle Hotel and Casino in the Lake Tahoe, Nevada area in the early 1970s, until it filed for bankruptcy in 1972.[6] [7]

Cavanagh Communities Corp., a Florida land sales company, sold an 8.2 acre parcel of land in Atlantic City's marina district in April 1980 to American Leisure Corp. in exchange for stock and cash.[8] [Cavanagh had also planned to open a casino, called Royale Vista, on another adjacent nine acre parcel of land.<ref>Cavanagh Points Interests Toward Casino Business Sarasoto Herald-Tribune Feb. 1, 1981 [https://news.google.com/newspapers?nid=1755&dat=19810201&id=sPIcAAAAIBAJ&sjid=3GcEAAAAIBAJ&pg=4803,221520] However, that parcel was sold to Resorts Casino Hotel in 1983, after a Cavanagh subsidiary filed bankruptcy.[9] ] Penny stock broker Blinder, Robinson & Company underwrote a stock offering of $25 million for American Leisure during the beginning of 1980 to provide funding for the project. However, in August 1980 the Securities and Exchange Commission brought charges against a number of parties, including Blinder, Cavanagh, American Leisure and Jacobson because the broker withheld information during the offering.[10] [11] [12] [13] [14]

In 1983, Southern Sun Hotel Holdings Ltd., based in South Africa and headed by Sol Kerzner, was slated to take over as majority partner on the project. However, they faced significant community and political pressure because of the apartheid government in South Africa.[15] [16] As a result, Southern Sun dropped their plans to invest in the project later that year.[17] The company was the owner of the Sun City resort in the supposedly independent country of Bophuthatswana. Sun City later gained notoriety when a prominent group of musicians, called Artists United Against Apartheid, released a record called "Sun City" and vowed never to play there. Kerzner later returned to Atlantic City, after the end of the apartheid South African government, when he bought the Resorts Casino Hotel in 1997, ironically from Merv Griffin's Griffin Gaming & Entertainment.[18]

American Leisure merged with Midland Resources in 1984 to create American Midland Corp.[19] [Midland Resources had planned to develop a casino on the Boardwalk adjacent to the Convention Center. The project, under the name of Royale Atlantic, was initially planned in 1979 by [[Robert Maheu]] (a former aide to Howard Hughes) and Grady Sanders. Unable to raise sufficient funding, Midland took over the project, renamed the Atlantic Plaza Hotel Casino, but also could not find financing. Finally, the land was leased to Donald Trump, who developed it into Trump Plaza.[20] [21] ] In 1986, two theatrical producers, who had recently bought Sardi's restaurant in New York City, joined up with American Midland in a plan to develop the Sardi's Broadway Casino Hotel on the site.[22] [23] However, the plan fell through. (Sardi's restaurant filed for bankruptcy in 1990 and ownership of the restaurant was returned to the Sardi family.[24]) Currently the site remains vacant.

References

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Notes and References

  1. In This Corner . . . It's Griffin Vs. Trump, And The Prize Is Resorts By Jennifer Lin, Inquirer Staff Writer March 24, 1988 http://articles.philly.com/1988-03-24/business/26279867_1_resorts-board-donald-trump-marvin-roffman
  2. KINARK CORP. v. CAMELOT, INC.Civ. A. No. 81-1364.548 F.Supp. 429 (1982) http://www.leagle.com/decision/1982977548FSupp429_1897/KINARK%20CORP.%20v.%20CAMELOT,%20INC.
  3. Las Vegas Babylon: The True Tales of Glitter, Glamour, and Greed By Jeff Burbank https://books.google.com/books?id=IfKkR0eOE5oC&amp;dq=nathan+jacobson+caesars&amp;pg=PA52
  4. Web site: SEC News Digest 1971 . 2017-08-27 . 2017-02-11 . https://web.archive.org/web/20170211213850/https://www.sec.gov/news/digest/1971/dig120871.pdf . live .
  5. Web site: SEC News Digest 1975 . 2017-08-27 . 2017-02-07 . https://web.archive.org/web/20170207010529/https://www.sec.gov/news/digest/1975/dig061075.pdf . live .
  6. Tiegel. Elliot. July 18, 1970. Kings Castle Making Bid for Vegas' Silver Circuit Gold. Billboard. 26. 2021-01-12. 2022-04-03. https://web.archive.org/web/20220403234231/https://worldradiohistory.com/Archive-All-Music/Billboard/70s/1970/Billboard%201970-07-18.pdf. live.
  7. News: February 6, 1972. Casino in Nevada Closes; World Money Crisis Cited (Published 1972). en-US. The New York Times. 2021-01-12. 0362-4331. 2021-01-14. https://web.archive.org/web/20210114092631/https://www.nytimes.com/1972/02/06/archives/casino-in-nevada-closes-world-money-crisis-cited.html. live.
  8. https://news.google.com/newspapers?nid=2206&dat=19800416&id=F6glAAAAIBAJ&sjid=dfMFAAAAIBAJ&pg=3622,1922711 Cavanagh to sell land for casino Miami News April 16, 1980
  9. RESORTS ACQUIRING NEW CASINO SITE By Donald Janson August 21, 1983 New York Times https://www.nytimes.com/1983/08/21/nyregion/resorts-acquiring-new-casino-site.html
  10. Web site: SEC News Digest 1980 . 2017-08-27 . 2017-02-12 . https://web.archive.org/web/20170212034813/https://www.sec.gov/news/digest/1980/dig091180.pdf . live .
  11. Web site: SEC News Digest 1981 . 2017-08-27 . 2017-02-22 . https://web.archive.org/web/20170222095510/https://www.sec.gov/news/digest/1981/dig051881.pdf . live .
  12. Securities & Exchange Commission - In the Matter of BLINDER, ROBINSON & CO., INC. https://www.sec.gov/litigation/aljdec/1990/id19900427bpm.pdf
  13. Blinder, Robinson Chief Barred by S.E.C. Judge By Gregory A. Robb, Special to The New York Times April 28, 1990 https://www.nytimes.com/1990/04/28/business/blinder-robinson-chief-barred-by-sec-judge.html
  14. Cavanagh, chairman charged with fraud St. Petersburg Times September 3, 1980 https://news.google.com/newspapers?nid=888&amp;dat=19800903&amp;id=P7sNAAAAIBAJ&amp;sjid=hVoDAAAAIBAJ&amp;pg=2457,1053531
  15. PLAN FOR SOUTH AFRICAN CASINO IN ATLANTIC CITY STIRS WIDE PROTESTSBy Donald Janson Special to the New York Times April 19, 1983 https://www.nytimes.com/1983/04/19/nyregion/plan-for-south-african-casino-in-atlantic-city-stirs-wide-protests.html
  16. Web site: Uproar over casino bid by S.A. firm The Afro-American April 30, 1983 . October 7, 2016 . November 10, 2023 . https://web.archive.org/web/20231110020945/https://news.google.com/newspapers?nid=2211&dat=19830430&id=IC0mAAAAIBAJ&sjid=Nf4FAAAAIBAJ&pg=2549,1836437 . live .
  17. Web site: SOUTH AFRICANS DROP CASINO PLANS UPI June 16, 1983 . February 6, 2017 . March 6, 2016 . https://web.archive.org/web/20160306182227/http://www.nytimes.com/1983/06/16/nyregion/the-region-south-africans-drop-casino-plans.html . live .
  18. Can the Man Who Made Sun City Make It In Atlantic City? By Jonathan Rabinovitz September 21, 1997 New York Times https://www.nytimes.com/1997/09/21/magazine/can-the-man-who-made-sun-city-make-it-in-atlantic-city.html
  19. Web site: Midland Resources By Reuters March 13, 1984 . February 6, 2017 . March 6, 2016 . https://web.archive.org/web/20160306201848/http://www.nytimes.com/1984/03/13/business/midland-resources.html . live .
  20. Pill & Puff owner has Atlantic City project Milwaukee Sentinel May 31, 1979 https://news.google.com/newspapers?nid=1368&amp;dat=19790531&amp;id=mYFQAAAAIBAJ&amp;sjid=7hEEAAAAIBAJ&amp;pg=4052,6435588
  21. http://www.rulit.net/books/boardwalk-empire-the-birth-high-times-and-corruption-of-atlantic-city-read-242455-70.html Boardwalk Empire by Nelson Johnson
  22. SARDI'S OWNERS PLAN TO BUILD ATLANTIC CITY CASINO-HOTEL October 4, 1986 New York Times https://www.nytimes.com/1986/10/04/arts/sardi-s-owners-plan-to-build-atlantic-city-casino-hotel.html
  23. Web site: New Hotel Planned For Atlantic City Reuters November 19, 1987 . February 6, 2017 . November 2, 2017 . https://web.archive.org/web/20171102151853/http://www.nytimes.com/1987/11/19/business/company-news-new-hotel-planned-for-atlantic-city.html . live .
  24. Owner of Sardi’s Restaurant Dies at 91 By William Grimes January 4, 2007 New York Times https://www.nytimes.com/2007/01/04/nyregion/04cnd-sardi.html?pagewanted=all&amp;_r=0

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