Morgan Stanley Subsidiary to Build Casino on Atlantic City Boardwalk
Morgan Stanley's subsidiary, Morgan Gaming Cos. Holdings, has bought 20 acres of Boardwalk real estate in Atlantic City, intending to establish a casino.
The $74 million property lies within Atlantic City's casino zone, according to Joe Weinert, managing editor of "Michael Pollock's Gaming Industry Observer."
However, Morgan Stanley has yet to apply for licensing with the New Jersey Casino Control Commission (NJCCC).
Still, NJCCC spokesman Dan Heneghan says the banking house has opened some explorative talks with Garden State regulators.
Sources said Morgan Stanley's development partner will be Rank PLC, which owns the Hard Rock brand.
"It remains to be seen if Morgan Stanley would own this property outright," Weinert noted. He added, "The city would like to see (the property) put on the tax rolls and made a lot more attractive." Currently, the property is occupied by "weeds, rocks, dirt ... broken glass," Weinert said.
Former Trump Entertainment CEO Scott Butera said Morgan Stanley is "very bullish on Atlantic City." He added, "That's why they made an investment in Trump."
Morgan Stanley is known to have rescued Donald Trump's casino company, Trump Entertainment Resorts, from bankruptcy.
On the other hand, Dan Ahrens, the Gaming and Casino Fund Manager, said, "I assume they're (Morgan Stanley is) looking at it as a valuable investment that happens to be in gaming."