Philadelphia developer Bart Blatstein is betting big that family-friendly entertainment will draw patrons to his noncasino hotel in the nation's second-largest gambling mecca, Atlantic City, New Jersey.
The Showboat Resort & Convention Hotel, which already plans to debut a $100 million indoor water park, is now doubling down on its nongambling offerings, according to Blatstein and his company, Tower Investments. Expansion at the property at 801 Boardwalk will continue, with the May 15 launch of what Tower touts as New Jersey's largest arcade, at more than 100,000 square feet, as well as other attractions.
The new Lucky Snake at Showboat component, in addition to the arcade, will feature a 25,000-square-foot sports bar with a boxing ring, indoor venues for live entertainment, a speakeasy, and upgraded convention and meeting spaces.
Blatstein acquired the Showboat, the largest noncasino hotel in New Jersey, in January 2016 for $23 million from Stockton University in Galloway, New Jersey, when the school's plans to turn the site into a dormitory fell through. Since then, he has been taking steps to position the hospitality property to attract clientele beyond gamblers, adding family-oriented attractions. State and local officials agree that diversifying seaside Atlantic City's economy beyond gambling and making it a year-round destination for adults and their families is key to its long-term success.
"Clearly, he's ahead of the curve," said Bob Ambrose, a gaming and hospitality consultant in New Jersey, referring to Blatstein. "Atlantic City suffers from one main thing: Other than the casinos, it's seasonal. And in order to create a four-season environment, No. 1 you need to have indoor activities in the wintertime. ... And I think he's really showing some foresight in terms of what he wants to do."
In December, Blatstein won state approval to construct an indoor water park near the Showboat. He told the Associated Press that work on that project is slated to start in late May. That attraction will be a year-round draw, Ambrose said.
A beer garden and an 8,000-seat outdoor concert venue with a retractable roof are also on the drawing board for the Showboat, according to Blatstein.
The developer didn't immediately return an email from CoStar News seeking comment.
Blatstein's announcement Thursday came a day after Caesars Entertainment said it was spending $400 million from now through 2023 to upgrade its three Atlantic City hotels: Caesars Atlantic City, Harrah's Resort Atlantic City and Tropicana Atlantic City.
The Showboat's arcade will have what's billed as the world's largest crane game, rising from floor to ceiling, classic games from the 1980s through today, state-of-the-art virtual reality games, as well as basketball, pinball, and Skee-Ball.
"Here you have this empty casino space — what do you do with it?" Ambrose said. "What [Blatstein's] putting in is tremendous. ... He's offering sports. He's got live entertainment. There's a boxing ring. All these things are very, very family friendly."
The Showboat ceased operating as a casino before it was sold by then-owner Caesars to Stockton in December 2014 for $18 million.
"The arcade will offer some of the best redemption prizes around, including everything from candy to designer purses and jewelry, cars and motorcycles, and even all-inclusive vacations," according to Tower's statement. "The arcade's reward program will be comparable to the most advanced and favored customer loyalty programs in the casino industry."
The new sports bar will include an e-sports gaming area, as well as a 20-by-20-foot boxing ring. Live entertainment will be programmed seven days a week.
The speakeasy concept will feature the landmark Riviera sign "that was once a staple on the Las Vegas strip," according to Tower.
"We at Tower Investments are extremely proud of this hotel and are thrilled to further expand on its offerings for guests of all ages, especially families," Blatstein said in the statement. "It has always been our mission to deliver an unforgettable experience for our guests and we are delighted to bring a family-friendly and year-round resort option to Atlantic City."