Is Showboat Atlantic City Closing? Lender Says No Payments Received Since April 2025

The Showboat Hotel in Atlantic City hasn’t made payments to its primary lender in 17 months. That’s according to allegations made in a civil complaint filed in New Jersey Superior Court against the Showboat by Computershare Trust Company. The Island Waterpark at The Showboat Resort in Atlantic City. The Boardwalk attraction is set to open to the public on June 30. (Image: The Showboat Resort) Computershare Trust Company is a specialized financial administrator that provides debt trustee and asset administration services. The firm alleges in the court filing that Bart Blatstein, the owner of the non-gaming Showboat, has failed to pay his monthly debt service since April 6, 2025. Computershare is acting as the trustee of the $48.5 million loan Barclays Capital Real Estate issued to Blatstein on Oct. 31, 2022. In response, Computershare is asking the court to put the former casino property into foreclosure “without delay.” Attorneys representing Blatstein didn’t contend that monthly debt payments have gone unpaid. But they stressed in their court motion that business is strong and that the debt obligations are “being addressed.” Showboat’s counsel motioned for the court to reject foreclosure in favor of appointing a rent receiver, who would manage the property and collect its income and revenue to reinitiate the monthly debt servicing as the legal matter is resolved. Foreclosure Sought Computershare responded to Showboat’s motion by saying the hotel is trying to have it “both ways.” “What makes the Showboat Defendants’ opposition particularly unpersuasive is their simultaneous insistence that the Property is thriving, while failing to pay taxes, insurance, and their basic debt service obligations,” the Computershare response said. Showboat continues to suggest that business is good, saying in court filings that the property served 1.2 million guests over the past 12 months and is responsible for 500 employees. The Showboat Defendants describe the Property as ‘a functioning, revenue-generating hotel and entertainment complex.’ Yet this same Borrower, by its own admission, has not paid its lender in over a year and a half, cannot pay its taxes in full, did not pay insurance, and cannot satisfy its obligations to contractors. The Showboat Defendants cannot have it both ways,” the court filing read. Computershare said it was forced to advance $969,695 in insurance premiums after Showboat failed to pay the coverages. The financial institution additionally alleges that Showboat failed to meet two deadlines regarding room renovations. The court said it will decide on the matter on Oct. 9, 2026. Writing on the Water Park Rumblings about Showboat’s alleged financial decline first arose just months after the hotel’s $100 million Island Waterpark opened on July 4, 2023. After the hype surrounding the family-friendly water park quickly faded, the Island Waterpark announced it would be closed Tuesday through Thursday and weekend hours would be scaled back. Admission was also slashed from $89 to $49. A year later, contractors who worked on the indoor water park filed liens against Blatstein on allegations that they hadn’t been paid. Blatstein later paid in full. In response to the Press of Atlantic City’s question about whether the hotel was facing financial problems, Blatstein answered, “None whatsoever. We’re having our best year.” Showboat Backstory Blatstein bought the Showboat in January 2016 for $23 million. The Philadelphia real estate developer acquired the property after it sat vacant following Caesars Entertainment’s decision to shutter the resort in August 2014. Showboat caters to families visiting Atlantic City who don’t want to hear ringing slot machines or be forced to walk through a smoke-filled gaming floor. The former Mardi Gras-themed casino is today home to the Lucky Snake, an arcade that’s billed as the “largest in the world.” The post Is Showboat Atlantic City Closing? Lender Says No Payments Received Since April 2025 appeared first on Casino.org.