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

By jili tutorial · September 26, 2026

The Showboat Atlantic City Foreclosure Case: A Detailed Breakdown

Overview: What’s Happening at the Showboat Hotel?

The iconic Showboat Hotel in Atlantic City is facing a serious legal challenge that could lead to foreclosure. Its primary lender, Computershare Trust Company, has filed a civil complaint in New Jersey Superior Court alleging that the property’s owner, Bart Blatstein, has not made any debt payments since April 6, 2025 — a period of 17 months. The case puts the future of the non‑gaming resort, including its recently opened Island Waterpark, at a critical juncture.

This guide provides a comprehensive look at the dispute, the parties involved, the financial backdrop, and what the outcome could mean for the hotel, its employees, and Atlantic City’s tourism landscape.

Background: The Showboat’s Transformation

From Casino to Family‑Friendly Resort

Original use: The Showboat was a Mardi Gras‑themed casino owned and operated by Caesars Entertainment. It closed in August 2014 as part of a wave of casino shutdowns that hit Atlantic City.
Purchase by Bart Blatstein: In January 2016, Philadelphia real estate developer Bart Blatstein bought the vacant property for $23 million. He converted it into a non‑gaming hotel and entertainment complex, specifically targeting families who wanted to avoid the smoky casino floors and slot machines.
Key attractions today:
- Lucky Snake Arcade — billed as the “largest arcade in the world.”
- Island Waterpark — a $100 million indoor water park that opened on July 4, 2023.

The property now employs about 500 people and, according to Showboat’s own court filings, hosted 1.2 million guests in the 12 months preceding the legal action.

The Financial Allegations: What the Lender Says

The Loan and the Trustee

Loan origin: On October 31, 2022, Barclays Capital Real Estate issued a $48.5 million loan to Blatstein.
Trustee role: Computershare Trust Company is acting as the trustee for that loan — essentially the administrator responsible for collecting payments and managing the debt.

The Core Complaint

In the complaint filed in New Jersey Superior Court, Computershare alleges:

No monthly debt service payments have been received since April 6, 2025 — a delinquency of 17 months.
The borrower (Showboat/Blatstein) also failed to pay taxes in full and let insurance lapse.
Computershare was forced to advance $969,695 in insurance premiums on behalf of the property.
Showboat missed two deadlines related to room renovations, as required by the loan terms.

Computershare is asking the court to place the property into foreclosure without delay.

Showboat’s Response

Attorneys for Blatstein did not deny that payments have stopped. Instead, they argued in a motion that:

Business is strong and the property is thriving.
Debt obligations are “being addressed.”
Instead of foreclosure, the court should appoint a rent receiver — a third party who would manage the property and collect income to restart debt payments while the legal issues are resolved.

Lender’s Rebuttal

Computershare responded sharply, stating that Showboat is trying to “have it both ways” — claiming the property is financially healthy while simultaneously failing to meet basic obligations like taxes, insurance, and loan payments. The court filing reads:

“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 Island Waterpark: A Troubled Investment

Early Buzz and Rapid Decline

The Island Waterpark was a centerpiece of Blatstein’s family‑friendly vision. Opening to much fanfare on July 4, 2023, the water park was expected to draw visitors year‑round. However, the initial hype quickly faded.

Hours scaled back: The water park announced it would be closed Tuesday through Thursday, with weekend hours reduced.
Price cut: Admission was slashed from $89 to $49.
Contractor liens: Roughly a year after opening, contractors who worked on the water park filed liens against Blatstein, alleging unpaid bills. Blatstein later paid those amounts in full.

When asked by the Press of Atlantic City about financial troubles, Blatstein responded: “None whatsoever. We’re having our best year.”

Legal Timeline and Next Steps

Key Dates

Event	Date
Loan issued (Barclays)	Oct. 31, 2022
Island Waterpark opens	July 4, 2023
Last known payment to lender	April 6, 2025
Lawsuit filed by Computershare	Mid‑2026 (17 months of non‑payment alleged)
Court hearing on motions	October 9, 2026

Possible Outcomes

Foreclosure: If the court sides with Computershare, the property would be sold to satisfy the debt. That could force the Showboat to close or change ownership.
Appointment of a rent receiver: The court could appoint a third party to run the hotel and collect revenue until the debt is repaid — allowing the legal dispute to continue without immediate closure.
Settlement or refinancing: Blatstein could negotiate a new payment plan or secure new financing to pay off the existing loan and avoid foreclosure.

Why This Matters for Atlantic City

Jobs: The Showboat employs 500 people, and its closure or disruption would affect the local workforce.
Tourism: The property offers a unique alternative to traditional casinos, catering to families and non‑gamblers. Its loss would reduce Atlantic City’s appeal beyond gaming.
Real estate market: A foreclosure sale could affect property values on the Boardwalk and signal broader financial stress among non‑casino hotels in the area.

Frequently Asked Questions (FAQ)

Q: Is the Showboat closing for good?
A: Not immediately. The court will decide on October 9, 2026, whether to initiate foreclosure or appoint a receiver. The hotel remains open for business until a final ruling.

Q: Can guests still book rooms and visit the water park?
A: Yes. As of this writing, the Showboat continues to operate normally.

Q: What happens if foreclosure is granted?
A: The property would be sold at auction. The new owner could keep it as a hotel, redevelop it, or close it.

Q: Has Blatstein defaulted on other properties?
A: The article does not provide information about other holdings. This case is specific to the Atlantic City Showboat.

Conclusion: A High‑Stakes Legal Fight

The Showboat Atlantic City is at the center of a contentious dispute between its owner and a lender who claims to have received no debt payments in over 17 months. While the hotel continues to operate and, by its own account, enjoys strong guest traffic and revenue, the financial obligations have gone unfulfilled. The court’s upcoming ruling will determine whether the property can stay in Blatstein’s hands or whether foreclosure will force a new chapter for one of the Boardwalk’s most distinctive resorts.