Lenders Move to Foreclose on Part of Showboat
Computershare Trust Company seeks to foreclose on a portion of the Atlantic City resort over $13.68 million in unpaid loan debt.
Updated on Nov. 5, 2026 in Casino
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Computershare Trust Company filed a foreclosure complaint against a portion of the Showboat Resort Atlantic City on June 30 in Atlantic County Superior Court's Chancery Division. The complaint alleges the Showboat owes $13.68 million on a $48.5 million loan originated in 2022, and a judge will hear arguments on the case on Friday.
Why it matters
The potential foreclosure would cover 475 hotel rooms, the 1,950-space parking garage and the Lucky Snake Arcade, affecting a significant share of the resort's operations in Atlantic City. The lender argues construction liens violated loan terms requiring the property to remain free of such encumbrances.
The complaint alleges $13.68 million owed on a $48.5 million loan, with no payments made for 17 months. Blatstein purchased the property from Stockton in 2016 for $23 million, and the $100 million renovation remains tied to the contested loan terms.
The players
Computershare Trust Company
The trust company that filed the foreclosure complaint against a portion of the Showboat property, acting on behalf of the lender in the $48.5 million loan agreement.
Blatstein
The Philadelphia-based developer who purchased the Showboat from Stockton in 2016 and whose company is at the center of the loan default and construction lien dispute.
The details
The complaint cites unfinished guest room renovations missed by an Oct. 31, 2023 deadline and mold remediation work identified in an environmental assessment. Construction liens were filed by Capital Concrete, Parker Interior Plantscape, Sunbelt Rentals, Servpro of King of Prussia and R. Palmieri Electrical Contractors, and New Jersey canceled a $4.2 million revitalization grant that had been approved but not paid out.
Timeline
2016: Blatstein purchased the Showboat from Stockton for $23 million.
2022: The $48.5 million loan was originated.
Oct. 31, 2023: Deadline for guest room renovations passed without completion.
June 30: Foreclosure complaint filed in Chancery Division.
Friday: A judge hears arguments in the foreclosure case.
Legal Context
Foreclosure proceedings against Atlantic City casino properties follow a pattern of lenders pursuing remedies when owners default on loans tied to costly renovations. The Showboat case reflects the broader financial strain that has affected several of the city's aging gaming properties over the past decade.
Guests booking rooms or visiting the Showboat's parking garage and arcade should expect operations to continue while the court considers the case. The property will not change hands immediately even if foreclosure proceedings are authorized.
The takeaway
Large casino properties carry substantial debt risk when renovation commitments and lender terms are not met, and the outcome of this case will show how Atlantic City's courts handle such disputes.
What happens next
A judge will hear arguments on the foreclosure case on Friday, which will determine whether the court moves forward with a potential sheriff's sale.
Further reading
Explore more coverage of Casino developments in Atlantic City.
Source note: This article includes information reported by Press of Atlantic City.
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