NJ Lowers Room Requirement For Atlantic City Casino-Hotels

ATLANTIC CITY, NJ (CBS) -- Two smaller, "boutique" casinos could be rolling soon in Atlantic City, thanks to a new law Governor Christie has signed that lowers the number of hotel rooms required to build them.

The legislation opens the door for two planned casino hotels to have 200 rooms, rather than the current 500-room minimum.  (Several of the other established casino hotels in Atlantic City have between 1,200 and 2,000 rooms.)

The Hard Rock Café wants to build a $300-million boutique casino-hotel on the boardwalk.

Also, the legislature is working on measures to ease some of New Jersey's strict casino regulations, as well as setting up a state-run tourism district in Atlantic City.

New Jersey state senator Jim Whelan, a former mayor of Atlantic City, says "That package of bills sends a strong message to the investment community that New Jersey is serious about attracting investment dollars and making Atlantic City work to its full potential."

Some critics oppose casino deregulation, fearing it could lead to corruption and other problems in the gambling industry.

Reported by Steve Tawa, KYW Newsradio 1060.