ATLANTIC CITY, N.J. (AP) — New Jersey is moving forward with its plan to allow smaller casinos in Atlantic City.

The state legislature is watering down the requirements of a 2011 law designed to attract developers willing to build new, smaller and less costly casinos with as few as 200 hotel rooms.

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A bill that has passed Assembly and Senate committees removes the requirement that one of the two projects eventually expand to 500 rooms.

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It also removes a requirement that they be new construction. The new bill would let casinos be established in existing buildings.

No one has built one of the new casinos since Gov. Chris Christie signed the bill in January 2011.

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Curtis Bashaw, owner of the Chelsea hotel, says he’s interested in his facility becoming a boutique casino.

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