Caesars ultimately decided not to pursue the purchase. Due to a non-compete clause in their buyout, Caesars was granted a four-week window to negotiate their own purchase of the Dunes, which they considered as an opportunity to reach the "tour and travel" segment of visitors, in contrast with Caesars Palace's more affluent customer base. Shortly after Clifford's departure from Caesars Palace, he and Stuart agreed to buy the Dunes hotel, across the street. Clifford remained as chairman of the Las Vegas property until 1982, when he accepted the NJCCC's demand that he step down there as well. Analysts speculated that the company might sell the Atlantic City property, but ultimately, Caesars World itself agreed to buy out the Perlmans' 18 percent stake for $98 million in 1980. They negotiated to sell their interest in the company to television producers Norman Lear and Bud Yorkin, but quit the talks without reaching a deal. The brothers were forced to take a leave of absence, or face a shutdown of the casino.
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When the New Jersey Casino Control Commission (NJCCC) completed its full review of the Perlmans' applications, however, their permanent gaming licenses were denied, due to their dealings with Malnik and Cohen. Caesars Boardwalk Regency, the city's second casino, opened in 1979, under a temporary license. Īfter the 1976 legalization of gambling in Atlantic City, Caesars had bought a Howard Johnson's hotel on the Boardwalk and spent $70 million renovating it. The association with Malnik earned Caesars three warnings from the Nevada Gaming Commission, and would continue to haunt the brothers. Caesars bought 400 acres of undeveloped land in North Miami Beach from Malnik and his partner, Sam Cohen, and later made a sale and leaseback of two of the company's Poconos resorts to Malnik and Cohen's sons, funded by a loan from a Teamsters pension fund.
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In the early 1970s, the company had entered into a series of deals with Miami lawyer Alvin Malnik, who was identified by federal law enforcement officials as a close associate of mobster Meyer Lansky. Caesars agreed to spend $40 million to complete construction of the hotel portion of the year-old property, which was renamed as Caesars Tahoe Palace, and later simply Caesars Tahoe.Ītlantic City and ouster of the Perlmans Ĭaesars expanded to northern Nevada in 1979, taking over operations of the Park Tahoe casino in Stateline, on the south shore of Lake Tahoe, under a lease agreement with Park Cattle Corp. By 1983, the subsidiary was losing money, and Caesars sold it to Visual Technology (Tewkesbury, MA), a maker of computer terminals, for a $9.5 million convertible note. Caesars had increased its stake to 100 percent by 1980, when it sold 9 percent of Ontel to AEG-Telefunken for $3.5 million. The firm returned to the computer industry in 1976, buying 80 percent of Ontel Corporation (Woodbury, NY), a maker of all-in-one PCs. Ĭaesars extended its presence in the Poconos, buying the Paradise Stream Resort in 1973, the Pocono Palace in 1976, and Brookdale-on-the-Lake in 1983, which it renamed as Caesars Brookdale. The company moved its headquarters from Miami in 1973 to be closer to Caesars Palace, but chose Century City in Los Angeles over Las Vegas, because of its proximity to financial centers. A $150-million, 2,000-room resort called the Mark Anthony was planned for the site, but Caesars was unable to find financing, and sold the property four years later for $9 million to a group led by banker E. In 1972, Caesars World bought the Thunderbird casino, up the Strip from Caesars Palace, from Del Webb Corporation for $13.6 million. Caesars sold part of its stake to Brother Industries in 1974 for $3 million, and then sold its remaining shares in a public offering for $3.5 million. In 1971, the company made a foray into the technology sector, buying 21 percent of Centronics, a maker of printers and gaming control systems, from co-founder Samuel Lang for $1.7 million. Brown, owner of Kentucky Fried Chicken, for $4 million, and changed its name to Caesars World. Shifting its focus to the Las Vegas property, the company in 1971 sold 350 restaurants, nearly the entire chain, to John Y. They capped it off with Caesars Palace, bought in 1969 for $58 million. In the late 1960s, Lum's went on a buying spree, acquiring a meat packer, a chain of army-navy stores, and the Cove Haven honeymoon resort in the Poconos. In partnership with Ken Chivers, they began offering franchises in 1965, growing from 15 restaurants to 90 within a few months. They expanded to more locations, and took the company public in 1961. In 1956, brothers Stuart and Clifford Perlman bought a hot dog stand in Miami Beach named Lums. A Lum's restaurant in Fort Lauderdale, Florida in 1966