The sale is being forced by the pending $9-billion acquisition of Caesars by rival gaming giant Harrah's Entertainment. Under New Jersey casino law, no company or individual can control a portion of the market here so as to eliminate competition. At one time, the maximum number of casino/hotel properties one could own was three, but a decade ago that specific number was eliminated and regulators were given a freer hand to determine competitive impact.

The pending Harrah's/Caesar's merger would have put five of this city's 12 casino/hotel properties in the hands of one company. Besides the 804-room Hilton, which will retain its name after the sale closes, Caesars owns Caesars Atlantic City and Bally's Atlantic City. Harrah's owns Harrah's and the Showboat here. The Casino Control Commission is still to determine if Caesars/Harrah's ownership of four of the 12 casino/hotel properties is still anti-competition, and has scheduled two days of hearings in late May to discuss the issue.

The pending acquisition marks the second here by the Beverly Hills, CA-based Colony Capital, which bought Resorts Atlantic City four years ago. It's also part of a larger $1.3-billion deal in which Colony Capital is buying three casino properties in Indiana and Mississippi from Harrah's.