A group has scrapped a plan to build a smaller "boutique" casino that would have been run by the Seminole Indians through their Hard Rock franchise on the Atlantic City Boardwalk.

Hard Rock in Atlantic City

AC Gateway LLC tells The Associated Press it is not proceeding with a casino-hotel that could have included a musical history museum with items from when the Beatles and Rolling Stones separately played Atlantic City.

The developers had until Wednesday to file plans and pay a $1 million deposit with the state. The first phase of the 208-room project would have cost $465 million.

New Jersey created a pilot program last year to allow smaller, cheaper casino hotels to be built and help jump-start the struggling market. But none have.

The Hard Rock planned to include a museum as part of the 208 room casino which would eventually expand to 580 rooms. They planned to make more use of the beach than any casino ever has in Atlantic City: a pool, a cafe for afternoon barbeques and an outdoor entertainment area that could host concerts.

(Copyright 2012 by The Associated Press.  All Rights Reserved.)

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