Obituaries : Stuart Perlman; Turned Hot Dog Restaurants Into Resort Chain

Stuart Perlman, who with his brother parlayed a hot dog restaurant and some borrowed money into the premier resorts that became Caesars World, died Monday in Miami.

Authorities said that Perlman, 60, died in a doctor’s office during a visit to the physician. Perlman had been undergoing regular treatments for a heart condition, authorities said.

Perlman and his brother, Clifford, purchased Caesars in September, 1969, for $58 million. They sold their interest in the company in 1981 for $98.2 million after being refused a license by the New Jersey Casino Control Commission, which objected to their alleged connection to known mobsters.

The two brothers made their fortune in the restaurant business, borrowing $6,000 in 1956 to start a hot dog restaurant in Miami called Lum’s. By 1969, the company had grown to 379 restaurants.

Acquired Hotel

In 1971, the Perlmans formed Caesars World Inc. The next year, they acquired the old Thunderbird Hotel and in 1979 the corporation leased the Park Tahoe hotel-casino, now known as Caesars-Tahoe.

After gaming was legalized in Atlantic City in 1976, the Perlmans tried to open Caesars Boardwalk Regency Casino. They were given a temporary license by the New Jersey commission in June of 1979. Their request for a permanent license was denied in October, 1980.

The commission cited the brothers’ contacts with Miami businessmen Alvin Malnik and Samuel Cohen, who had been linked to Meyer Lansky, the late organized crime figure.