Casino Reinvestment Development Authority (CRDA) for the state of New Jersey approved plans this week to redevelop a former casino into a major entertainment complex.

Local media sources report that The Atlantic Club Casino Hotel, based in Atlantic City, will be transformed into a family-oriented consumer hub compete with an 81,000 square-foot water park and 800 hotel rooms.

Proposed by the Endeavour Property Group and set to be designed by SOSH Architects, the final site plan for the project was approved by the CRDA on Monday.

The group’s plans also provide for the creation of a 58,000 square-foot family entertainment centre, and the cost of the project could rise to $165m according to The Press of Atlantic City.

Executive Director of the CRDA, John Palmieri, said the project is “perfectly consistent with a master plan that we adopted".

He added that the CRDA supports “all these kinds of activities that promote entertainment, non-gaming amenities and tourism related improvements”.

The Atlantic Club was the first of four of the city’s 12 casinos to close its doors in 2014.