Revel Casino Files for Bankruptcy
Atlantic City is home to some of the world’s most beautiful casinos. One such architectural marvel and entertainment paradise is the famed Revel Casino. This mega-complex opened its doors to the public in April 2012. It cost a staggering $2.6 billion to construct, and is officially the second tallest building in the state of New Jersey. However, by March 2013, this casino complex had to file for bankruptcy.
Second Bankruptcy Filing
Atlantic City’s Revel Casino Hotel is a sight to behold; a spiraling tower, thousands of slot machines, hundreds of tables and plenty of parking for gamblers. The problem this beautiful casino is facing is that the parking bays are empty and demand for land-based casino entertainment is low. The bankruptcy filing is the second such filing within two years. This casino published a $21.7 million operating loss during Q1 of 2014.
The Revel Casino informed its employees that it would be closing its doors this summer if a buyer was not found. A report by journalists in November 2013 indicated that Atlantic City casino revenues have shrunk by over 40% since 2007. Among the many factors cited for plunging revenues are the US economic slowdown, plenty of regional competition and the devastating effects of Hurricane Sandy. During the winter of 2013, the Atlantic City Hilton also filed for bankruptcy.
Massive Investment Turns Sour
The state of New Jersey invested a massive $260 million to revive the Revel Casino in 2011. In fact, investment giant Morgan Stanley also dropped $1.25 billion into this casino complex. The Revel Casino has been deemed one of the most ambitious projects in the history of Atlantic City. It was seen as a sure-fire away to spruce up the city and make it the go-to destination for casino players. As yet, it is failed to turn a profit and remains firmly at the bottom of the barrel in terms of revenue generation in the city.
Within 11 months, the Revel Casino and Hotel had filed for Chapter 11 bankruptcy. The parking bays are empty; Morgan Stanley reported a $932 million loss in 2010; and the Casino lost in excess of $70 million during Q1 and Q2 of 2012. The Revel Casino has been plagued by all manner of tragedy, including lightning strikes and work-related accidents. On 12 September 2012, a casino patron was critically injured when he fell from an escalator to the floor – over 40 feet below. Negatives aside, it is quite possibly one of the most visually stunning casinos in the world, with top-two clubs, fantastic decor and luxury par excellence. Starscasino.co.uk will bring you more on this story as it happens.
