Revel Atlantic City Casino files for bankruptcy again. This will be the casino’s second time filing for bankruptcy protection. The $2.4 billion hotel opened just two years ago and has now filed for protection from creditors in court. The owner has officially put the hotel up for auction as of this past Thursday.
Revel Entertainment Group, owner of the casino, got a $125 million loan to have the casino remain open to the public while the company attempts to find a new owner to take over. However, although there are plans to keep it open in the hopes of continuing the business, employees of Revel have been notified that if the property is not sold the casino may close down as early as Aug. 18, 2014.
News of Revel potentially shutting down is especially devastating to the New Jersey gambling industry’s five-year plan set by Chris Christie. $260 million were invested in 2011 by New Jersey in order to continue construction for the casino. Revel is looking for a new owner who can increase the financial stability as well as give guests a wonderful experience while on their stay at Revel.
There is still the possibility that Revel Atlantic City Casino could once again file for bankruptcy protection in two years. Revel Atlantic City entertainment has lost more than $260 million since the opening of the casino. Revel’s 57-story-high building makes it the tallest structure in Atlantic City and the second tallest building in New Jersey. Its unique structure makes it the only casino in Atlantic City where residents’ hotel room windows face the beach. The elaborate design and style of this building were originally assumed to be very popular, but with competition for the gambling industry now coming from places like Maryland and New York which have opened slots and casinos as well, the Revel casino in Atlantic City unfortunately never made it as big as it was presumed to and has filed for its second bankruptcy protection.
The neighboring states’ competition has impacted Atlantic City’s gambling industry so much that revenues dropped to $3 billion which is down 41 percent from its 2006 revenue of $5.2 billion. Revel casino has lost $75 million just this year alone, a huge loss for the company. The summer months have proven no better for Revel as it loses approximately $2 million per week. Currently Revel is relying heavily on borrowed funds to make its necessary payments.
It was hoped that Revel Casino would bring a touch of Vegas in Atlantic City. The casino is unlike any other in New Jersey’s gambling city, and if no bidders come out with offers to buy this casino it will be shut down. Aside from the newly opened neighboring gambling locations in nearby states, Revel Casino has lost its 40 percent revenue dip also due to Hurricane Sandy. This natural disaster caused immense devastation to Atlantic City, and not just Revel. The Atlantic City Hilton, which was close to Revel Casino, also filed for bankruptcy protection this past winter.
Unfortunately, Revel Atlantic City casino has filed for bankruptcy again. This will be Revel’s second time filing for bankruptcy protection and it is not looking good for this casino. With revenue significantly lower than past years and no bidders coming out yet, it looks like the future of this casino may come to an abrupt halt.
By Amena S. Chaudhri