Atlantic City’s Revel Casino to File for Bankruptcy Protection

Atlantic City’s Revel Casino to File for Bankruptcy ProtectionWhen Revel Casino finally opened in the spring of 2012 it had been hoped that it would reverse the fortunes of the Atlantic City casino industry. As the city’s twelfth casino and the first new casino to be built there since 2003 there were great hopes that the Revel resort would bring players into New Jersey’s casinos. However this has not been the case and Atlantic City has lost its second place in the United States gambling market after Las Vegas. Pennsylvania is now in second place. The land based casinos in Atlantic City have also been facing competition from online casinos.The Revel casino resort has had an eventful history and was almost not built. The economic situation affected finance for the resort and the whole project was postponed. Then in 2008, senior managers involved in the project were killed in a plane crash. The construction eventually got under way when the casino resort was granted state tax incentives in 2011. The Revel casino opened in May 2012. The almost 2000 room hotel was completed later in 2012. The casino has close to 2 500 slot machines and offers many casino games including roulette, baccarat, craps and blackjack. It also has a poker room and the resort offers customers entertainment in theatres, restaurants and night clubs and also includes retail outlets and swimming pools.There has been a general decrease in the gambling market in New Jersey and Revel did not manage to buck this trend. Instead it is now seeking bankruptcy protection to allow it to restructure financially. The company behind the Revel resort decided that applying for Chapter 11 bankruptcy protection would allow Revel to develop and also clear a large part of its 1.5 billion dollar debt. It is hoped that the restructuring will be in place by the summer and also that there will be no job losses. Revel provides employment for 2000 workers. In the first six months of operation in 2012 Revel made a net loss of almost 170 million dollars and in January 2013 the casino was eleventh out of twelve Atlantic City casinos for revenue from gambling. However the casino is looking on the bankruptcy filing as the beginning of a new era for Revel rather than its end.

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