At a cost of 2.4 billion dollars the Revel entertainment resort will be a luxury venue and the Revel Group’s hope is that it will bring in a new younger clientele attracted not only by the casino but also by the fine dining, shopping and entertainment available in the resort. There has been a decline in gaming revenue and also in the number of gaming clients in Atlantic City’s casinos in recent years. The economic situation is to blame in part for this but also the surrounding states have recently relaxed their gaming laws and new casinos have been opened and so they drain the original Atlantic casino clientele. So Revel’s hope to attract a new type of clientele from May or June 2012 may prove to be of benefit also to other Atlantic City casinos.
With the proposed opening of the Revel Entertainment group’s hotel-casino resort in Atlantic City in the early summer of 2012 the hope is that it will revitalise the casino industry in the city which has been in decline in recent years. On the other hand there is concern that the new casino resort will draw business away from the other established casinos who are suffering from a decrease in income.
In general gambling income in Atlantic City has decreased by about 2 billion dollars over the past 5 years and in 2011 it stood at 3.1 billion dollars.The Revel resort is the Revel Company’s first project and it was feared at one point that the entertainment complex would not be completed. The 6.2 million square foot, beach front resort which is on the Boardwalk in Atlantic City will have 2 night clubs, a club open during the day, 6 swimming pools, 12 restaurants, many shops, 3 theatres and conference and meeting rooms. The resort will incorporate a hotel, casino and a spa. The casino floor will be the third largest in Atlantic City. It will be the first new Atlantic City casino since the Borgata opened in 2003.The casino resort faced major financial problems when in 2010 the major stake holder in the Revel Group, Morgan Stanley sold its holding and walked away having made a loss on its investment. Construction work stopped until in 2011 the Governor of New Jersey, Chris Christie, signed updated casino laws and also announced that the State of New Jersey would invest in the project in the form of tax rebates. These tax rebates of 261 million dollars over 20 years meant that it was possible for the Revel group to find new investors and so construction recommenced. The surrounding area near the entertainment resort would benefit also from the state investment in the Revel resort.