Hard Times for Atlantic City CasinoFebruary 19, 2015
With Atlantic City itself being on the verge of total collapse and bankruptcy, Revel Casino has stumbled upon more trouble in their bit to sell off their assets.
The newest casino which cost $2 Billion to develop and opened up to great reviews in 2012 has shut their doors back in September of 2014. It was a visually impressive project that resembled the lavish hotels of Las Vegas and brought a face lift to the Atlantic City scene, however it could not provide itself with enough revenue to withstand the reality of the Jersey State gambling haven which has been struggling for years.
June marked the second time when the casino group attempted to get Chapter 11 bankruptcy protection and it now joins Trump Entertainment Resorts along with Caesars Entertainment Operating company in court going through bankruptcy proceedings.
At one point there was a glimmer of light for Revel, when real estate developer Glenn Straub put an offer to buy the property and both parties reached an agreed upon price of $94.5 million for the sale. However after being unable to complete the deal by the 9th of February deadline given by the court, that is now also a big uncertainty. A judge is set to make a ruling later today if the sale is officially off the table in which case Revel will at least get to hold on to a $10 million deposit already paid by Straub.
Overall Atlantic City has been in a free fall for a long time, with experts estimating a 48% gambling revenue drop since 2006. With such results and an undefined future for this city it only makes it more difficult for struggling casinos to get their head above the water. More will be coming as this story develops and the changes that take shape in Jersey all together.