​New Casino Bankruptcy Court Approves Protection

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May 13, 2013
Follow: Atlantic City, Bankruptcy, Casino, New, New Casino Bankruptcy, Revel

New Casino in Atlantic City is about to enter bankruptcy protection just over a year after opening because the their earnings have dropped 40 percent and business is only getting worse.

New Casino Bankruptcy

Revel took in just over $8 million last month, down from the $13.4 million it won in what was widely considered a disappointing opening month in April 2012.

Atlantic City’s casino market as a whole saw its gambling revenue decline by 12.1 percent last month compared with a year ago.

Figures released Friday by the state Division of Gaming Enforcement show the 12 gambling halls took in $228.5 million.

Revenue from table games was $66.8 million, down 6 percent from April 2012. Slot machine revenue was $161.7 million, a 14.4 percent decrease due in part to the impact of a nearly 16 percent reduction in the amount of promotional credits that were wagered compared with the same month last year.

But Revel’s revenue was clearly the biggest red flag in the monthly report, particularly as the $2.4 billion resort retools its operations and slashes its debt by turning over an 82 percent ownership stake to lenders.

“Although our April gaming revenues were disappointing, we are launching new initiatives that will drive future growth and re-introducing Revel to the gaming public over the next couple of months,” Jeffrey Hartmann, Revel’s interim CEO, said Friday. “Tonight we are opening our new Pearl Lounge, an exclusive members-only lounge for Pearl Card holders, that will promote increased loyalty among our existing guests and attract new slot players to Revel. This is the first of many new amenities and investments being made at Revel as we seek to broaden our appeal across a variety of demographics and gaming preferences.”

Only Caesars Atlantic City (up 5.9 percent to $29.1 million) and The Atlantic Club Casino Hotel (up nearly 37 percent to $11.3 million) reported revenue increases in April.