Atlantic City has had a hard go at it these past few months. Hurricane Sandy hit the boardwalk at the end of October forcing a five-day shutdown and today, another big blow to the economy: Revel resort is filing for Chapter 11 bankruptcy.
After just months of being open (they officially welcomed their first guest on April 2, 2012), the resort isn’t attracting the upscale clientele it had hoped to. With over 1,800 rooms and high-end accommodations like Iron Chef-manned restaurants (and no classic casino buffets), the resort was aiming to bring fresh faces and full pockets to the gaming industry in Atlantic City. Now, in an effort to reboot, the bankruptcy protection will “wipe away about two-thirds of [Revel’s] $1.5 billion in debt by converting more than $1 billion of it into equity for lenders,” USA TODAY reported. Supporters of Revel’s second attempt to revitalize the boardwalk say that they’re still optimistic that the resort will turn around.
In 2012, Revel was the first new casino to Atlantic City since 2003. Governor Chris Christie gambled on the resort in hopes that it would bring profit to the declining gambling revenue in the state. Bloomberg reported, New Jersey “saw its total gambling revenue fall 8 percent to $3 billion in 2012, the sixth year of declines.”
Do you think Revel will be able to make a comeback? Sound off in the comments.
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