Local Expert Weighs In On Revel Casino Financial Problems
By David Madden
ATLANTIC CITY, N.J. (CBS) – Atlantic City's 12th casino still has that fresh, new building smell to it, but Revel has had a hard time meeting even early financial projections, leading some to suggest the $2 billion resort could soon wind up in bankruptcy court.
The banks have had to come to Revel's rescue twice since their opening last April. Investors aren't about to just walk away, after all.
But the casino ranks near the bottom on the revenue front and hotel business has been far from brisk. Blame part of that on the economy and the hurricane didn't help either.
Roger Gros with Global Gaming Business magazine believes push will come to shove sometime this year.
"I think, at some point, you're going to see them do some sort of bankruptcy refinancing that will kind of make it easier for them to make it on a long term basis," says Gros.
He does not expect Revel to shut down particularly this early in the game and, in fact, given more aggressive marketing, he believes more regular gamblers might give the new place a try in the new year.
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