New casinos are popping up in Atlantic City with more and more frequency as of late. Of these new casinos, The Revel Casino and Hotel opened up only 5 months ago. The $2.4 billion “Vegas Style” venue was heralded as the future of Atlantic City by Governor Christie. The same governor also allocated over $300 million in funds to help the casino get under way.
After 5 months and some tough times, the Revel Casino is now asking to borrow $100 million just to stay open. The Revel needs $30 million a month just to cover operating costs and hasn’t come close to making that amount since opening. Even during peak summer months for Atlantic City Casinos, The Revel only managed to create $17 million a month. Compare this to other casinos in Atlantic City such as The Borgota which makes on average of $50 million a month.
The Revel Casino has ranked 8th among the twelve casinos in Atlantic City as far as revenue goes. And the casinos that are in this part of the income bracket have much lower debt and are much smaller.
Revel already has a line of revolving credit set up with various banks and is expected to receive more money for the state. As much as $70 million is expected to fall into the hands of The Revel at the expense of the tax payers. However, with so much money already invested, it’s a must to keep the casino afloat.
A spokesman for Revel Casino had this to say about the situation: -“We appreciate the support of our investors.Upon completion of this facility, we will have significant liquidity cushion through 2013 and beyond.”-
It will be interesting to see if The Revel Casino will start to see some gains in revenue in the coming months. It will be even more interesting to see how much more money the state of New Jersey and investors are willing to pump into the company if it doesn’t go right. It could be a devastating blow to the Gov. Christie’s reputation as he has so much into this.