Gambling Business: Revel Casino Bankruptcy ApprovedProperty Will Emerge Very Soon From Bankruptcy Court |
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Revel casino, arguably Atlantic City’s most disappointing gambling joint ever, will soon emerge from bankruptcy with hopes of turning things around.
CBS reported that a bankruptcy court judge in New Jersey has approved Revel’s Chapter 11 restructuring plan. The move wipe out most of the casino’s debt and provide new operating funds. Revel will give an 82-percent ownership stake to new investors in return for canceling a massive $1.2 billion in debt.
The property ran into financial issues before even getting built. It took six years to complete and required an additional $1.1 billion investment in 2011, along with state help.
In its first full month of operation in April, Revel generated a disappointing $13.4 million. In May, that number increased only slightly to $13.9 million, ranking it eighth among the city’s 12 casinos. It was the most expensive casino ever built in Atlantic City.
The failures of Revel, and those of Atlantic City as a whole, could be helped by online gaming coming to the Garden State. Gov. Chris Christie, who backed the construction of Revel, made a favorable decision on an Internet betting bill earlier this year.
Revel had banned smoking, but will ditch this rule in hopes of it helping business pick up going forward. Its day-to-day operations haven’t been affected by the bankruptcy.
For more news from New Jersey, check out its state page.
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