Atlantic City's Revel Casino Could Close This SummerCasino Looking For A Buyer, But It's Possible No One Bites |
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The most expensive casino to ever be built in Atlantic City could close its door for good this summer if a buyer isn’t found, the Associated Press reported.
A sum of $2.4 billion is being sought for the property.
According to the report, the casino could fetch as little as $25 million, if it were to go to a bankruptcy auction. The casino filed for bankruptcy before.
The previous bankruptcy filing wiped away $1.2 billion of its $1.5 billion in debt. As a result, lenders were issued an 82-percent ownership stake in the property.
The casino has posted a more than $260 million operating loss since it opened in 2012.
Revel ran into trouble before even opening, taking six years to complete and requiring an additional $1.1 billion investment in 2011, along with state help. Ultimately, it cost $2.4 billion to construct.
Building the casino was a bold move, as gaming revenues in Atlantic City have been slumping since 2006. However, many couldn’t predict the Great Recession that struck in 2008.
If Revel closes, it will be the second casino this year to do so. In January, the Atlantic Club Casino Hotel stopped taking bets. It was recently acquired by a Florida real-estate firm for just $13.5 million and won’t re-open with gambling. In 2005, the Atlantic Club was sold for $500 million.
Earlier this year, Caesars Entertainment, which owns four properties in Atlantic City, said that it wouldn’t rule out closing one of its brick-and-mortar casinos there.
Atlantic City currently has 11 casinos.
Garden State politicians allowed state gaming firms to offering Internet gambling in an effort to shore up revenues and prevent closings. Online gambling revenues haven’t met expectations thus far, and thus haven’t, at least not yet, been a savior.
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