Revel Casino Losing $1 Million a Week While Closing
Posted on: August 22, 2014, 06:32h.
Last updated on: August 21, 2014, 12:46h.
The Revel Casino Hotel in Atlantic City is still up for sale in bankruptcy court, and the owners would love to find a buyer.
But in the meantime, they’re losing more money each week than many people will make from decades of work, giving them good reason for wanting to close the venue as quickly as possible.
In a bankruptcy court hearing held Monday, Revel attorney John Cunningham revealed that the resort is currently losing more than $1 million each week, making it imperative for the owners that they shut the facility down as quickly as possible.
The hope is that a buyer will rescue the casino at some point, but Cunningham pointed out that it might take time before someone is willing to step in.
“Our earnest hope is that we will have a successful auction,” Cunningham said. “It may be [that] some of the dust has to settle from the shutdown.”
Shutdown Set for September 2
Revel has also let gamblers know about the shutdown in an effort to give players plenty of time to redeem chips, rewards points and other products before the casino closes
Originally, an auction was scheduled to be held last week, but that event was cancelled. The hearing this week was supposed to be a chance for US Bankruptcy Judge Gloria Burns to approve a sale of the Revel, but the judge has set a new hearing for September 2 in order to make that approval if a qualified buyer comes forward.
The closure of the Revel is scheduled for September 1 and 2, and has come as a shock to many in the Atlantic City community. The judge herself said that she was “heartsick” that the casino couldn’t find a buyer. The Revel, which cost $2.4 billion to complete, has only been open for a little over two years.
That has left some wondering if everything possible is being done to sell the attractive property.
“If there’s only two casinos left in Atlantic City, this should be one of them,” said attorney Warren Martin, who is representing restaurants that operate inside the casino complex. Should the hotel and casino close, about 3,100 people will be put out of work.
Revel Pushed for Earlier Closure
Originally, Revel Entertainment wanted to close their struggling property even earlier. In their original request to the state, the Revel sought permission to close its doors on August 18. However, the Division of Gaming Enforcement said that it would take up to 30 days for the Revel to complete an orderly shutdown of their facilities.
Originally, the Revel and lender Wells Fargo were only willing to keep the casino open for one extra day, but negotiations eventually pushed that back to closing the hotel on September 1 and the casino on September 2.
Revel has also let gamblers know about the shutdown in an effort to give players plenty of time to redeem chips, rewards points and other products before the casino closes. Players also have under September 15 in order to redeem these assets at the general cashier office for the resort.
If players do not cash in by then, they’ll have to file a proof of claim in a New Jersey bankruptcy court.
The Revel is one of three casinos set to close over the next month, with both The Showboat and Trump Plaza also due to close by September 16. These join the Atlantic Club, which closed in January, to make for four casino closures in Atlantic City this year.
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