Post-bankruptcy Atlantic City revelry is making progress
If you were planning for the worst possible year for a brand new casino, it would probably be similar to what happened to Revel Casino over the past 12 months. The Atlantic City casino opened in April 2012 and has had few problems since.
High cost, low income
First, Revel is expensive, with the casino and hotel complex at the north end of the Atlantic City Boardwalk costing $2.4 billion to build. However, it soon became apparent that the complex fell short of expectations as it failed to attract locals or tourists. From the month it opened, Revel ranked last among Atlantic City's 12 casinos in gaming revenue, and things never improved. From its opening date through March 2013, Revel reported an operating loss of $149 million.
Coupled with the high construction costs, it was simply unaffordable for Revell. When the casino filed for bankruptcy in February, its outstanding debt was $1.5 billion.
advance payment
The casino's bankruptcy has now been officially approved, with the filing helping Revel pay off much of its debt. In return for $1.2 billion in debt relief, the lenders received an 82% stake in the casino, making Revelers' future debt of $272 million more manageable.
"With a balanced balance sheet, reduced debt load and improved cash flow, we emerge from this process stronger and well positioned for success," said Dennis Stogsdill, Revel's chief restructuring officer. Better prepared.”
Revel's philosophy is to focus on resorts, with the casino being just one of many attractions and facilities offered to high-end customers looking for a total leisure experience. This has resulted in casinos becoming more of an afterthought for the company, something executives say will change in the future.
However, no one expected a miracle from the start. Even the company's own forecasts suggest that Carnival won't be consistently profitable until next summer, and the resort's losses this year are expected to far exceed Carnival's forecasts, making those numbers questionable.
Read also:
- MGM Resorts to sell $750 million in debt to pay off debt issuance in 2025
- Australian gambling industry calls for ban on live betting
- Max “altiFC” Altergott wins Monaco Super High Roller Championship
- Macau hacker arrested for high-value theft
Source: www.casino.org
