The much anticipated Revel casino located in Atlantic City was thought to bring a rejuvenated sense to the boardwalk. However, several road blocks interfered with construction, challenging the future of profits from the very beginning.
Off To A Rough Start
Opened in April 2012, Revel was the first new-build casino since 2003. Designed as a resort to boast oceanfront views, luxury dining and entertainment, along with first class gaming, Revel was claimed to be one of the hottest new casinos in the country.
During construction, the project ran into major challenges that would have a lasting impact on the profitability of the casino. Three of the key executives in charge of the project lost their lives in a plane crash in July 2008, and a concrete worker was struck by lightning and killed in 2011. Both of these tragedies combined with other construction issues cost the project fund money, leading to an overall $1.2 billion loss by the completion.
Since opening its doors, Revel has taken a huge hit to return from customers. Posting close to $35 million in losses during two quarters last year, the company has decided to enter Chapter 11 protection. Company executives are hoping to restructure its $1.5 billion in debt by converting it into $1 billion of equity for lenders. Revel’s CEO, Kevin DeSanctis, is optimistic for the future saying, “Today’s announcement is a positive step for Revel.”