Photo: Wikimedia Commons
The Revel Casino opened in early April to great fanfare. The $2.6 billion dollar resort, backed with a $261 million tax credit by Governor Chris Christie, was supposed to help revitalize Atlantic City by providing appealing alternatives to non-gaming visitors.Suzette Parmley of the Philadelphia Inquirer reports that just a few months later, the casino is falling well short of its revenue targets.
The casino booked $17.5 million in gaming revenue in July. According to the Inquirer report, Revel needs around $25-30 million just to pay its bonds and remain solvent.
From the Inquirer:
To put it in context, market leading Borgata generated $54 million last month – triple Revel’s figure. Borgata opened at a cost of $1.1 billion in the city’s Marina District in July 2003.
“With the number less than $20 million, I would say unless Revel can dramatically increase their gaming revenue, it will be hard for them to generate free cash flow and therefore, make their debt service payments,” said Andrew Zarnett of Deutsche Bank AG. “More revenue generation is needed, and time is running out as summer is nearly over.”
It’s looking like quite a boondoggle.
Read the full story here