New Casino Bankruptcy in NJ, Revenue Down 40%


New Casino bankruptcy in NJ: Revel casino’s gross revenue for April showed a decline of 40 percent from its opening month, April 2012. The New Jersey casino announced in March it’s plan to file for bankruptcy, while remaining open.

Revel’s gross revenue for April 2013 was about $8 million, down from about $13.5 in April 2012, according to figures released May 10 by the N.J. Division of Gaming Enforcement. 

The casino announced on March 25 that it would reduce its debt by $1 billion by filing for bankruptcy.

“Revel has secured votes from a supermajority of its lenders, which is in excess of the amount required for the court to approve the plan,” reported the company. It hoped to reduce its debt from $1.52 billion to $272 million, while continuing regular operations.

The Division of Gaming Enforcement showed a total decline in gross revenue in the state’s 12 casinos of about 22 percent—from about $260 million last April to about $228.5 million this April.

Jeffrey Hartmann, Revel’s interim CEO, told the Clarion Ledger on May 10: “Although our April gaming revenues were disappointing, we are launching new initiatives that will drive future growth and re-introducing Revel to the gaming public over the next couple of months.”

He highlighted the new Pearl Lounge as an example of Revel’s new amenities. The lounge is for members only, and is meant to increase loyalty among existing guests and attract new guests.

Only Caesar’s Atlantic and the Atlantic Club casinos saw a greater gross revenue in April 2013 than in April 2012. Caesar’s Atlantic took in about $29 million in 2013, a 5 percent increase from about $27.5 million in April 2012. The Atlantic Club had a gross revenue of $11.3 million in April 2013, 27 percent greater than its April 2012 gross revenue of $8.3 million.

Tags:

  • http://www.facebook.com/nortongaming Steven Norton

    Revel’s problems are many, some related to their operating philosophy, but
    most to new regional competition, in PA, NY and now MD. Atlantic City casino
    revenues in 2012 (after removing free play) are down 50% since slots were
    allowed in Pennsylvania in 2007, in spite of new capacity added in April with
    Revel’s opening. Revel’s own issues start with a poor location at the wrong end
    of the Boardwalk, a no smoking policy, high room rates and restaurant pricing
    and a general anti casino positioning. They were also harmed by the initial loss
    of a 1,900 room tower and another 600 rooms that were not finished, bringing
    their room count down from 3,800 to only 1,300, and affecting their original
    marketing direction, aimed at the convention trades. And recent
    negative publicity, surrounding the bankruptcy, pricing and gaming strategy
    hasn’t helped. Let’s hope that the new direction after emerging from
    reorganization will change their public perception and bring new walk in
    visitors, that are so important to all AC resorts.

    • http://www.facebook.com/profile.php?id=100001312908809 Jeff Bailey

      Nice comment Steve, thanks for the details, makes sense why their down with the issues you outlined.

  • http://www.facebook.com/profile.php?id=1250357009 Ned Johnson

    Damn why can’t these gamblers lose money faster? I don’t go to casinos anymore. The only one who wins is the casino owners.

  • http://www.facebook.com/profile.php?id=1250357009 Ned Johnson

    I’ll bet you they don’t get a penny from me! Who goes to NJ to gamble?

  • http://www.facebook.com/profile.php?id=100001312908809 Jeff Bailey

    It’s in Jersey what did you expect.


Top