New Casino Bankruptcy in NJ, Revenue Down 40%

New Casino Bankruptcy in NJ, Revenue Down 40%
A file photo of people playing slot machines at a casino in Atlantic City, New Jersey, on Aug. 17, 2010. Overall, New Jersey's 12 casinos reported a decline in gross profits for April 2013 over April 2012 figures, with the new Revel casino reporting a 40 percent decline. (Abdullah Pope/AFP/Getty Images)
Tara MacIsaac

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.