Revel Casino closing was never in the minds of its developers as it began construction just before the Great Recession. It unfortunately ran out of money halfway through construction therefore having no choice but to drop plans for a second hotel tower. According to the Daily Mail, during that time, the company had also been rushing with the remaining $1 billion or so it for the project to finish.
Because of the difficulties it faced during construction, when it opened, it had so much debt that it wasn't capable of returning profit any longer, reports the AP.
The few gamblers that it had also couldn't keep Revel alive.
During its two years of operation, Revel was so deep in debt that it was unable to find anyone willing to buy the property and keep it open as a casino.
Because of the Revel Casino closing, by mid-September, there are already four Atlantic City casinos to have gone out of business, out of its total 12 casinos.
Over Labor Day weekend, Revel Casino closing is the second Atlantic City casino to shut down. On Sunday afternoon, the Showboat closed, while the Atlantic Club closed in January. The Trump Plaza is due to close Sept. 16, reports news website nj.com.
Revel Casino closing has left many of its staff wondering of what's to come.
Mark Hubbard, a server at Revel's SkyCafe said, "It's a little bit of a shock. I've been in the industry for 20 years. I've been laid off, but never because of a casino closing."
He is only one of many workers who aren't sure what to do next.
Lori Bacum, a massage therapist at Exhale, Revel's high-end spa, is another workers unsure of her next step with Revel Casino closing.
She said, "It's a tragedy. There were some warnings, but none of us thought it would happen. We felt so safe, because this was the place that was going to take (the city) to a new level."
Atlantic City reportedly began year with 12 casinos, but before the summer is over, it will only have eight.
According to the Daily Mail, many casino analysts and industry executives are expecting the remaining casinos to fare better financially because of the decrease in competition.
Andrew Tannenbaum of Edison, who has stayed at Revel a dozen times in the past year, said of the Revel Casino closing, "It's kind of sad. Compared to other casinos, this was a lot nicer. There wasn't the riff-raff here."
"But I think they overspent, went overboard and got in over their heads. When the Borgata opened, that should have been the last of the high-end casinos for Atlantic City," he added.
Meanwhile, analysts and competitors said that the Revel Casino closing was laden with bad business decisions and a fundamental misunderstanding of the Atlantic City casino customer, reports the Daily Mail.
Mark Juliano, president of Sands Bethlehem in Pennsylvania and the former CEO of Trump Entertainment Resorts in Atlantic City said, "The timing of it could not have been worse. The financial climate while Revel was developing and when it opened were completely different."
Revel officials declined to comment on the matter.
Apparently, Atlantic City's casino revenue has fallen from $5.2 billion to $2.86 billion last year and it has been going on since 2006. By the looks of it, especially with a supposed beam of hope, Revel Casino closing, it will continue to fall this year.
New Jersey voters in 1976 reportedly approved casino gambling as a way to revitalize Atlantic City and provide stable, lasting jobs, but because the Great Recession hit as new casinos rose in neighboring Pennsylvania and New York, Atlantic City's customer base has been deeply affected, according to the Daily Mail.
According to the AP, the consolidation which is currently pummelling Atlantic City is just a reaction to the saturated north-eastern U.S. casino market, and the insufficient demand to support them all.
Revel Casino closing, however, is the most costly failure for Atlantic City.
This article is copyrighted by Travelers Today, the travel news leader
