Revel’s Financial Struggle Continues [POLL/AUDIO]
Revel owes millions in unpaid taxes to Atlantic City and borrowed millions more to stay open through next year. The struggling casino’s finances continue to be in trouble.
Casino officials are worried about a growing debt load of more than $1.3 billion.
In August they secured a $100 million line of credit to help it operate through next year and right now they owe $12 million in unpaid taxes.
Roger Gros of Global Gaming Business Magazine says its premature to say that Revel will not survive simply because it owes money.
“Other casinos have owed money and still owe money, yet they are operational right now and still in business. The fact is, Revel will revaluate as all casinos do they are just waiting to see what the final determination is.”
Gros says there is no question that the casino has had its share of financial problems.
“It hasn’t performed as well as many had hoped and part of the reason is that some of the bars, banquet facilities and restaurants have not been open but that will be happening by the end of next year.”
If it did fail, Gros says it would be detrimental to Atlantic City’s future.
“It would be pretty serious, because Revel is the model that Atlantic City needs to go after if it wants to survive as a city. They need to go after other areas of marketing, the restaurants, the shops, the shows, ways to make money other than gambling revenue.”
In addition to financial troubles, he is also concerned about what Superstorm Sandy implications.
“I am worried that people got the message that the boardwalk was damaged, which isn’t true, and decided to stay out of the city. I think casinos waited too long to let the public know that they were open for business and that’s going to take awhile for that to be countered” said Gros.
A Revel spokeswoman said she expects the casino to secure more funding within the next month.