The Revel casino resort in Atlantic City was due to be sold by auction on the 24th of September. Previous auctions of the luxurious casino resort that never managed to make a profit in its short time of operation, did not take place. The initial auction failed when no buyer came forward to bid for the Revel casino that cost 2.4 billion dollars when it was constructed just two years ago. When the Revel entertainment complex with its 1800 hotel rooms, restaurants, retail outlets, theatres and its 12 000 square metre casino opened there were great hopes that this first new casino to be constructed on Atlantic City’s Boardwalk since 2003 would revive gambling in New Jersey. Now the huge casino and entertainment centre may be sold for just 90 million dollars.
One known potential buyer
Revel was to have been auctioned last week when it was claimed that three bids were received but so far only one potential buyer has been named. Glen Straub from Florida, the President of Polo North Country Club has offered to buy the Revel casino resort for 90 million dollars if he can buy it free of its debts. His offer is only a fraction of the 2.4 billion dollars paid out to build the Revel complex. It has been reported that Straub’s lawyers did not want the auction to be postponed but that those owed money by Revel wanted it to be delayed to allow other possible bids to be made. In the end, the judge dealing with the case decided to put the auction off until after the Jewish Rosh Hashanah holiday is over so now the auction is due to take place on Tuesday the 30th of September.
A very bad year for Atlantic City
Revel is not the only casino resort to close recently in Atlantic City. The Atlantic Club Casino Resort, the Showboat Casino Hotel and the Trump Plaza Hotel and Casino have all closed their doors this year. The number of Atlantic City casinos has fallen from 12 to just eight in little over a year and there is now a question mark over the future of the Trump Taj Mahal Casino Resort. The closure of the Revel casino resort is said to have had a negative effect on the Trump Taj Mahal’s already struggling business. All of Atlantic City’s casinos have suffered from competition from new casinos in surrounding states and land based casinos everywhere are facing competition from online casinos. Efforts to revive New Jersey’s gambling industry by linking online licences to operators who joined with an existing land based casino haven’t yet had the hoped for outcome.
The Revel auction is to take place on the 30th in the Revel’s lawyers’ office in New York. With the closure of Revel Casino and this auction Atlantic city has lost over 2 500 slot machines and 120 gaming tables and hundreds more jobs.