AC’s hyped Revel casino is falling flat

Since opening to much fanfare in April, Atlantic City’s $2.4 billion Revel casino has been a bust, according to the Philadelphia Inquirer, and may be on the verge of bankruptcy. The casino had an operating loss of $35 million in the second quarter, according to the Division of Gaming Enforcement, although $17 million of it came from “one-time preopening charges.”

Meanwhile, conditions are improving for other boardwalk properties as non-gaming revenue increased 13.3 percent annually in Atlantic City.

Sign Up for the undefined Newsletter

The poor financial performance is especially jarring for many Atlantic City officials in light of the casino receiving more than $300 million in state funding and tax breaks. “Initially, Revel was supposed to be a winner that got all these state-funded advantages that no one else got. The real loser are the taxpayers,” Steven Lonegan, director of the New Jersey chapter of free-market economy advocates Americans for Prosperity, told the Inquirer.

Gaming analysts blame the casino’s struggles on its ultra high-end focus in a location that tends to attract more middle-class vacationers and day-trippers. Still, CEO Kevin DeSanctis said Revel “remain[s] confident in our economic model.” [Philly.com]Adam Fusfeld