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Posted on 08/12/2014 6:46:55 AM PDT by Citizen Zed
The $2.4 billion casino opened just over two years ago, and never turned a profit.
It was due to be sold at a bankruptcy court auction last week. But that auction was postponed until Thursday to allow casino officials to study bids that were received.
But after Revel's board met Monday, the decision was made to shutter the iconic glass-covered casino at the north end of the Boardwalk.
It will be the second of four Atlantic City casinos to shut down this year as the resort city's gambling market continues to crumble.
Trump Plaza and Showboat are closing within weeks.
(Excerpt) Read more at m.newsok.com ...
Translation: nobody wanted this white elephant but they held out til the bitter end.
oops..blacks should read blocks.
I quit going when they banned smoking. Figured if they didn’t want me I would take my money elsewhere. Now I go to Gulfport, MS. Rather lose my money to a red state anyway.
“It will be the second of four Atlantic City casinos to shut down this year as the resort city’s gambling market continues to crumble.”
The mob thugs who own and finance casinos will wake up some day and fire Harry Reid, Pelosi and other rats in Congress for removing basically any disposable income the average American has.
Also, the real unemployment rate, which has to be really high, has a very negative impact on gambling. When your house is under water, and you have trouble making ends meet, you are probably not making many trips to Casinos.
$2.4 billion to build and never turned a profit—Yikes!
Some investor group got royally hosed.
I expect that and high hotel taxes are killing the city. Hotel taxes are about 14% (9% Atlantic City Luxury tax, 4% NJ Hotel Tax, 1% State Occupancy fee). Add a 13% amusement and other fees and the story is readily apparent.
"Follow the Money, Honey"
Yeah, the economy sucks, but this has far more to do with gambling being legalized in neighboring states.
What happened in Atlantic City was that the casinos were a quick fix, as the only casinos were in the west. I took overnight bus trips there twice when they first opened. Instead of turning it into a desirable beach vacation that had casinos, they all but ignored that aspect. Can’t NJ do ANYTHING right?
I think so. Supply and demand.
Gambling is such a waste of money and a drain on the economy.
Somebody really needs to do a study on the economics of casino gambling. I would theorize that the bread and butter are old ladies and tourists. The grifters and “whales” probably don’t account for a huge share of their revenue stream. So when the old ladies are saving their pennies to buy food for their cats, and the tourists are staying in Des Moines, the core of their funding dries up.
So why would old lady/tourist dollars be drying up? Ask the obamateur.
Revel was a desperate attempt to create a go to resort destination in Atlantic City. AC is much more reliant on day trippers than say Las Vegas which is a destination even for people who do not gamble. The idea of some fancy resort in the dump that is AC was questionable at the time and proven to be a fantasy. If you want to go to a nice resort much nicer places down the Atlantic Coast. Gov Christie blew $250 MM in state money to complete the construction of the resort.
We stayed at the Revel recently, did not gamble a single penny, but we got a great deal on the room. The hotel part is really beautiful; wonderful views, lovely rooms, fantastic Spa and very good & varied eating places (both cheap & pricey). However, the residential area just outside of the hotel is blighted, with places I definitely would not walk at night, and the beach was pretty blah, too. Still, we were planning on going back ... guess not.
While the economy does suck, I think this is just due to the proliferation of casinos in so many states.
We see this in Indiana where we were among the first in the Great Lakes area to have casinos, now every state has jumped on the gravy train and business has slowed drastically.
Now the politicians nationwide are looking at how much dough legal grass is bringing in, that will be the next big financial push.
The opening of the casinos in Pennsylvania and slots at the NY metro area race tracks killed AC. People in the Philadelphia area no longer needed to drive down the AC Expressway to get their fix.
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