Atlantic City Revel Casino Gets Reprieve
ATLANTIC CITY, N.J. (Associated Press) — Revel was given a second chance Wednesday from New Jersey casino regulators, and now it’s seeking the same thing from customers.
In winning a reprieve, the bankrupt casino acknowledged several big mistakes, including preventing its guests from smoking; not paying enough attention to slots players; and booking too many hip acts at the expense of other forms of entertainment.
The state Casino Control Commission approved Revel’s reorganization plan, which will eliminate $1.2 billion of its $1.5 billion in debt by giving lenders an 82 percent ownership stake. That plan was approved by a bankruptcy court judge on Monday, and Revel anticipates formally emerging from bankruptcy on Tuesday.
“Everybody deserves a second chance,” said Jeffrey Hartmann, Revel’s interim CEO. “We’re looking for a second chance. We are trying to listen to and respond to customers. We probably didn’t do a great job of that last year.”
Regulators’ approval did not come easily, as commissioners and a representative of the state Division of Gaming Enforcement expressed serious concerns about Revel’s ability to turn itself around and save its 4,600 jobs.
“Absent a significant increase in slot revenues, Revel is still going to be in trouble,” said Jack Adams, a deputy attorney general. “Revel will still struggle to survive in this market. Can there be this turnaround, and can it happen when Revel says it will?”
Revel posted a $149 million operating loss from its April 2, 2012, opening through the end of March 2013. It has ranked near the bottom of Atlantic City’s 12 casinos in terms of the amount of money won from gamblers.
