More Trouble for Atlantic City Casinos
Revel started off slowly last year -- and things have gotten worse since then.A week before it is expected to emerge from bankruptcy court, Atlantic City's newest casino posted a 40 percent revenue decline from its opening month a year ago.
Revel took in just over $8 million last month, down from the $13.4 million it won in what was widely considered a disappointing opening month in April 2012.
Atlantic City's casino market as a whole saw its gambling revenue decline by 12.1 percent last month compared with a year ago.
Figures released Friday by the state Division of Gaming Enforcement show the 12 gambling halls took in $228.5 million.
Revenue from table games was $66.8 million, down 6 percent from April 2012. Slot machine revenue was $161.7 million, a 14.4 percent decrease due in part to the impact of a nearly 16 percent reduction in the amount of promotional credits that were wagered compared with the same month last year.
But Revel's revenue was clearly the biggest red flag in the monthly report, particularly as the $2.4 billion resort retools its operations and slashes its debt by turning over an 82 percent ownership stake to lenders.
"Although our April gaming revenues were disappointing, we are launching new initiatives that will drive future growth and re-introducing Revel to the gaming public over the next couple of months," Jeffrey Hartmann, Revel's interim CEO, said Friday. "Tonight we are opening our new Pearl Lounge, an exclusive members-only lounge for Pearl Card holders, that will promote increased loyalty among our existing guests and attract new slot players to Revel. This is the first of many new amenities and investments being made at Revel as we seek to broaden our appeal across a variety of demographics and gaming preferences."
Only Caesars Atlantic City (up 5.9 percent to $29.1 million) and The Atlantic Club Casino Hotel (up nearly 37 percent to $11.3 million) reported revenue increases in April.
Aside from Revel, the greatest decline was experienced at Trump Plaza Hotel Casino, which is in a tenuous position as a deal to sell it by the end of this month to a California company fell through. Trump Plaza was down 32.3 percent to just over $6 million for the month, one of the worst performances for an Atlantic City casino in recent history.
Bally's Atlantic City was down nearly 30 percent to $19 million; The Tropicana Casino and Resort was down 23 percent to $20.5 million; and Harrah's Resort Atlantic City was down 19.2 percent to nearly $28 million.
The Showboat Casino Hotel was down 17 percent to $16.5 million; Resorts Casino Hotel was down 13 percent to just under $10 million; and the Golden Nugget Atlantic City was down 10.7 percent to $9.3 million.
The Borgata Hotel Casino and Spa had a rare down month, declining 1.5 percent to $48.9 million, and the Trump Taj Mahal Casino Resort was down 1.3 percent to $21.7 million.
For the first four months of the year, Atlantic City's casinos won $884.6 million, a decline of 12.1 percent from the first four months of 2012.
(Copyright 2013 by The Associated Press. All Rights Reserved.)