Reporting David Madden
By David Madden
PHILADELPHIA (CBS) – Atlantic City’s newest hotel casino has gone to the banks, again, seeking additional funding to keep the operation going just 8 months after it opened.
Revel’s lenders increased the company’s line of credit to $100 million in August, partly because gaming revenues failed to meet estimates. Then again gambling is off all over town, prompting Atlantic City to emphasize other attractions.
Analyst Joe Weinert with the Spectrum Gaming Group says that effort is paying off, or at least was.
“The city itself is making a lot of positive strides both in terms of cleaning up areas, opening up new non-gaming attractions, bringing in a lot of entertainment. The non-gaming revenues have continued to do well. But Sandy was a punch to the gut of Atlantic City,” Weinert explains.
The boardwalk and casinos are fine, but traffic is down post hurricane, leading some on Wall Street to suggest Revel might be on the brink of insolvency.
Revel officials hope to work out new financial arrangements within the next month and a half.