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 Revel Entertainment Group LLC announced that it has raised $1.15 billion to restart construction of a half-built casino resort in Atlantic City. Construction of the beachfront resort (which will be the most massive resort in Atlantic City) was well underway when the financial crisis hit. The project was about $1 billion short of the $2.4 billion needed to complete construction and when Morgan Stanley walked in April many thought the project would never be completed.
Atlantic City has been struggling with declining revenue since the recent recession hit. Gambling revenue was down nearly 36% in 2010 and competition has intensified since new casinos have opened in Delaware, Maryland, and West Virginia. Six of Atlantic City's casinos went bankrupt during the financial crisis so there is no question that Morgan Stanley had his reasons for dropping the project. It is unclear how Revel Entertainment plans to turn a profit in the current economy but they are happy to be helping the community get back on their feet.
"Re-starting the project immediately puts 2,100 construction craftsmen and craftswomen back to work and will result in full-time employment for approximately 5,500 people," said Kevin DeSanctis, chairman and chief executive officer of Revel Entertainment during the announcement.
It is their hope that the project is just the thing Atlantic City needs to jumpstart its economy.
As always, stay tuned to Casinofan for more news and updates.
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