HOT Stories more

Five plead guilty in Detroit casino case

Article

$2.4 billion Revel worth only $246-$331 million

March 25, 2013 7:11 PM by Ray Poirier

How quickly billions of dollars can disappear because of a bad investment made in a bad time. Certainly the gaming industry has seen its share since the beginning of the 2007 recession. Just on the Las Vegas Strip, investors can see the remains of the Echelon, the Fontainblue, or the empty space that was once the New Frontier.

Atlantic City has seen several of its Boardwalk casinos and real estate parcels being sold for a fraction of their original costs. And now it is looking at the biggest failure of all, the Revel.

The city’s newest casino, built at a cost of some $2.4 billion, is filing for bankruptcy less than a year since its troubled opening. Unable to generate enough cash flow to meet its obligations, the property reportedly has filed a 400-page disclosure statement that it sent to creditors as part of the prepackaged bankruptcy plan.

According to a story in The Press of Atlantic City, the filing places the value of the property at just a fraction of its original cost.

The bankruptcy plan lists its debt at about $1.5 billion and calls for converting about $1 billion of that into equity, leaving it with $272 million in debt.

The debtors believe the plan, which contemplates a significant deleveraging, is in the “best interest of all creditors,” the disclosure form said. “Any other alternative does not in any way realize or recognize the value inherent under the plan.”

So how much is Revel worth today?

The company estimates that if it were sold within the next six months it would fetch between $246 million and $331 million.

Ray Poirier is the longtime executive editor at GamingToday.

Contact Ray at RayPoirier@GamingToday.com.

Like GamingToday on Facebook GamingToday on Facebook      and        Follow GamingToday on Twitter GamingToday on Twitter

top stories

Las Vegas-based Full House Resorts hopes Indiana lawmakers will let the state’s gaming operators bring some of its already approved capacity to the state’s more populous areas. Full House is the owner of the Rising Star casino resort in Rising Sun.

New York is expected to “retaliate violently” if New Jersey voters approve plans to allow two casinos across the river from Manhattan. New Jersey voters will decide in November whether to authorize casinos in the northern part of the state.

State officials say Nevada gambling revenue was down more than 2 percent in April compared with last year. The Nevada Gaming Control Board said Thursday that the state’s casinos won $876 million in April.

Gov. Chris Christie said a deal to rescue Atlantic City that advanced in the Legislature this week contains the authority he would need to help the struggling resort town, but he stopped short of saying he would sign it.

As many as 11 states may adopt regulations permitting and regulating daily fantasy sports by the end of the year. Six states have passed bills to regulate daily fantasy sports so far, and five more may do so soon.

Best Bites by Marco D'Angelo

Casablanca Mesquite Amateur Cannery sundays in May

Global Gaming Expo 2015 G2E www.bonus-casino-en-ligne.info

Pay-per-Head Maximum Profits

Pay-per-Head Triple Crown Deal

GamingToday Race and Sports Futures

           Westgate Superbook  Stratosphere Sports Book  

                Wynn Sports Book  CG Technology