Revel to close, barring a miracle; Gaughan memorialized

revel-get-it-all-back-600That’s the message coming from top Revel Resort brass, who sent a letter to casino employees cautioning them that — unless the property can be sold by Aug. 18 — they all may be out of jobs: “If Revel is unable to complete such a sale promptly, Revel expects to close its entire facility.” That would make Revel, next to Fontainebleau, the biggest megaflop in casino history.

Revel’s owners, who obtained in a debt-for-equity swap, appear to be trying to shop it around for $300 million — at a time when Atlantic City casinos are going for a 20th of that. Hard Rock International and Caesars Entertainment have both hesitated to pull the trigger on a Revel purchase, and union Unite-Here, a longtime Revel adversary, pegs the value of the casino as low as $25 million and no higher than $73 million. (Its comparatively unused state would justify the upper end of the scale.) Hard Rock has definitively stated its interest — “if the price is right” — and desperation on the part of Revel might bring both parties to the table.

A textbook lesson in how not to run a casino, Revel now faces the danger of being the biggest tombstone on the Boardwalk, a chilling warning for anybody who would buy or build in the Atlantic City market.

* Bravo to the El Cortez and the Museum of Gaming History for creating an exhibit memorializing the legacy of the late Jackie Gaughan. All nine Gaughan-owned casinos are represented in the display.
* Facing the closure of its Brayton Point power plant, the Massachusetts town of Somerset has decided to get into the chase for a Region C casino. And why not? Fall River and New Bedford are fumbling around, and Taunton‘s fortunes are tied to the Mashpee Wampanoags‘. So the city has hired the firm of Considine & Furey, which will be paid expenses and a contingency fee (25% in Year One, 10% in Years Two through Five) to bring them a casino.
“We don’t want anyone to get all excited. This is just a first step,” counseled Selectman Donald Setters. But the city has 100 acres, adjacent to Brayton Point and evidently ripe for casino development — less 20 acres set aside for alternative-energy development, probably a solar farm. But a casino would definitely be a bigger jolt to Somerset’s system.
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