Having filed for bankruptcy a second time, Revel Casino Hotel is trying hard to stay off the auction block. Maybe not hard enough: A $300 million price tag is too rich for Caesars Entertainment‘s blood or even flush Hard Rock International‘s. With $447 million in secured debt versus $9 million in cash on hand, it’s hard to see how Revel stays operational. Union Gaming Group looks on the bright side: “Year-to-date gaming win through May is up 29.3 percent to $59.6 million. The new management team continues to make a number of positive operational changes to get closer to break-even. The property doesn’t participate in the state’s online gaming industry, as it remains laser focused on improving operations.”
At least Gov. Chris Christie doesn’t have a Solyndra on his hands, as Revel has claimed none of its tax credits. By staking both political and fiscal capital on Revel, Christie really put his neck out there but he appears to be one of the few involved with Revel who will escape unscathed. But the situation at Revel is so bad that — at the moment — it appears to be a question not of whether it will close but when. For the sake of the employees, let’s hope it doesn’t come to that, but the portents look gloomy.
* Kevin Brown, chairman of the Mohegan tribal council, makes a trenchant argument for approving both Mohegan Sun‘s Catskills casino project but also Empire Resorts‘ nearby Adelaar. “That synergy might be more powerful, of having two casinos in close proximity than having two casinos spread apart,” he says, and history tends to vindicate him.
Both companies hope to build on the erstwhile site of the Concord Hotel. Mohegan Sun can also claim ancestral ties to the region. Consultant Cliff Ehrlich‘s family once owned the Pines Hotel, while Mohegan Sun CEO Mitchell Grossinger Etess‘ connection speaks for itself.
The next phase in the process is for Empire and Mohegan Sun to announce what goodies they intend to bestow on the towns of Liberty and Monticello. As Etess puts it, “Our key is to make sure that we expand the economic benefits beyond just the gaming floor.” Empire is also one of 10 casino applicants which has signed onto a non-compete agreement with area performing-arts venues. Including mitigation clauses for the non-casino venues, this is an enlightened alliance of casino interests with the entertainment industry at large. * And here’s a county-by-county breakdown of the applicants, as submitted Monday …
ORANGE COUNTY
Caesars New York (Woodbury)
Resorts World Hudson Valley (Montgomery)
Sterling Forest Resort (Tuxedo; Genting Americas both)
The Live! Hotel & Casino (South Blooming Grove; Cordish Gaming and Penn National Gaming)
Hudson Valley Casino & Resort (Newburgh; Rush Street Gaming and Saratoga Casino & Raceway)
Grand Hudson Resort & Casino (New Windsor; Greenetrack and Full House Resorts)
SULLIVAN COUNTY
Montreign Resort Casino (Thompson; Empire Resorts)
Mohegan Sun at The Concord (Thompson)
ULSTER COUNTY
Nevele Resort, Casino & Spa (Ellenville)
SCHENECTADY
Rivers Casino & Resort at Mohawk Harbor (Schenectady; Capitol Region Gaming)
SCHOHARIE
Howe Caverns Resort & Casino (Howes Caves)
MONTGOMERY
anonymous (Amsterdam; Florida Acquisition Corp.)
RENSSELAER
Hard Rock Casino (Rensselaer)
Capital View Casino & Resort (East Greenbush; Saratoga Casino & Raceway; Churchill Downs)
TIOGA
Tioga Downs Casino (Nichols)
BROOME
Traditions Resort & Casino (Johnson City)
SENECA
Lago Resort & Casino (Tyre; Wilmorite)
… I don’t much care for the chances of lazy Florida Acquisition Corp., which had months to come up with a name for its project and failed utterly.
