Atlantic City To Build a New Casino!
Atlantic City recently lost its status as the nation’s No. 2 casino market to Pennsylvania. The city also saw their gross operating profits decline by 7.4 percent last year, to just under $495 million. That’s down from $534.6 million in 2010. The plan is to build the brand New Casino In Atlantic City! The state of New Jersey are now hoping that the opening of Atlantic City’s 12th casino will turn it all around. The casino, called Revel, recently opened and is the first new casino to open in Atlantic City in twelve years. The Revel is 47 levels tall and spans 6,3 milion square feet (20 acres). Lawmakers now hope the Revel will attract the new clients and added gambling revenue Atlantic City so desperately needs.
“We want it to be a family destination,” New Jersey’s Lieutenant Governor Kim Guardagno told CNBC “We want it to be a destination that tourists come to. We want them to see that there’s 127 miles of beach in New Jersey and most of them are right here in Atlantic City.
The casino is using its location right at the water by using dark rooms and neon lights wich place some of the 150 gaming tables near windows. But the Revel is not just about gambling. It has two nightclubs, 14 restaurants, a 32 000 square foot spa, beach-based workouts and a 5 000 seat amphitheater called Ovation Hall.
“What we really did was we said okay, if you had a day where you had a lot of time on your hands, what would you do?” Revel Entertainment CEO Kevin DeSanctis told CNBC. “We just filled that in.”
It hasn’t been an easy ride for the $2,4 billion project. The project was halted during the recession after Morgan Stanley, a former partner, pulled out. Kevin DeSanctis found a new supporter in New Jersey Govenor Chris Christie. Revel received $261 in tax credits, and DeSanctis said the fact Christie showed a commitment to Atlantic City, helped convince his partners to restart Revel. Atlantic City has been hard hit by the recession. That and the increased competition from casions in the states of New York and Pennsylvania makes some forecasts call for the gaming revenue to decline again this year. Revel hope to help the outflow of old clients and bring in new ones with its 160 000 square feet of indoor and outdoor meeting spece, a ballroom capable of seating 1800, four executive boardrooms and 20 meeting rooms.
“Generally if you look at the convention business in this town, I think the typical occupancy from this group of customers is about six percent,” said DeSanctis. “We’re going to run, our goal is to run 21 percent.”
Analysts are optimistic about the Revel’s success, but they don’t see it spilling over into neighboring casinos or Atlantic City’s neighborhoods. Instead they think Revely might pull enough traffic in from the other nighboring casinos leading to the weaker ones will be forces to close.
The Revel opens on Memorial Day, the last monday in May.