Rants and raves about burning topics that have caught my attention midweek, be it greedy corporate shenanigans, frustration or joy in regards to the Philly sports teams, a movie, show or DVD that has fired up my imagination, an intriguing personality, or what’s happening in the region. — Lori Hoffman, Associate Editor, Atlantic City Weekly.
The news released today (Feb. 20) about Revel’s plans to file for a Chapter 11 prepackaged bankruptcy in March that will reduce its debt burden by more than $1 billion will not come as a shock to anyone, despite the fact the casino opened a little more than 10 months ago. Revel’s CEO, Kevin DeSanctis, said that the restructuring would give the casino resort more flexibility to operate.
“Today’s announcement is a positive step for Revel … The agreement we have reached with our lenders will ensure that the hundreds of thousands of guests who visit Revel every year will continue to enjoy a signature Revel experience in our world-class facility.”
I know a lot of people in the casino business, and many of them thought Revel’s business model was flawed from the beginning. The notion of selling itself as a high-end (translation: exclusive and expensive) self-contained resort with the gaming aspect as a secondary component would not work in this region because most of the region’s patrons are blue collar. You can’t survive without the slot players.
Revel’s operators had a mindset that included offering a players card that didn’t have different levels of rewards, thinking promotions were not needed to sell their brand new super luxurious resort and that being smoke free would be embraced.
Atlantic City Weekly’s on-line “Casino Promotions” column is usually the top story in readership week after week for a reason. Here are a few comments left there about Revel:
“Revel has no players club for premium players, stick to Borgata for best comps. If the Revel offers a lounge for premium players I may give it another try, if not I will stick to a good thing” … “Still no players lounge at Revel? Hard to believe. Premium players deserve special treatment” … “Revel is a failed project taken over on the cheap by amateurs who fail to understand that gambling is the business and the entertainments are the overheads. Real players come for the casino action. Tourists come for the $20 meals.” … “Showed my Harrah’s Diamond Card at Revel and received $50 in slot play. Played it with my new Revel card-then nothing, no offers of rooms, no nothing. I wonder what happened?”