Financial News

  • 2 September 2014, 13:38

Atlantic City's Newest Casino Shuts Its Doors

Atlantic City's newest casino, the $2.4bn (1.4bn) Revel, is closing its doors just two years after opening.

It is the latest casualty in the city's struggling casino market.

The Showboat closed on Sunday, Trump Plaza is closing this month, and the Atlantic Club closed in January.

Together the four generated $457m(275m) through the 12 months that ended in July.

But Revel is arguably the city's biggest failure.

The complex started construction just before the Great Recession hit in 2007, and had to take on so much debt it never could turn a profit.

It is in its second bankruptcy since opening in 2012.

The casino shutdown follows the closure of its hotel on Monday.

As workers removed the letters outside the building, employees wondered about their future.

"This was my main job. This was the breadwinner," said Shirley Green, a mother of two who was a card dealer at the Revel.

"And now I don't have anything."

Some of the closed casinos catered to low-margin gamblers, offering excessive promotions.

But some say the closures are the result of a saturated northeastern US casino market, which continues to add new gambling halls to markets without enough demand to support them all.

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