The Economic Impact of Casino Closings

No Qualified Bids for Revel Casino: Source

The news could spell the end of the troubled $2.4 billion casino and resort

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    NEWSLETTERS

    The Revel Casino could close. A source involved in the auction and sale process says the casino received no qualified offers.

    A lack of qualified bids for the auction of the bankrupt Revel Casino and Resort in Atlantic City could mean luck has run out for the troubled gambling hall.

    A source involved in the bankruptcy auction and sale of the $2.4 billion resort told NBC10 on Monday no acceptable bids have been put forth ahead of Thursday's auction. Officials had already postponed the original auction date by a week to have more time to review bids.

    Revel's board of directors is meeting Monday to determine the next steps and whether they will be forced to close the casino-resort, the source says. An announcement could come soon after that decision is made, according to the source.

    Atlantic City Mayor Don Guardian said in July that there were six potential buyers for the casino, but none of those bids had been outlined.

    Casino officials have said they would close the resort, Atlantic City's newest, if a buyer couldn't be found.

    Should Revel's owners opt to close the casino, it will be the fourth gambling hall to shut down this year along the Atlantic City boardwalk.

    The Atlantic Club was closed in January. Caesars Entertainment-owned Showboat, which sits next to Revel on the boardwalk, is set to close its doors at the end of this month. Trump Plaza is shutting down in mid-September.

    Revel, which employs more than 3,000 people, ran into trouble before it even opened its doors in April 2012.

    One of the casino's original financiers, Morgan Stanley, pulled out during construction, leaving the project stalled. The State of New Jersey offered $260 million in tax incentives get the project moving again and an additional billion dollars in private funding was eventually secured to finish and open the resort.

    But, nearly a year later the casino voluntarily entered bankruptcy protection for the first time in February 2013.

    The casino industry's downturn has not only had a direct impact on workers, but also those living in the seaside resort.

    Tax appeals from the struggling casinos was a factor in a 29-percent property tax increase approved last week. Guardian said the assessed value of the casinos dropped nearly by half recently.

    Three state lawmakers asked the state's Casino Control Commission to force Trump and Showboat's owners to stay open. However, the commission says that's out of their purview.

    NBC10 reached out to a Revel spokesperson for comment, but has yet to receive a response.