Atlantic City Faces Challenge With Revel’s Demise

Posted on August 15, 2014

Five years after the longest recession since the 1930s, hotel rooms sit vacant and revenue keeps falling in what was once the second-largest U.S. casino market. New Jersey Governor Chris Christie’s turnaround plan for the municipality, begun in 2011 and hinged on Revel’s success, hasn’t delivered, prompting Moody’s Investors Service to cut the city’s $245 million of general-obligation debt to junk last month.

Full story at www.bloomberg.com

Related Topics: Atlantic city, bankruptcy, business trends, casinos, economic outlook, New Jersey operators

Comments ( 1 )
  • Jan van Eck

     | about 6 years ago

    What seems to be overlooked by Gov. Christie and the municipal "leaders" of AC is the impact of their obsessive and aggressive "bus tax and inspection" policies. The Town levies a tax on each bus for travelling the city streets - yet, a dump truck can drive down the street without buying a special travel permit sticker. Then you have "specific routes" that buses must follow- on pain of huge fines. I know of one case where a driver missed his turn and all he did was continue forward for one block, to be stopped and hit with a $156 ticket. Do you seriously think that the bus drivers, and companies, are not going to react to this abuse and simply stop taking charters to AC? The State's contribution is to "hang out" at the bus layover spots to go conduct "spot inspections." What this means is that drivers cannot go off-duty and get rest before the return trip, so that actually negatively impacts safety. Then, if the "inspectors" go find something they don't like (which they always do), you get a "red-tag" and the bus is out of service. Now what? There is no Court of Appeal; it is 11 pm on a Friday night and your bus has to get towed out of there. How do you get the pax home? Hire somebody else? And if nothing is available? There is no rational reason why any bus driver or company would want to take a charter to AC. I sure don't. Lots of other places to take charters to .Now, you can argue that the bus pax don't gamble as much as the "whales," but that misses the point: if your revenue is from gambling, then you need volume to get past break-even. And that volume is from the bus charter passengers. Since nobody in authority is about to change their tune, it is no surprise at all that AC is headed for extinction. Serves you right.

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