New Jersey’s embattled Revel Casino received more bad news this week. State Senate President Stephen Sweeney has called on the Division of Gaming Enforcement to investigate the Casino’s “precarious financial position.” Despite the fact that it has been operating at a loss in 2012, Revel management has claimed that its inability to make good on its construction debts and city property tax bill is a result of Hurricane Sandy. Predictions that the casino will fold are growing louder.
The controversial project was awarded a $261 million tax subsidy by the state in 2011 to assist its investors in leveraging additional financing to complete its stalled construction. While this recent news bodes poorly for investors and the state’s Economic Development Authority, it may be a relief for existing casinos in the region that are forced to compete with massively subsidized new development.