The Revel Casino Hotel will shut down on Sept. 10, 2014.
The most recent casino to open in Atlantic City is to close its doors in September.
Revel Casino, which opened just over two years ago, will close on September 10.
It was originally believed that its launch would turn around the crumbling gambling market in the seaside resort.
The $2.4 billion casino has never turned over a profit, and its closure will result in the loss of more than 3,100 jobs.
In a statement released on Tuesday morning, a Revel spokesperson said: “We regret the impact this decision has on our Revel employees who have worked so hard to maximize the potential of the property. We thank them for their professionalism and dedication; however we are faced with several unavoidable circumstances.
“Despite the effort to improve the financial performance of Revel, it has not proven to be enough to put the property on a stable financial footing.”
The company also stated that its situation was compounded by a “considerable non-controllable expense structure,” which financially hit the property. It also said challenges arose in attempts to sell Revel.
The firm says that it still wants to find a buyer through the bankruptcy process. However, this would only be after the facility has shut.
“We hope that Revel can be a successful and vital component of Atlantic City under a proper ownership and reorganized expense structure,” the company said. “We will continue to endeavour toward a placement with such an owner, but there can be no assurance as to the outcome of the pending bankruptcy process.”
The casino had been scheduled to be sold at a bankruptcy court auction a week ago. This, however, was delayed so that casino officials could examine the bids that it had received. However, the board decided on Monday to shut the casino.
Revel opened in April 2012 as the first new casino in Atlantic City since the Borgata opened nine years earlier. Many believed that, it would bring the casino market in Atlantic City back to life. The casino industry there has been in steep decline.
Since 2006, Atlantic City’s casino revenue has fallen from $5.2 billion to $2.86 billion in 2013.
Since Revel opened, it has consistently ranked as near the bottom in terms of the amount of money won by punters.
It was originally hoped to be a luxury resort with a casino, but the model has not been successful, and it filed for bankruptcy in 2013, just a little over a year after opening.
New ownership and a promotional campaign were not enough to save the casino, and it filed for bankruptcy a second time in June, warning that it would close if a suitable buyer could not be found in time.
As Two Little Fleas have previously reported, Revel is one of several casinos that are closing this year in Atlantic City, as the Atlantic City gambling market continues to crumble.
At the beginning of 2014, Atlantic City had 12 casinos. Now, with Revel closing, as well as the Showboat closing on August 31, and the Trump Plaza also shutting down September 16, that number is dwindling.
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