Morgan Stanley Pulling Out Of Atlantic City Revel Casino Project

The Atlantic City casino industry simply cannot afford to keep taking the hits that the economy is delivering. The latest bad news for the city came when Morgan Stanley announced they would be pulling out of the Revel casino project.

Morgan Stanley is the primary owner of the Revel project on the Atlantic City Boardwalk. The company owns ninety percent of the project, and they gave no indication why they would be halting their efforts at this time.

Speculation has already began as to why Morgan Stanley is pulling out of the deal. The New York Times reported that regulators in New Jersey had demanded financial records from some of Morgan Stanley officials by next week.

The company acknowledged that they will be taking a significant financial loss by shutting down the project. Already, over $1.2 billion has been spent by Morgan Stanley, but the bills could have kept piling up if Morgan Stanley chose to move forward with the project.

Building a casino resort in Atlantic City these days is a risky proposition. The eleven casinos currently in AC have experienced double digit decreases in revenue for many months in a row, and competition is growing among other Northeastern states.

Pennsylvania has become the main competition for New Jersey in the casino industry. Pennsylvania lawmakers, looking to capitalize on increased slot revenue, authorized table games earlier this year. That will make it even harder for AC casinos to dig out of the hole that has been created by the economic recession.

April 1, 2010
Posted By April Gardner
Staff Editor, CasinoGamblingWeb.com
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