New casino bankruptcy: Revel in Atlantic City to enter Chapter 11

The Revel opened last April amid hopes that it could spark a revival of Atlantic City's fortunes. (Revel via Baltimore Sun)

Atlantic City's $2.4 billion Revel casino will declare Chapter 11 bankruptcy less than a year after opening amid considerable fanfare.

The casino has failed to resonate with gamblers in Atlantic City, which had looked to the casino as a catalyst for the ailing gambling town's revival. Atlantic City now has stiff competition from casinos in Pennsylvania, Queens, Westchester and Connecticut.

The Chapter 11 bankruptcy declaration is designed to reduce its debt load and place the casino on firmer financial footing. The company's chief executive spinned the news as a positive.

"Today's announcement is a positive step for Revel ," Kevin DeSanctis said, according to the Associated Press. "The agreement we have reached with our lenders will ensure that the hundreds of thousands of guests who visit Revel every year will continue to enjoy a signature Revel experience in our world-class facility."

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