AC Oct Revenues....Revel 9.3 Milion

http://www.nj.gov/oag/ge/docs/Financials/PressRel2012/October2012pressrelease.pdf


Even with 4 days closed from Sandy, you can see they are getting worse by the week. Because of the poor management at Revel, it is hard to determine how the Non Smoking has affected them. Even the AC Club beat them. Time for Kevin to look for a new job.

Kevin has one heck of a resume. Maybe he'll leave his last gig off it.

I really don't understand what the Revel Game plan was. They entered a market where all of the current players had been losing business for what 6, 7 years, because of a number of factors, bad economy, increased competition in neighboring states. Where did they think their market share was going to come from? They were going to have to take from their AC competitors. But yet, they absolutely refused to do any kind of marketing. I think they just thought if we build it they will come. Being the new, shiney, glitsy place is good for a look. People will stop by and take a look. But you gotta give them something (promo, good games), something besides high end prices, to keep them coming back.

Quote: kewlj

I really don't understand what the Revel Game plan was.

Revel was the only place where I lost this weekend. I think that I am single-handedly responsible for keeping The Revel in business for another seven tenths of a second.

I visited the Revel for the first time this weekend. It's really neat, I'm the age they're trying to attract but not the type of person. Also, as a self-described serious gambler, I just couldn't see myself blowing my bankroll there - I know we have some here that like it but there's just something awry about it.

The escalator scared the living shit out of me... I couldn't stop thinking about the story of that guy falling off. Having a little case of acrophobia doesn't help either.

Also, a non-dealer employee said that they laid off "half the staff" a week or so ago at Trump Plaza. I didn't press the issue to find out whether or not it included the dealers, but the layoff showed during check-in when I had to wait half an hour to get my key.

Might be the beginning of the end.

Quote: ahiromu

Also, a non-dealer employee said that they laid off "half the staff" a week or so ago at Trump Plaza. I didn't press the issue to find out whether or not it included the dealers, but the layoff showed during check-in when I had to wait half an hour to get my key.

Might be the beginning of the end.

The end is close there. They would take $25 Million for it if they could get it. It is going to be sad seeing the once iconic property sitting empty.

My further two cents on Revel from this past weekend:


My two cents rant

Quote: ahiromu

I visited the Revel for the first time this weekend. It's really neat, I'm the age they're trying to attract but not the type of person.

Here is an update:
"A decade ago, Atlantic City drew nearly 82 percent of its net revenue from gambling; last year, casino wins accounted for 73 percent. Borgata Hotel Casino & Spa led the way with casino revenues making up 68 percent of total revenues last year. For Harrah’s Resort, it was 69 percent.

Even Revel, which opened April 2 with more of an emphasis on resort amenities than any other Atlantic City casino hotel, had only about 60 percent of its total revenue coming from gambling, according to its second-quarter filings. The struggling casino start-up also posted a gross operating loss of $35 million in the second quarter. Chief Executive Officer Kevin DeSanctis has said the casino must improve its gambling floor performance in order to reverse the loss.

Through the first half of this year and excluding Revel, Atlantic City had shown signs of promise, with a string of quarters showing increasing profitability. The last time the industry had any growth in its gross operating profit was 2006. At the same time, although net revenue from nongambling offerings grew just shy of 2 percent, the drop in gambling revenue was significantly more and resulted in a 6 percent drop in total net revenue during the first half of 2012." acpress

The formula for success is the same as it ever was: "Good food, good whiskey, and a good gamble."

Does Revel even try to attract gamblers? What are their BJ rules? Craps odds? Do they have single 0 roulette or full pay VP?

I doubt you could get answers to these questions from any of the Revel employees and certainly not from Revel management. Anyone ever tried to even glean similar information from a casino's web site, such as craps odds or BJ decks and rules or Roulette zero information?

Profits at Revel were supposed to come from The Amenities. Amenities is a fancy word for "Miscellaneous Non-Casino Stuff". You know, Rooms, Pools, Gyms, Bars, Art Galleries, Fancy Smancy Restaurants, Spas, Teen Arcades and anything else that newbies might walk around and gawk at.

Some Honchos from Harvard Business School were told you make money from Amenities. They should have been told: You see, there is this Pie and its been shrinking real bad and we need to get a piece of that shrinking pie. Amenities ain't gonna do it. What is Revel gonna do now? Say "come to Atlantic City and go Upscale because our hookers still have some teeth left".

I doubt that they can blame it on the non smoking policy. Only 19% of American adults smoke however I think that the percentage of casino patrons who smoke would be higher.

Oh, they will probably find several convenient "hooks" to hang the blame on, but smoking is hardly the real culprit. Some casinos have been adding smoking areas by covering but not enclosing patios so various clean indoor air acts do not apply then they allow smoking at the newly added slot machines. Suddenly the bars and the slots are doing business again.

Smoking is linked to risk taking and reward seeking behavior and there appears to be a genetic link to gambling, but its hardly a deciding factor in the economics.

I think the lesson here is 'loyalty'. Who is the typical AC customer? Casino goers from PA will go only because of loyalty to their casinos in AC -- it they had no loyalty, they would just frequent the PA casinos.

For New Yorkers, they have Yonkers to gamble at. New gamblers from NY might be attracted to Revel, but I think this might be the only piece of market share that they may grab. Old gamblers still will have their loyalty to the old casinos at AC.

Youngsters don't have alot of money to spend at casinos. Their graduation unemployment rate is high, and I think that most young people are going to be more conservative "these days" in what they do with the disposable part of their income, so I think the market is small.

And what promotions is Revel putting out there? Are their games competitive. What is it doing to take away the loyalty from other casinos. CZR and MGM have their national rewards systems. I spent a good couple of days at CZR Windsor the other day so I could get free rooms at Caesars in Las Vegas for next month. Revel doesn't have that advantage.

Oh well.

deleted

IMO it is the lack cheap food. I had read some where that Revel is cosidering adding some noodle shop and quick serve place to eat.

And that is the problem from the start. They talked big about how they were not a casino, gambling was just a sideline, etc. No players club, no tiered cards, no quick eats, no buffet, etc. Now that they have written the book on how to fail in the casino business with every decision, they are talking about adding stuff. However they are turned off most of the people that still play in AC and have done nothing to take the customers they were after from Borgata away.

Other than feeling sorry for people who work there and may lose jobs (other than Kevin and UKStages), the sooner this place changes hands the better. Even Gary Loveman, who may end up with it like they did with the PH deal, could do a better job.