APNewsBreak: Revel ends contributions to 401(k)

APNewsBreak: Revel Casino Hotel ends contributions to employee 401(k) in cost-cutting move

Associated Press

ATLANTIC CITY, N.J. (AP) -- New Jersey's newest casino ended contributions to its employees' 401(k) accounts Friday as part of ongoing cost-cutting moves.

It was not immediately clear how many employees would be affected by the Revel Casino Hotel's decision.

"We hope to be able to restore the match in the future," said casino spokeswoman Susan Scheirer.

The move was the latest cost-cutting venture at the nonunion Revel, which has previously laid off workers ranging from dealers to managers.

The $2.4 billion casino resort, which is less than a year-and-a-half old, emerged from bankruptcy court in May. It has struggled since it opened in April 2012 to gain a substantial share of Atlantic City's cutthroat casino market.

Interim CEO Jeffrey Hartman said earlier this month Revel would continue to look for ways to reduce expenses and become profitable.

Its bankruptcy case enabled it to wipe away $1.2 billion of its $1.5 billion in debt, in return for granting lenders an 82 percent ownership stake.

In figures released Thursday by state casino regulators, Revel saw its quarterly loss grow to $40.8 million, up from $35.1 million in the second quarter of 2012. For the first six months of this year, Revel's operating loss widened to $81.6 million, compared with a loss of $35.1 million in the same period last year.

It has remained mired near the bottom of Atlantic City's 12 casinos in terms of the amount of money won from gamblers.

A slots refund promotion drew widespread publicity last month, but the way in which it refunded slot losses — gradually over several months through credits to a player's club card — angered many gamblers. Revel's monthly casino revenue went up more than 33 percent in July, to nearly $23.4 million, for its best month ever.


Wayne Parry can be reached at http://twitter.com/WayneParryAC

View Comments (4)