Atlantic City Casino Stubbornly Advanced by Revel Entertainment

But Revel Entertainment Group thinks it knows what will bring boom times back to Atlantic City: another casino.

Atlantic City finds its casino industry reaching an important decision point. Revenues have declined for over a year, and problems beset casino management in all directions.

Increased competition caused by the opening of slot parlors in nearby states has taken away some of the daytripper business. Nationwide economic doldrums have caused the entire market to slide precipitously, and casinos stocks are among the big losers.

A smoking ban expected to start Wednesday has been pushed back a year, so as not to further damage the city's main industry. Credit markets have dried up worldwide, shutting down plans for huge new casino resorts at several locations, including Atlantic City.

But Revel Entertainment Group thinks it knows what will bring boom times back to Atlantic City: another casino. Revel plans to build a twin-tower casino that will be the city's tallest building. The project is huge even by Las Vegas standards, boasting over half a million feet of retail and restaurant space.

Over a thousand workers are presently employed by the project, and that number will rise to five thousand.

While credit problems have cause cancellations and suspensions in the gambling industry, Revel promises to carry on. The initial investment of $300 million is carried by Morgan Stanley, but Revel is searching for another $2 billion to complete the project.

The casino is due to be finished by late 2010, but financing has already made tough choices a necessity. The possibility that only one tower will be constructed while the second awaits demand and sunnier economic news is a looming issue.

Revel seems to be stubbornly insisting that the answer to the overspending and diversification that have brought the casino industry so many woes is to do more of the same.