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Wynn Resorts Not Keen On Investing In Revel Casino

Posted on April 12th, 2010

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Gambling tycoon Steve Wynn’s sudden announcement last week to withdraw from a deal to build a casino in Philadelphia caused many to suspect that he preferred instead to invest in Revel. In a statement, Wynn said he was “fascinated” by the prospect of a casino in Pennsylvania, “but this particular project did not, in the end, present an opportunity that was appropriate for our company.”

Last week, the Wall Street financial services company Morgan Stanley which owns a majority stake in the curtailed Revel casino project with its initial investment of $1.2 billion, made known its intention to sell all its shares in the company in a regulatory filing with the US Securities and Exchange Commission, even if the move would entail “a substantial loss” of that investment.

Revel is now trying to find new investors that would inject new funds into the venture to smooth the progress of the stalled project. Atlantic City is leaning on Revel to help the city’s struggling market compete with expanded gambling in nearby places such as Delaware and Pennsylvania. But Wynn said Friday he is not interested in the Revel casino project or in any other venture in Atlantic City. Wynn Resorts Ltd. spokeswoman Jennifer Dunne informed The Associated Press Friday the company has no plans of investing in any project in Atlantic City, including Revel. “We typically would not comment on rumors but given the amount of speculation, I can confirm that Wynn has no intention of investment or involvement in any project in Atlantic City,” Dunne said.

Don Marrandino, eastern division president of Harrah’s Entertainment Inc. said Wynn would have added some appeal to the city’s gambling scene. Harrah’s owns four casino in Atlantic City and Marrandino’s career in the industry gave him the chance to know Wynn. “He’s got the bravado and the sexiness. It would be helpful to have a guy like that in the market.” Shares of Wynn Resorts rose 68 cents to $86.91 in afternoon trading.

There was no comment as yet from the side of Revel Entertainment. Revel has said the casino will be completed but it is still in the process of conferring with China’ s Export-Import Bank for the additional funds needed to finish the project. The project was started in 2007, but ran into financial problems in 2009 when the economic recession started to manifest itself. Many workers were laid off and work on the project was stopped except for the exterior of the structure.