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Revel casino still talking with potential bidders

By WTOP Staff

WAYNE PARRY
Associated Press

ATLANTIC CITY, N.J. (AP) — A day after announcing it will shut down next month, Revel Casino Hotel told a bankruptcy court judge it is still negotiating with potential buyers.

In a notice adjourning an auction of Revel that had been set for Thursday, its lawyers say they are engaged in “ongoing negotiations” with “certain potential bidders” they did not identify.

The filing follows Revel’s announcement that will shut down by Sept. 10, having been unable to find a buyer.

The casino held out hope a buyer could eventually be found through bankruptcy court, but said it needs to begin winding down its operations.

“The debtors have continued to evaluate the bids received and have been working with certain potential bidders with the goal of naming a successful bidder,” Revel wrote in its filing on Wednesday. “As a result of these ongoing negotiations, and in an effort to maximize the prospects for a value-maximizing sale transaction,” the auction needs to be postponed indefinitely.

Revel officials and attorneys would not comment on the court filing.

The filing did not explicitly say so, but it appears to leave the door open for bidders to try to purchase the property as a non-gambling facility after it shuts down.

The news came on the same day that state casino regulators reported Atlantic City’s casinos took in 11 percent less from gamblers in July than they did a year ago.

Figures released Wednesday by the state Division of Gaming Enforcement show the 11 casinos won $274 million in July, compared with $297.1 million in July 2013. That includes $10 million in Internet gambling revenue, which was up by about $500,000 from June.

In a note to investors Wednesday, Wall Street agency Fitch Ratings said Revel’s anticipated closure “illustrates the depth of distress for the Atlantic City gaming market.” Hours later, Gov. Chris Christie announced he will hold a summit and appoint a working group on Atlantic City’s future on Sept. 8, including state and local officials, casino and labor leaders.

Revel announced it will close after just over two years amid a rapid, unprecedented contraction of the Atlantic City gambling market. It started the year with 12 casinos, but will have eight before fall.

The Showboat is set to close on Aug. 31, followed by Revel on Sept. 10, and Trump Plaza six days later. The Atlantic Club closed in January.

When the July revenue numbers are adjusted to exclude the Atlantic Club, the year-over-year decline is 6.6 percent.

Revel posted the biggest decline, down more than 36 percent to $14.8 million. It had warned in June that it might have to shut down if a buyer could not be found.

Trump Plaza was down 34 percent to $5.3 million, and the Showboat was down more than 19 percent to $15 million.

The Golden Nugget posted the biggest increase, up 40.5 percent to $18.2 million. The Tropicana was up more than 34 percent to $27.7 million.

So far in 2014, the casinos have taken in $1.55 billion. That would have put Atlantic City on track to reverse a seven-year revenue decline by the end of the year, boosted by Internet gambling. But the impending closures of four casinos will prevent that.

Analysts say that despite the pain of losing millions in revenue and nearly 8,000 casino jobs, the spate of closings should help the remaining eight casinos do better with less competition.

The Internet gambling market continued to be dominated by the Borgata, at nearly $3.2 million for the month, and Caesars Interactive, close behind at $2.7 million. The Tropicana continues to ramp up its online performance, taking in more than $1.9 million.

For the first seven months of the year, Internet gambling in New Jersey has taken in $73.1 million. It began in late November last year.

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

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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