Casino News

Casino operator Riviera reveals bankruptcy risk

2009-04-01 16:25:21

Riviera Holdings may be at risk of bankruptcy following a missed interest payment of $4 million.

The casino operator, which owns Colorado's Riviera Black Hawk facility and the Riviera hotel and casino on the Las Vegas Strip, announced that it may have to file under Chapter 11 bankruptcy protection if it cannot successfully restructure to fulfil its debt obligations.

According to Reuters, debt payments are becoming more difficult for casino operators to keep up with, as many people are curbing their budgets for gambling and entertainment in the midst of the credit crunch.

In a statement released on November 6th last year, the casino announced that its third-quarter (Q3) net revenues totalled $40.2 million - a decrease of 23 per cent from the same period in 2007.

The group attributed the loss to a 31 per cent reduction in net revenue at its Riviera Black Hawk facility and a fall of 20 per cent in net revenue at the Riviera Las Vegas.