Morgan Stanley Scraps Revel

The party’s over for Morgan Stanley and its $1 billion Revel hotel and casino project in Atlantic City, N.J.

Morgan Stanley has decided to “dispose of [its] investment in Revel,” taking a $932 million loss rather than spending an additional $1 billion to finish the project, officials recently announced during an earnings call.

The financial company is looking to sell the casino within a year, leaving Revel scrambling to secure additional financing from China’s Export/Import bank.

While the exterior of the massive casino is nearly completed, the interior of the building has gone untouched since the project ran out of money in January 2009.

Revel CEO Kevin DeSanctis told the Press of Atlantic City the project is still moving along as originally planned.

“What you’re seeing is what we’ve been saying and planning to do all along,” DeSanctis said. “Unfortunately, certain people will be leaving the site. But there’s nothing for them to be doing.”

DeSanctis added that securing additional funding is imperative to getting construction back up and running.

“If we were to receive financing tomorrow, we’d start on the interior tomorrow,” he said.

Funding woes aren’t the only problems the 2,000-room hotel and casino project has faced thus far. Revel also faced backlash for a state tax break the project is seeking that could amount to as much as $350 million over 20 years.