Baby Steps Towards Legalization At Last
Oversight Group Will Be Cabinet-Level
Buyers and Sellers Dance the Dance with Atlantic City gambling enterprises
Everybody wants a bit of Atlantic City’s casinos these days, it seems
Ah, the Atlantic Club in Atlantic City: the girl that everybody wants to rest with, but nobody shall marry. This New Jersey land gaming joint keeps on finding brand new suitors, however, and now a new one has popped up on the horizon: a local attorney-slash-entrepreneur, George Miller, who’s developed an investment group aided by The Flynn Company CEO Kevin Flynn of Philadelphia. Apparently, this estate that is real are eyeing all kinds of East Coast gambling enterprises, with the goal of firming something up before New Year’s 2014 strikes midnight on the clock.
Atlantic Club Simply One Contender
While Miller won’t come right away and say who is searching like they’ll certainly be getting a diamond just yet, he did inform the Press of Atlantic City his group hasn’t eliminated the Atlantic Club as being a contender, but that they were ‘looking all over the area’ for just the spot that is right make their deal.
The situation is created a bit more interesting for the reason that both Miller and Flynn hold really small stakes in A caesars-run pennsylvania property; albeit only a 0.25% stake each. Press of Atlantic City interviewer Donald Wittkowski implies that this alliance that is minor assist the duo, as Caesars has four casinos in Atlantic City and might be willing to part with one. You might recall that Caesars’ international debt-load is sky-high, and some cash right now might be over welcomed as a number of their notes are coming due in 2015. Rumors are that possibly Trump Plaza, Golden Nugget and Revel along with Caesars’ Showboat might all be getting sexy glances from Miller and Flynn at this time.
A great amount of Inventory Shared
It looks like it is a sellers market these times, though; also in line to buy something in Atlantic City likely to then get in position to get a gaming that is interactive for AC’s imminent Internet launch are clothes like PokerStars, possibly Kentucky’s Churchill Downs horse racing operation, as well as Philly’s SugarHouse casino owners are considered trying to expand to the Atlantic City market. British operators 2UP Gaming is also reported become interested in AC, backed evidently by an unnamed mogul that is asian.
One of the properties allowing it to be known they are able to be readily available for the best price are the now-infamous Atlantic Club, the Plaza (which killed a potential cope with the West Coast’s Meruelo Group club player casino deposit codes for $20 million when the casino’s main mortgage holder Carl Icahn said ‘I don’t think so’ towards the low-ball offer), also the Golden Nugget and poor ol’ Revel, which simply can’t appear to stand up, it’s therefore debt-heavy at the top.
Of course, you could wonder why a town whose casinos are doing this generally speaking awful within the net earnings department will be so eagerly courted by a lot of these days, and the answer that is obvious both the interactive gaming potential (you can’t get an online operator’s license without getting a land casino) also as the seemingly vague potential for the legalization of sports betting in Atlantic City’s land gambling enterprises, which includes been shot down more times than an Iranian war air plane over the White home.
Regardless, Miller claims their investment group is doing its diligence that is due about market. Despite Atlantic City’s crappy profit ledgers the past several years, he claims he sees ‘a lot of good on the horizon.’
Caesars Entertainment Rearranges Deck Furniture for Debt Restructuring
Caesars Entertainment is doing a lot of restructuring, but will it help their economically ship that is sinking?
Can this quantity of Titanic debt be salvaged from dragging the ship to the base associated with ocean that is financial? This is the question being asked as Caesars Entertainment Corp. put Planet Hollywood one of their kingpin Las Vegas Strip properties right into a new holding company, along side the Interactive Division and the still-being-built Horseshoe Casino Baltimore. The company has instructed its shareholders that they have only until Oct. 17th to get in for a stock fire sale to bring in $1.18 billion in much-needed cash infusions as well. And you thought your garage sales were busy.
Shareholders Should Buy Stocks First
The Securities and Exchange Commission (SEC) filing made by Caesars announces that shareholders are certain to get very first dibs on one share each of this new Caesars Acquisition Co. (CAC) for each and every share regarding the existing parent company they own. This restructuring is within the works since this past Spring, and ended up being formally approved by the Nevada Gaming Control Board in July.
Underneath the restructuring, the newly created CAC will be a partial owner of the additionally newly created Caesars Growth Partners, and along with Caesars Entertainment (are you dizzy yet?), the brand new entity will acquire Planet Hollywood, the Baltimore under-construction property, and Caesars Interactive Entertainment, which, of course, spearheads the World Series of Poker (WSOP) real money online poker brand that just lately established for Nevada Internet players.
Now you might think the point of all this fundraising is to pay down the company’s massive current debt, but evidently, they are studying the White home financials, because they do say the raised funds will go towards brand new casino jobs in the U.S., in addition to more online development, together with 888 Holdings, to obtain a few online casino internet sites up and rolling in New Jersey whenever that state goes online on November 26. They must be in a pissing contest with Obama for the greatest debt ceiling that is achievable.
Gambling’s Highest Debt Load
Think we’re kidding? Caesars has the dubious honor of keeping the casino industry’s highest-ever debt that is long-term at $23.5 billion. In early 2014, they will perform a refi of about $5 billion of that, and got about $200 million towards that amount in a stock purchase already.
This debtload that is somewhat scaryn’t appear to be deterring anyone from teaming up with the gaming behemoth though; Detroit-based Rock Gaming is in on a joint venture with Caesars to own and run the $400 million Horseshoe Baltimore once it’s completed and prepared to open in 2015. And Suffolk Downs Racetrack in Boston moved into partnership aided by the ongoing business as well, as they you will need to get their $1 billion casino project accepted and built in Boston in Massachusetts’ Battle for the Casino Giants game.
Looks even Caesars Deputy General Counsel Michael Cohen isn’t entirely sure about this restructuring gameplan, nonetheless.
‘Compared to our money structure, that is not a change that is big’ he told the Nevada Gaming Control Board about the organization’s spinoff concept if they signed down on the plan in July. ‘Caesars features a great deal of debt. We think it is manageable, but others disagree.