Baby Steps Towards Legalization At Last
Oversight Group Will Be Cabinet-Level
Buyers and Sellers Dance the Dance with Atlantic City Casinos
Everybody wants a bit of Atlantic City’s casinos these full days, it seems
Ah, the Atlantic Club in Atlantic City: the girl that everybody wants to rest with, but no body will marry. This nj-new Jersey land gaming joint keeps on finding brand new suitors, however, and now an one that is new popped up on the horizon: a local attorney-slash-entrepreneur, George Miller, who’s produced an investment group with all The Flynn Company CEO Kevin Flynn of Philadelphia. Apparently, this real-estate duo are eyeing all forms of East Coast gambling enterprises, with the target of firming something up before New 12 months’s 2014 strikes midnight in the clock.
Atlantic Club Simply One Contender
While Miller won’t come right away and say who is looking like are going to getting a diamond just yet, he did inform the Press of Atlantic City his team 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 made a bit more interesting in that both Miller and Flynn hold extremely small stakes in A caesars-run pennsylvania property; albeit only a 0.25% stake each. Press of Atlantic City interviewer Donald Wittkowski suggests that this minor alliance could assist the duo, as Caesars has four casinos in Atlantic City and might be prepared to part with one. You might recall that Caesars’ international debt-load is sky-high, and some cash right now might be above welcomed as a few of their notes are coming due in 2015. Rumors are that possibly Trump Plaza, Golden Nugget and Revel along side Caesars’ Showboat might all be getting glances that are sexy Miller and Flynn at this time.
A lot of Inventory Shared
It looks like it’s a sellers market these times, though; additionally in line to buy something in Atlantic City most likely to then get in place getting a gaming that is interactive for AC’s imminent Internet launch are outfits like PokerStars, possibly Kentucky’s Churchill Downs horse racing operation, as well as Philly’s SugarHouse casino owners are said to be looking to expand to the Atlantic City market. British operators 2UP Gaming is additionally reported become enthusiastic about AC, backed evidently by the unnamed mogul that is asian.
Among the properties letting it be known they could be available for the best cost are the now-infamous Atlantic Club, the Plaza (which killed a potential cope with the West Coast’s Meruelo Group for $20 million when the casino’s main mortgage holder Carl Icahn said ‘I do not think so’ towards the low-ball offer), as well as the Golden Nugget and poor ol’ Revel, which simply can not seem to stand up, it’s so debt-heavy during the top.
Needless to say, you might wonder why a town whose casinos are doing so generally speaking awful into the web profits department is being so eagerly courted by a lot of these days, and the answer that is obvious both the interactive gaming potential (you can’t obtain an online operator’s license without possessing a land casino) too as the seemingly vague potential for the legalization of sports betting in Atlantic City’s land casinos, which includes been shot down more times than an Iranian war air plane over the White House.
Regardless, Miller claims their investment group is doing its due diligence about that market. The past few years, he says he sees ‘a great deal of good in the horizon. despite Atlantic City’s crappy profit ledgers’
Caesars Entertainment Rearranges Deck Furniture for Debt Restructuring
Caesars Entertainment is doing a lot of restructuring, but does it assist their economically sinking ship?
Can this level of Titanic debt be salvaged from dragging the ship towards the base associated with ocean that is financial? That’s the question being asked as Caesars Entertainment Corp. put Planet Hollywood one of their kingpin Las Vegas Strip properties as a new holding company, along side the Interactive Division and the still-being-built Horseshoe Casino Baltimore. The company has instructed its shareholders they’ve only until Oct. seventeenth getting in on a stock fire sale to make $1.18 billion in much-needed cash infusions as well. And also you thought your storage sales were busy.
Shareholders Should Buy Stocks First
The Securities and Exchange Commission (SEC) filing created by Caesars announces that shareholders will get very first dibs on one share each of the new Caesars Acquisition Co. (CAC) for each share associated with the parent that is existing they own. This restructuring is in the works because this Spring that is past had been formally authorized by the Nevada Gaming Control Board in July.
The newly formed CAC will be a partial owner of the also newly created Caesars Growth Partners, and along with Caesars Entertainment (are you dizzy yet?), the new entity will own 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 recently launched for Nevada Internet players under the restructuring.
Now you might think the point of all this fundraising is to pay down the organization’s massive current debt, but evidently, they have been studying the White House financials, because they state the raised funds will go towards new casino tasks in the U.S., in addition to more online development, along with 888 Holdings, to obtain a few on-line casino sites up and rolling in New Jersey when that state goes online on November 26. They must be in a pissing competition with Obama for the highest achievable debt ceiling.
Gambling’s Highest Debt Load
Think we are kidding? Caesars has the dubious honor of holding the casino industry’s highest-ever long-lasting debt load at $23.5 billion. In early 2014, they will do a refi of about $5 billion of that, and got about $200 million towards that amount in a stock sale already.
This somewhat scary debtload doesn’t be seemingly 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 willing to start in 2015. And Suffolk Downs Racetrack in Boston has gone into partnership with all the business as well, as they make an effort to get their $1 billion casino project accepted and built in Boston in Massachusetts’ Battle regarding the Casino Giants game.
Tends even Caesars Deputy General Counsel Michael Cohen isn’t totally sure about this restructuring gameplan, nonetheless.
‘Compared to our money structure, that is not a big change,’ he told the Nevada Gaming Control Board about the organization’s spinoff concept once they signed down on the plan in July. ‘Caesars features a great deal of debt. We think it’s workable, but others disagree.