Baby Steps Towards Legalization At Last
Oversight Group Will Be Cabinet-Level
Purchasers and Sellers Dance the Dance with Atlantic City Casinos
Everybody wants a piece of Atlantic City’s casinos these days, it appears
Ah, the Atlantic Club in Atlantic City: your ex 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 through to the horizon: a local attorney-slash-entrepreneur, George Miller, who’s created 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 casinos, with the target of firming something up before New Year’s 2014 strikes midnight regarding the clock.
Atlantic Club Just One Contender
While Miller won’t come right away and state who is looking like are going to getting a diamond just yet, he did tell the Press of Atlantic City their team hasn’t eliminated the Atlantic Club as being a contender, but that they were ‘looking all over the spot’ for just the right spot to make their deal.
The situation is manufactured a bit more club player login interesting for the reason that both Miller and Flynn hold extremely small stakes in A caesars-run pennsylvania property; albeit just 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 may 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 is a sellers market these days, though; also in line to buy something in Atlantic City almost certainly to then get in position getting a gaming that is interactive for AC’s imminent Internet launch are clothes like PokerStars, possibly Kentucky’s Churchill Downs horse racing operation, and even Philly’s SugarHouse casino owners are considered looking to expand to the Atlantic City market. British operators 2UP video Gaming is additionally reported become interested in AC, backed evidently by the unnamed Asian mogul.
The Plaza (which killed a potential deal with the West Coast’s Meruelo Group for $20 million when the casino’s main mortgage holder Carl Icahn said ‘I don’t think so’ to the low-ball offer), as well as the Golden Nugget and poor ol’ Revel, which just can’t seem to stand up, it’s so debt-heavy at the top among the properties letting it be known they could be available for the right price are the now-infamous Atlantic Club.
Needless to say, you may wonder why a town whose casinos are doing this generally speaking awful in the web profits department has been so eagerly courted by so many these days, and the apparent response is both the interactive gaming potential (you can’t get an online operator’s license without getting 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 plane over the White House.
Regardless, Miller claims his investment group is doing its diligence that is due about market. The previous few years, he says he views ‘a lot of good regarding the horizon. despite Atlantic City’s crappy profit ledgers’
Caesars Entertainment Rearranges Deck Furniture for Debt Restructuring
Caesars Entertainment is doing lots of restructuring, but does it help their economically sinking ship?
Can this quantity of Titanic debt be salvaged from dragging the ship to the base regarding the economic ocean? That is the question being asked as Caesars Entertainment Corp. put Planet Hollywood one of their kingpin Las vegas, nevada Strip properties into a new holding company, along side the Interactive Division and the still-being-built Horseshoe Casino Baltimore. The business has instructed its shareholders that they have only until Oct. 17th getting in on a stock fire sale to make $1.18 billion in much-needed money infusions as well. And you also thought your storage sales were busy.
Shareholders Can Buy Stocks First
The Securities and Exchange Commission (SEC) filing created by Caesars announces that shareholders can get very first dibs on one share every one of this new Caesars Acquisition Co. (CAC) for each and every share associated with parent that is existing they own. This restructuring is in the works because this past Spring, and ended up being officially 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 idea of all this fundraising is to pay the company down’s massive current debt, but evidently, they’re studying the White House financials, because they say the raised funds will go towards new casino tasks in the U.S., as well as more online development, in conjunction with 888 Holdings, to acquire a few on-line casino sites up and rolling in New Jersey whenever that state goes online on November 26. They must be in a pissing competition with Obama for the greatest debt ceiling that is achievable.
Gambling’s Highest Debt Load
Think we are joking? 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 shall do a refi of about $5 billion of that, and got about $200 million towards that amount in a stock purchase already.
This somewhat scary debtload doesn’t appear to be deterring anybody 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 has gone into partnership aided by the company as well, as they try to get their $1 billion casino project accepted and built in Boston in Massachusetts’ Battle for the Casino Giants game.
Seems even Caesars Deputy General Counsel Michael Cohen isn’t totally sure about this restructuring gameplan, but.
‘Compared to our capital structure, that isn’t a change that is big’ he told the Nevada Gaming Control Board about the business’s spinoff concept if they signed down on the plan in July. ‘Caesars has a lot of debt. We think it is manageable, but others disagree.