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 piece of Atlantic City’s casinos these days, it seems
Ah, the Atlantic Club in Atlantic City: the lady that everybody wants to sleep with, but nobody shall 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 team aided by The Flynn Company CEO Kevin Flynn of Philadelphia. Apparently, this estate that is real are eyeing all forms of East Coast casinos, with the goal of firming something up before New 12 months’s 2014 strikes midnight regarding the clock.
Atlantic Club Simply 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 group hasn’t eliminated the Atlantic Club 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 merely a 0.25% stake each. Press of Atlantic City interviewer Donald Wittkowski implies that this minor alliance could help the duo, as Caesars has four casinos in Atlantic City and may be willing 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 some of their records are coming due in 2015. Rumors are that possibly Trump Plaza, Golden Nugget and Revel along side Caesars’ Showboat might all be getting sexy glances from Miller and Flynn right now.
An abundance of Inventory Up for Grabs
It looks like it is a sellers market these days, though; additionally in line to buy something in Atlantic City likely to then get constantly in place to have a gaming that is interactive for AC’s imminent Internet launch are outfits like PokerStars, possibly Kentucky’s Churchill Downs horse racing operation, and even Philly’s SugarHouse casino owners are said to be trying to expand in to the Atlantic City market. Uk operators 2UP video Gaming is additionally reported become enthusiastic about AC, backed evidently by an unnamed Asian mogul.
On the list of properties letting it be known they are able to be available for the right price are the now-infamous Atlantic Club, 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 your low-ball offer), also the Golden Nugget and poor ol’ Revel, which simply can not seem to stand up, it’s therefore debt-heavy during the top.
Of course, you could wonder why a town whose casinos are doing so generally speaking awful in the web earnings division will be so eagerly courted by numerous 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 gambling enterprises, that has 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. The previous few years, he claims he views ‘a lot of good on 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 financially sinking ship?
Can this amount of Titanic debt be salvaged from dragging the ship to the bottom regarding the ocean that is financial? That’s the question being asked as Caesars Entertainment Corp. put Planet Hollywood one of their kingpin Las vegas, nevada Strip properties right into a new holding company, along with the Interactive Division and the still-being-built Horseshoe Casino Baltimore. The business has instructed its shareholders that they have only until Oct. seventeenth to obtain in for a stock fire sale to bring in $1.18 billion in much-needed cash infusions as well. And you also thought your garage sales were busy.
Shareholders Can Purchase Stocks First
The Securities and Exchange Commission (SEC) filing created by Caesars announces that shareholders can get first dibs on one share each of the brand new Caesars Acquisition Co. (CAC) for each share regarding the existing parent business they own. This restructuring is within the works since this past Spring, and was 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 the company down’s massive existing debt, but apparently, they are studying the White home financials, because they state the raised funds will go towards brand new casino projects in the U.S., as well as more online development, together with 888 Holdings, to obtain a few on-line casino internet 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 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 long-lasting financial obligation load at $23.5 billion. In early 2014, they will execute a refi of about $5 billion of that, and got about $200 million towards that amount in a stock sale 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 has gone into partnership aided by the company as well, as they attempt 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 totally sure about this casino-bonus-free-money.com restructuring gameplan, but.
‘Compared to our money structure, that isn’t a big change,’ he told the Nevada Gaming Control Board about the company’s spinoff concept if they signed down on the plan in July. ‘Caesars has a great deal of debt. We think it is workable, but others disagree.