Baby Procedures 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 full days, it appears
Ah, the Atlantic Club in Atlantic City: the girl that everybody wants to sleep 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 through to the horizon: a local attorney-slash-entrepreneur, George Miller, who’s created an investment team with all The Flynn Company CEO Kevin Flynn of Philadelphia. Apparently, this real estate duo are eyeing all types of East Coast gambling enterprises, with the target 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 out and say who is searching like they’ll be getting a diamond just yet, he did inform the Press of Atlantic City his group hasn’t eliminated the Atlantic Club as a contender, but that they were ‘looking all over the area’ for just the right spot to make their deal.
The situation is made a bit more interesting in that both Miller and Flynn hold really 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 assist the duo, as Caesars has four casinos in Atlantic City and may be prepared to part with one. You may recall that Caesars’ international debt-load is sky-high, and some cash right now might be more than welcomed as some 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 glances that are sexy Miller and Flynn right now.
A lot of Inventory Shared
It looks like it is a sellers market these times, though; also in line to buy something in Atlantic City most 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, and also Philly’s SugarHouse casino owners are considered looking to expand to the Atlantic City market. British operators 2UP Gaming is additionally reported become thinking about AC, backed apparently by an unnamed Asian mogul.
Among the properties letting it be known they are able to be available for the right cost are the now-infamous Atlantic Club, the Plaza (which killed a potential handle the western Coast’s Meruelo Group for $20 million when the casino’s main mortgage holder Carl Icahn said ‘I don’t think therefore’ towards the low-ball offer), also the Golden Nugget and poor ol’ Revel, which simply can not seem to stand up, it’s so debt-heavy during the top.
Of course, you may wonder why a town whose casinos are doing so generally awful in the web earnings division will be so eagerly courted by many these days, and the answer that is obvious both the interactive gaming potential (you can’t get an online operator’s license without having a land casino) also 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 their investment group is doing its due diligence about this market. Despite Atlantic City’s crappy revenue ledgers the previous few years, he states he views ‘a lot of good regarding the horizon.’
Caesars Entertainment Rearranges Deck Furniture for Debt Restructuring
Caesars Entertainment is doing a lot of restructuring, but can it help their financially sinking ship?
Can this amount of Titanic debt be salvaged from dragging the ship to the bottom associated with the monetary ocean? That is the question being asked as Caesars Entertainment Corp. put Planet Hollywood one of their kingpin Las Vegas Strip properties in to a new holding company, along side the Interactive Division and the still-being-built Horseshoe Casino Baltimore. The organization has instructed its shareholders they have only until Oct. 17th to have in on a stock fire sale to generate $1.18 billion in much-needed money infusions as well. And you thought your garage sales were busy.
Shareholders Can Purchase Stocks First
The Securities and Exchange Commission (SEC) filing created by Caesars announces that shareholders will get very first dibs on one share all of the latest Caesars Acquisition Co. (CAC) for every share for the parent that is existing they own. This restructuring is within the works since this Spring that is past had been formally approved 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 evidently, these are typically studying the White home financials, because they say the raised funds will go towards brand new casino tasks in the U.S., in addition to more online development, along 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 contest with Obama for the greatest debt ceiling that is achievable.
Gambling’s Highest Debt Load
Think we’re joking? Caesars has the dubious honor of holding the casino industry’s highest-ever long-lasting financial obligation load 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 debtload that is somewhat scaryn’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 operate the $400 million Horseshoe Baltimore once it’s completed and ready to start in 2015. And Suffolk Downs Racetrack in Boston has gone into partnership because of the company as well, as they try to manage to get thier $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, nevertheless.
‘Compared to our capital 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 possesses great deal of debt. We think it’s workable, but others disagree.