Baby Steps Towards Legalization At Last
Oversight Group Will Be Cabinet-Level
Purchasers and Sellers Dance the Dance with Atlantic City gambling enterprises
Everybody wants a bit 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 will marry. This nj-new Jersey land gaming joint keeps on finding brand new suitors, however, and now a brand new one has popped up on the horizon: a local attorney-slash-entrepreneur, George Miller, who’s developed an investment team aided by The Flynn Company CEO Kevin Flynn of Philadelphia. Apparently, this real estate duo are eyeing all kinds of East Coast gambling enterprises, with the target of firming something up before New Year’s 2014 strikes midnight regarding the clock.
Atlantic Club Simply One Contender
While Miller won’t come right out and state who is looking like they’ll be getting a diamond just yet, he did inform the Press of Atlantic City their group hasn’t eliminated the Atlantic Club as being a contender, but that they were ‘looking all over the area’ for just the right spot to make their deal.
The situation is manufactured a bit more interesting for the reason that both Miller and Flynn hold very small stakes in A caesars-run pennsylvania property; albeit merely a 0.25per cent stake each. Press of Atlantic City interviewer Donald Wittkowski suggests that this alliance that is minor assist the duo, as Caesars has four casinos in Atlantic City and may be willing to part with one. You may recall that Caesars’ international debt-load is sky-high, and some cash right now might be a lot more than welcomed as a few 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 right now.
An abundance of Inventory Shared
It looks like it is a sellers market these days, however; additionally 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 outfits like PokerStars, possibly Kentucky’s Churchill Downs horse racing operation, as well as Philly’s SugarHouse casino owners are reported to be trying lucky nugget casino microgaming to expand to the Atlantic City market. British operators 2UP Gaming is also reported become thinking about AC, backed apparently 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 might wonder why a town whose casinos are doing this generally awful within the web earnings department is being therefore 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 owning 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 his investment group is doing its due diligence about any of it market. The past few years, he claims he sees ‘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 plenty of restructuring, but can it assist their financially ship that is sinking?
Can this quantity of Titanic debt be salvaged from dragging the ship towards the bottom 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 into a new company that is holding along with the Interactive Division and the still-being-built Horseshoe Casino Baltimore. The business has instructed its shareholders they have only until Oct. 17th to obtain in on a stock fire sale to make $1.18 billion in much-needed cash infusions as well. And you also thought your garage sales were busy.
Shareholders Should Buy Stocks First
The Securities and Exchange Commission (SEC) filing made by Caesars announces that shareholders will get very first dibs on one share every one of this new Caesars Acquisition Co. (CAC) for every single share for the parent that is existing they own. This restructuring has been in the works since this Spring that is past 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 straight down the organization’s massive existing debt, but apparently, they are studying the White home financials, because they say the raised funds will go towards new casino jobs in the U.S., in addition to more online development, together with 888 Holdings, to get a few online casino web 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-term financial obligation load at $23.5 billion. In early 2014, they shall execute a refi of about $5 billion of that, and got about $200 million towards that amount in a stock sale already.
This somewhat frightening 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 operate the $400 million Horseshoe Baltimore once it’s completed and ready to open in 2015. And Suffolk Downs Racetrack in Boston went into partnership utilizing the ongoing company because well, as they attempt to obtain $1 billion casino project accepted and built in Boston in Massachusetts’ Battle associated with the Casino Giants game.
Seems even Caesars Deputy General Counsel Michael Cohen isn’t entirely sure about this restructuring gameplan, but.
‘Compared to our capital structure, that is not a big change,’ he told the Nevada Gaming Control Board about the business’s spinoff concept when they signed off on the plan in July. ‘Caesars possesses great deal of debt. We think it’s workable, but others disagree.