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 full days, it seems
Ah, the Atlantic Club in Atlantic City: the lady that everybody wants to rest with, but no one 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 created an investment team with all The Flynn Company CEO Kevin Flynn of Philadelphia. Apparently, this estate that is real are eyeing all types of East Coast gambling enterprises, with the goal 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 his group hasn’t eliminated the Atlantic Club as a contender, but that they were ‘looking all over the area’ for just the spot that is right make their deal.
The situation is created a bit more interesting for the reason that both Miller and Flynn hold really small stakes in A pennsylvania that is caesars-run property albeit just 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 could be prepared to part with one. You may recall that Caesars’ international debt-load is sky-high, and some cash right now might be significantly more than welcomed as a number 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 glances that are sexy Miller and Flynn at this time.
Plenty of Inventory Up for Grabs
It looks like it is a sellers market these days, though; also in line to buy something in Atlantic City most likely to then get in place to obtain a gaming that is interactive for AC’s imminent Internet launch are outfits like PokerStars, possibly Kentucky’s Churchill Downs horse racing operation, and also Philly’s SugarHouse casino owners are considered trying to expand into the Atlantic City market. Uk operators 2UP Gaming is additionally reported to be thinking about AC, backed apparently by the unnamed Asian mogul.
Among the list of properties letting it be known they are able to be readily available for the right cost 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), along with the Golden Nugget and poor ol’ Revel, which simply can’t seem to stand up, it’s therefore debt-heavy during the top.
Needless to say, you may wonder why a town whose casinos are doing this generally speaking awful within the web earnings department will be therefore eagerly courted by countless these days, and the obvious response is both the interactive gaming potential (you can’t obtain an online operator’s license without having 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 plane over the White home.
Regardless, Miller claims their investment group is doing its due diligence about that market. The past few years, he claims golden goddes free slots he sees ‘a lot of good in 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 ship that is sinking?
Can this level of Titanic debt be salvaged from dragging the ship to the base regarding the economic ocean? This 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 with the Interactive Division and the still-being-built Horseshoe Casino Baltimore. The business has instructed its shareholders they’ve only until Oct. seventeenth getting in on 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 Should Buy Stocks First
The Securities and Exchange Commission (SEC) filing made by Caesars announces that shareholders will get first dibs on one share all of the brand new Caesars Acquisition Co. (CAC) for every single share for the existing parent business they own. This restructuring was in the works since this past Spring, and ended up being officially authorized by the Nevada Gaming Control Board in July.
Beneath the restructuring, the newly formed CAC will be a partial owner of the additionally newly created Caesars Growth Partners, and along with Caesars Entertainment (are you dizzy yet?), this new entity will obtain Planet Hollywood, the Baltimore under-construction property, and Caesars Interactive Entertainment, which, of course, spearheads the World Series of Poker (WSOP) real cash online poker brand that just lately launched for Nevada Internet players.
Now you might think the point of all this fundraising is to pay the company down’s massive existing debt, but apparently, they have been studying the White House financials, because they state the raised funds will go towards brand 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 highest achievable debt ceiling.
Gambling’s Highest Debt Load
Think we’re kidding? 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 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 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 ready to start in 2015. And Suffolk Downs Racetrack in Boston has gone into partnership utilizing the ongoing business since well, as they make an effort to get their $1 billion casino project accepted and built in Boston in Massachusetts’ Battle of the Casino Giants game.
Tends even Caesars Deputy General Counsel Michael Cohen isn’t entirely 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 business’s spinoff concept once they signed down on the plan in July. ‘Caesars features a great deal of debt. We think it is workable, but others disagree.