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 bit of Atlantic City’s casinos these days, it seems
Ah, the Atlantic Club in Atlantic City: your ex that everybody wants to rest the lucky nugget paris with, but nobody will marry. This nj-new Jersey land gaming joint keeps on finding new suitors, however, and now a brand new one has popped through to the horizon: a local attorney-slash-entrepreneur, George Miller, who’s developed an investment group because of The Flynn Company CEO Kevin Flynn of Philadelphia. Apparently, this estate that is real are eyeing all types of East Coast casinos, with the goal of firming something up before New 12 months’s 2014 strikes midnight on the clock.
Atlantic Club Simply One Contender
While Miller won’t come right away and state who is looking like they’ll certainly be getting a diamond just yet, he did inform the Press of Atlantic City his team hasn’t eliminated the Atlantic Club being a contender, but that they were ‘looking all over the place’ for just the right spot to make their deal.
The situation is created a bit more interesting in that both Miller and Flynn hold very small stakes in A caesars-run pennsylvania property; albeit just a 0.25per cent 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 may recall that Caesars’ international debt-load is sky-high, and some cash right now might be over 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 glances that are sexy Miller and Flynn right now.
An abundance of Inventory Shared
It looks like it’s a sellers market these days, however; also in line to buy something in Atlantic City almost certainly to then get constantly in place to obtain 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 trying to expand into the Atlantic City market. British operators 2UP video Gaming is also reported become thinking about AC, backed evidently by the unnamed Asian mogul.
Among the properties letting it be known they might be available for the proper price are the now-infamous Atlantic Club, the Plaza (which killed a potential deal with the western Coast’s Meruelo Group for $20 million when the casino’s main mortgage holder Carl Icahn said ‘I do not think therefore’ to the low-ball offer), as well as the Golden Nugget and poor ol’ Revel, which just can not appear to stand up, it’s therefore debt-heavy at the top.
Needless to say, you could wonder why a town whose casinos are doing so generally speaking awful in the net profits division will be so eagerly courted by numerous these days, and the obvious response is both the interactive gaming potential (you can’t get 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 casinos, that has 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 it market. Despite Atlantic City’s crappy profit ledgers the previous several years, he says he sees ‘a lot of good regarding the horizon.’
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 level of Titanic debt be salvaged from dragging the ship towards the bottom of this financial 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 that they have only until Oct. 17th getting in on a stock fire sale to bring in $1.18 billion in much-needed money infusions as well. And you thought your storage sales were busy.
Shareholders Can Buy Stocks First
The Securities and Exchange Commission (SEC) filing made by Caesars announces that shareholders can get very first dibs on one share each of the latest Caesars Acquisition Co. (CAC) for every single share for the parent that is existing they own. This restructuring is in the works because this past Spring, and had been officially authorized by the Nevada Gaming Control Board in July.
Underneath the restructuring, the newly formed CAC is a partial owner of the also newly created Caesars Growth Partners, and along with Caesars Entertainment (are you dizzy yet?), the newest entity will own Planet Hollywood, the Baltimore under-construction property, and Caesars Interactive Entertainment, which, of program, spearheads the World Series of Poker (WSOP) a real income online poker brand that recently launched for Nevada Internet players.
Now you might think the point of all this fundraising is to pay down the company’s massive existing debt, but evidently, these are typically studying the White House financials, because they state the raised funds will go towards new casino projects in the U.S., in addition to more online development, together with 888 Holdings, to acquire a few online casino 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 achievable debt ceiling.
Gambling’s Highest Debt Load
Think we’re 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 sale already.
This somewhat frightening debtload doesn’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 ready to open in 2015. And Suffolk Downs Racetrack in Boston moved into partnership utilizing the ongoing company as well, as they attempt 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 completely sure about this restructuring gameplan, nevertheless.
‘Compared to our capital structure, that isn’t a big change,’ he told the Nevada Gaming Control Board about the business’s spinoff concept when they signed down on the plan in July. ‘Caesars includes a great deal of debt. We think it is manageable, but others disagree.