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 piece of Atlantic City’s casinos these full days, this indicates
Ah, the Atlantic Club in Atlantic City: the girl that everybody wants to sleep with, but no body will marry. This New Jersey land gaming joint keeps on finding brand new suitors, however, and now a new one has popped through to the horizon: a local attorney-slash-entrepreneur, George Miller, who’s produced an investment team with The Flynn Company CEO Kevin Flynn of Philadelphia. Apparently, this real estate duo are eyeing all forms of East Coast casinos, 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 say who is searching like are going to getting a diamond just yet, he did tell the Press of Atlantic City his team hasn’t eliminated the Atlantic Club as being a contender, but that they were ‘looking all over the spot’ for just the spot that is right make their deal.
The situation is manufactured a bit more interesting in that both Miller and Flynn hold extremely 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 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 significantly 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 at this time.
A lot of Inventory Shared
It looks like it is a sellers market these times, though; additionally in line to buy something in Atlantic City likely 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 seeking to expand to the Atlantic City market. Uk operators 2UP Gaming is also reported become interested in AC, backed evidently by an unnamed mogul that is asian.
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 so generally speaking awful in the web profits department has been therefore eagerly courted by so many these days, and the answer that is obvious both the interactive gaming potential (you can’t obtain an online operator’s license without purchasing a land casino) too as the seemingly vague potential for the legalization of sports betting in Atlantic City’s land gambling enterprises, which has been shot down more times than an Iranian war plane over the White home.
Regardless, Miller claims his investment group is doing its due diligence about it market. Despite Atlantic City’s crappy profit ledgers the past couple of years, he states he views ‘a great deal of good on the horizon.’
Caesars Entertainment Rearranges Deck Furniture for Debt Restructuring
Caesars Entertainment is doing a lot of restructuring, but can it assist their financially sinking ship?
Can this quantity of Titanic debt be salvaged from dragging the ship to your bottom for the economic ocean? This is the question being asked as Caesars Entertainment Corp. put Planet Hollywood one of their kingpin Las vegas, nevada Strip properties into a new company that is holding along side the Interactive Division and the still-being-built Horseshoe Casino Baltimore. The organization has instructed its shareholders they have only until Oct. seventeenth to get in for a stock fire sale to bring in $1.18 billion in much-needed cash infusions as well. And you also thought your storage sales were busy.
Shareholders Should Buy Stocks First
The Securities and Exchange Commission (SEC) filing created by Caesars announces that shareholders can get very first dibs on one share every one of the new Caesars Acquisition Co. (CAC) for every single share associated with the parent that is existing they own. This restructuring was within the works because this past Spring, and was formally authorized by the Nevada Gaming Control Board in July.
Underneath the restructuring, the newly formed CAC would have been 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 program, spearheads the World Series of Poker (WSOP) real money online poker brand that just lately established 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 are studying the White home financials, because they do say the raised funds will go towards brand new casino tasks in the U.S., as well as more online development, along with 888 Holdings, to acquire a few online casino web sites up and rolling in New Jersey when 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 long-lasting 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 purchase 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 run the $400 million Horseshoe Baltimore once it’s completed and ready to open in 2015. And Suffolk Downs Racetrack in Boston has gone into partnership using the company because well, as they attempt to get their $1 billion casino project accepted and built in Boston in Massachusetts’ Battle for the Casino Giants game.
Tends even Caesars Deputy General Counsel Michael Cohen isn’t completely sure about this restructuring gameplan, however.
‘Compared to our money structure, that is not a change that is big’ he told the Nevada Gaming Control Board about the organization’s spinoff concept once they signed down on the plan in July. ‘Caesars possesses complete lot of debt. We think it’s workable, but others disagree.