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 no one shall marry. This New Jersey land gaming joint keeps on finding new suitors, however, and now a new one has popped through to the horizon: a local attorney-slash-entrepreneur, George Miller, who’s created an investment group because of The Flynn Company CEO Kevin Flynn of Philadelphia. Apparently, this real estate duo are eyeing all forms of East Coast gambling enterprises, with the target of firming something up before New 12 months’s 2014 strikes midnight regarding the clock.
Atlantic Club Simply One Contender
While Miller won’t come right away and state who is searching like they’ll certainly be getting a diamond just yet, he did tell the Press of Atlantic City his group hasn’t eliminated the Atlantic Club being a contender, but that they were ‘looking all over the place’ for just the spot that is right make their deal.
The situation is made a bit more interesting for the reason that both Miller and Flynn hold very small stakes in A pennsylvania that is caesars-run property albeit just a 0.25% 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 might 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 records 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.
A lot 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 an interactive gaming license for AC’s imminent Internet launch are outfits like PokerStars, possibly Kentucky’s Churchill Downs horse racing operation, and even Philly’s SugarHouse casino owners are reported to be trying to expand into the Atlantic City market. British operators 2UP Gaming is also reported to be enthusiastic about AC, backed evidently by the unnamed Asian mogul.
Among the list of properties allowing it to be known they might be readily available for the right 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 stated ‘I don’t think therefore’ to your low-ball offer), also the Golden Nugget and poor ol’ Revel, which simply can’t appear to stand up, it’s so debt-heavy at the top.
Of course, you may wonder why a town whose casinos are doing this generally speaking awful within the web profits department has been therefore eagerly courted by many these days, and the obvious response is both the interactive gaming potential (you can’t obtain an online operator’s license without getting a land casino) also as the seemingly vague potential for the legalization of sports betting in Atlantic City’s land casinos, which has been shot down more times than an Iranian war plane over the White home.
Regardless, Miller claims their investment group is doing its diligence that is due about market. Despite Atlantic City’s crappy revenue ledgers the previous couple of years, he states he sees ‘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 assist their economically sinking ship?
Can this quantity of Titanic debt be salvaged from dragging the ship towards the base of the financial ocean? That’s the question being asked as Caesars Entertainment Corp. put Planet Hollywood one of the 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 business has instructed its shareholders that they have only until Oct. 17th getting 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 Can Purchase Stocks First
The Securities and Exchange Commission (SEC) filing made by Caesars announces that shareholders are certain to get first dibs on one share each of the newest Caesars Acquisition Co. (CAC) for every share for the existing parent business they own. This restructuring is in the works because this past Spring, and ended up being formally authorized by the Nevada Gaming Control Board in July.
Underneath 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?), the new entity will have Planet Hollywood, the Baltimore under-construction property, and Caesars Interactive Entertainment, which, of course, spearheads the World Series of Poker (WSOP) a real income online poker brand that just recently 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 evidently, these are typically studying the White home financials, because they say the raised funds will go towards brand new casino projects in the U.S., in addition to more online development, in conjunction with 888 Holdings, to get a few online casino sites up and rolling in New Jersey whenever that state goes online on November 26. They must be in a pissing competition with Obama for the greatest achievable debt ceiling.
Gambling’s Highest Debt Load
Think we are kidding? Caesars has the dubious honor of holding 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 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 prepared to start in 2015. And Suffolk Downs Racetrack in Boston has gone into partnership because of the business as well, as they make an effort to obtain $1 billion casino project accepted and built in Boston in Massachusetts’ Battle of the Casino Giants game.
Looks even Caesars Deputy General Counsel Michael Cohen isn’t entirely sure about this restructuring gameplan, but.
‘Compared to our capital structure, that isn’t a big change,’ he told the Nevada Gaming Control Board about the company’s spinoff concept when they signed off on the plan in July. ‘Caesars has a complete great deal of debt. We think it is workable, but others disagree.