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 an item 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 will marry. This New Jersey land gaming joint keeps on finding brand new suitors, however, and now an one that is new popped through to the horizon: a local attorney-slash-entrepreneur, George Miller, who’s developed an investment group using The Flynn Company CEO Kevin Flynn of Philadelphia. Apparently, this real estate duo are eyeing all types of East Coast casinos, with the goal of firming something up before New Year’s 2014 strikes midnight on the clock.
Atlantic Club Just One Contender
While Miller won’t come right out and state who is looking like are going to getting a diamond just yet, he did inform the Press of Atlantic City their group hasn’t eliminated the Atlantic club player free spins Club as being a contender, but that they were ‘looking all over the spot’ for just the right spot to make their deal.
The situation is created a bit more interesting in that both Miller and Flynn hold really small stakes in A pennsylvania that is caesars-run property albeit just a 0.25per cent stake each. Press of Atlantic City interviewer Donald Wittkowski implies that this alliance that is minor assist the duo, as Caesars has four casinos in Atlantic City and might be prepared to part with one. You might 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 with Caesars’ Showboat might all be getting sexy glances from Miller and Flynn right now.
A great amount of Inventory Up for Grabs
It looks like it is a sellers market these days, though; additionally in line to buy something in Atlantic City most likely to then get in position getting 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 said to be looking to expand to the Atlantic City market. British operators 2UP Gaming is also reported to be enthusiastic about AC, backed evidently by an 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.
Of course, you could wonder why a town whose casinos are doing so generally speaking awful within the web profits division is being therefore eagerly courted by countless these days, and the obvious answer is both the interactive gaming potential (you can’t get an online operator’s license without buying a land casino) too as the seemingly vague potential for the legalization of sports betting in Atlantic City’s land gambling enterprises, which includes 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 profit ledgers the past several years, he says he views ‘a great deal of good on the horizon.’
Caesars Entertainment Rearranges Deck Furniture for Debt Restructuring
Caesars Entertainment is doing lots of restructuring, but will it help their financially sinking ship?
Can this number of Titanic debt be salvaged from dragging the ship to your base for the monetary ocean? That’s the question being asked as Caesars Entertainment Corp. put Planet Hollywood one of the kingpin Las Vegas Strip properties into a new holding company, 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 obtain in on a stock fire sale to bring in $1.18 billion in much-needed cash infusions as well. And you thought your garage sales were busy.
Shareholders Can Buy Stocks First
The Securities and Exchange Commission (SEC) filing created by Caesars announces that shareholders are certain to get first dibs on one share every one of this new Caesars Acquisition Co. (CAC) for every share associated with the parent that is existing they own. This restructuring was in the works because this Spring that is past had been officially 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 idea of all this fundraising is to pay 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 projects in the U.S., as well as more online development, together with 888 Holdings, to acquire 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 debt ceiling that is achievable.
Gambling’s Highest Debt Load
Think we are 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 will do a refi of about $5 billion of that, and got about $200 million towards that amount in a stock purchase already.
This debtload that is somewhat scaryn’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 operate 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 aided by the ongoing business since well, as they attempt to get their $1 billion casino project accepted and built in Boston in Massachusetts’ Battle associated with Casino Giants game.
Looks even Caesars Deputy General Counsel Michael Cohen isn’t entirely sure about this restructuring gameplan, however.
‘Compared to our capital structure, that’s not a change that is big’ he told the Nevada Gaming Control Board about the organization’s spinoff concept once they signed off on the plan in July. ‘Caesars has a lot of debt. We think it is manageable, but others disagree.