Baby Steps Towards Legalization At Last
Oversight Group Will Be Cabinet-Level
Buyers and Sellers Dance the Dance with Atlantic City Casinos
Everybody wants an item of Atlantic City’s casinos these full days, this indicates
Ah, the Atlantic Club in Atlantic City: the girl that everybody wants to rest with, but nobody will marry. This New Jersey land gaming joint keeps on finding new suitors, however, and now an one that is new 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 property duo are eyeing all types of East Coast casinos, with the target of firming something up before New 12 months’s 2014 strikes midnight on the clock.
Atlantic Club Just One Contender
While Miller won’t come right out and say 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 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 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 implies that this alliance that is minor help 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 more than welcomed as a number 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 sexy glances from Miller and Flynn right now.
A lot of Inventory Up for Grabs
It looks like it’s a sellers market these times, though; also in line to buy something in Atlantic City likely to then get constantly in place to get an interactive video gaming license 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 considered trying to expand to the Atlantic City market. Uk operators 2UP video Gaming is also reported become interested in AC, backed apparently by the 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 may wonder why a town whose casinos are doing so generally speaking awful within the web earnings division has been therefore eagerly courted by a lot of these days, and the apparent 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, which includes been shot down more times than an Iranian war air plane over the White home.
Regardless, Miller claims his investment group is doing its due diligence about that market. Despite Atlantic City’s crappy revenue ledgers the past few years, he states he sees ‘a lot of good in the horizon.’
Caesars Entertainment Rearranges Deck Furniture for Debt Restructuring
Caesars Entertainment is doing lots of restructuring, but will it assist their financially ship that is sinking?
Can this level of Titanic debt be salvaged from dragging the ship to the bottom associated with economic ocean? This is the question being asked as Caesars Entertainment Corp. put Planet Hollywood one of the kingpin Las Vegas Strip properties right into a new company that is holding along side the Interactive Division and the still-being-built Horseshoe Casino Baltimore. The company has instructed its shareholders they’ve only until Oct. seventeenth to get in for 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 Should Buy Stocks First
The Securities and Exchange Commission (SEC) filing made by Caesars announces that shareholders can get very first dibs on one share all of the newest Caesars Acquisition Co. (CAC) for each share of the existing parent business they own. This restructuring has been in the works since this Spring that is past had been formally approved by the Nevada Gaming Control Board in July.
Underneath the restructuring, the newly created CAC would have been a partial owner of the additionally newly created Caesars Growth Partners, and along with Caesars Entertainment (are you dizzy yet?), the brand new entity will obtain Planet Hollywood, the Baltimore under-construction property, and Caesars Interactive Entertainment, which, of program, spearheads the World Series of Poker (WSOP) real cash online poker brand that recently 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 evidently, they have been studying the White home financials, because they do 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 obtain a few online casino internet 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 greatest 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 debt load 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 somewhat frightening debtload doesn’t be seemingly deterring anybody 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 open in 2015. And Suffolk Downs Racetrack in Boston moved into partnership with all the ongoing business as well, as they you will need 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, but.
‘Compared to our capital structure, that is not a big change,’ he told the Nevada Gaming Control Board about the organization’s spinoff concept when they signed down on the plan in July. ‘Caesars features a great deal of debt. We think it is manageable, but others disagree.