Caesars Entertainment posted a staggering, $1.76 billion loss (-$12.83/share), as some analysts fret that the recent fire sale of four casinos to Caesars Growth Partners may starve parent company Caesars Entertainment Operating Co. of cash flow. Meanwhile, Big Caesars has to decide whether to take the $2.2 billion it was paid by Little Caesars (Caesars Growth Properties) and reduce debt or try to grow the company faster than the bill collectors can keep pace. “This transaction is clearly negative from a leverage perspective … due to the loss of [cash flow] from the sale of the three assets,” said one respected analyst.
If you’re a bondholder in Caesars, prepare to take a bath. “The company is positioning it so that there’s really not a lot of options for the bondholders, and therefore the only way out is to do a distressed-debt exchange. They’re taking some of these assets and moving them to high ground, Continued >>
Bad weather is being blamed for dismal attendance figures at St. Louis-area casinos. Those on the Missouri side were down 11%, while Casino Queen in East St. Louis and Alton Belle were off 17% at the turnstile. Statewide, revenue was down 7%, with the St. Louis market much more adversely affected than Kansas City. In the former, Pinnacle Entertainment‘s Lumiere Place slipped 12% while its River City fell only 2%. Pinnacle’s St. Charles casino was down 8% but Penn National Gaming‘s nearby Hollywood St. Louis dropped 13%, good enough for the #1 and #2 top-grossing spots in the Show-Me State, respectively. Nobody’s fall was as dramatic as that of Isle of Capri Casinos‘ Cape Girardeau property, down 27% and ruining Isle’s month. The company’s other results were a mixture of small declines and a 2% uptick in Boonville.
Pinnacle’s Ameristar Kansas City (-4%) topped that market. Harrah’s North Kansas City (-3%) grossed Continued >>
“Recreational horse racing to me is more appealing than recreational pot.” So says one of the backers of expanded gambling in Colorado, state Rep. Don Coram (R). “We’re opposed because the way the initiative is written it gives the owner of Arapahoe Park a five-year monopoly on Front Range gaming in Colorado,” responds Colorado Gaming Association Executive Director Lois Rice. A ballot initiative would call for a minimum of 2,500 slots per racino. (Colorado’s biggest casino has 1,500.) The state has banked $1.3 billion in gaming taxes over the last 20 years, although Colorado was one of the first states to suffer from saturation.
The ballot initiative is a creature of Twin River Worldwide Holdings Inc., owner of the eponymous Rhode Island casino. Under it and another initiative, racino status would eventually be extended to two other tracks yet to be built. ”Would they be in favor of expansion of gaming at a facility that already has wagering? That’s a question we thought there is value in putting to the Colorado voters,” asks Twin River’s Patti Doyle. In return, the state and locality would receive Continued >>