The humility with which Jackie Gaughan did business would be un-thought-of in today’s casino world. He’d come to work through the front door and his “office” was a hotel room adapted for the purpose. At various times, Jackie owned all or part of at least 12 casinos, and was an active and visible presence at every one, every day. His philanthropy and civic spirit were comparably widespread. Not only did he preside over the Las Vegas Convention & Visitors Authority, he was also on the board of review for Eagle Scouts. In 2002, he launched the Boys & Girls Clubs of Las Vegas. His helpfulness also manifested itself in smaller ways: Gaughan was also known for keeping Continued >>
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 >>