A camel is a horse designed by a committee, the saying goes, and The Cosmopolitan of Las Vegas resembles nothing so much as a camel — and Deutsche Bank executives are accused of dabbling in its design. If Bloomberg News‘ sources are correct, Deutsche Bank has tired of The Cosmo and is taking its dromedary to the bazaar. The bank would endure a severe haircut on the resale, marking The Cosmo down to $2 billion or maybe even $1.5 billion. That will only begin to cover a $3.5 billion loan that Deutsche Bank made to its own, Cosmo-owning subsidiary, Nevada Property 1. (The structure of deals within the casino industry sometimes veers into surrealism.)
But who will buy, especially as the Cosmo continues to bleed red ink? MGM Resorts International has often been mooted as a potential acquirer, especially Continued >>
The American Gaming Association‘s new president demonstrates his dynamic style and outlines his priorities.
Anti-gambling forces in Massachusetts gained an ally yesterday when attorney general candidate Maura Healey (D) came out against casinos and for the repeal of their enabling legislation. This puts her at odds with Attorney General Martha Coakley (D), who holds that to reverse course at this point would be an illegal taking of contractual property. Healey’s opponent, Warren Tolman (R) opposes repeal. Arguing against Coakley, Healey wrote, “The opinion stated that it is improper to shut down the licensing process now that several casino operators have applied. But voters made a decision to shut down the greyhound tracks with a ballot question and that was an industry that had been running for years.” She reasons that casino operators should have been prepared to get kicked out at any time.
Singing from the liberal do-gooder hymnal, Healey blogged, “Casinos don’t lay a foundation for diverse economies, they take over.” If her allies lose in court, Healey wants casinos to pay for the best lawyers available, so that they can be policed. She also promises to put teams of investigators on Continued >>