Caesars’ wheel of pain

By David McKee ~ March 3rd, 2015 @ 2:30 pm 3 Comments »

“Loveman ‘fascinated’ by complexities of High Roller,” read one of today’s headlines. Perhaps he ought to be more fascinated by the complexities of Caesars Entertainment‘s Linq revisedbankruptcy, of which he is the undisputed architect. The company announced quarterly earnings yesterday, losing a mere billion dollars compared to last year’s $1.76 billion, helped by $9 million in unspecified cost cuts. The blow was softened by a 6% increase in revenue, though not much of that was attributable to gambling win, up 2%. Dining and drinking (+9%) and hotel rooms (+5%) were stronger drivers of financial performance. If there’s one thing Caesars has been successful at, it’s been in rebranding the “Four Corners” of the Las Vegas Strip as a dining/shopping/sightseeing destination, as the quarterly figures imply.

Caesars also credited “continuing strength in the company’s interactive business, new Continued >>

New problem for Straub; Broad casino push in Florida

By David McKee ~ March 3rd, 2015 @ 12:51 pm No Comments »

Whenever you think the Revel saga is done, a new complexity arises. Glenn Straub‘s $82 million purchase is set to be ruled upon in bankruptcy court tomorrow. But, slipping over the revel-resort-in-atlantic-citytransom at the last minute come Leo Pustilnikov and fellow developer Isek Shomof, brandishing $80 million. While Straub has placed $82 million in escrow, Pustilnikov and Shomof are making “an offer of funds.” Ooooooh, an offer of funds! How exciting. The duo argues that their seemingly lowball offer outdoes Straub’s because $10 million of his $82 million in cash comes from a forfeited deposit on his (since superseded) $95 million bid. They must be mighty enamored of Revel, since they’re making a purchase offer without ever having seen the place.

Shomof, “a prominent redeveloper of older buildings in Continued >>

Macao in freefall; A RAWA deal

By David McKee ~ March 3rd, 2015 @ 11:27 am No Comments »

Sheldon Adelson can call Macao‘s doldrums “cyclical” until he’s blue in the face but there’s no mistaking that the gambling enclave is having serious problems. Actually, that’s a bit of an Venetian Macaounderstatement when February revenue falls 49%. VIP play is especially hard to find, down 60% in sheer volume and 56.5% in revenue. Las Vegas Sands took an especially heavy hit, its VIP revenue down 66%. MGM Grand Paradise took a 59% haircut and Wynn Macau was walloped worst of all, its VIP revenue falling 70%. “During a recent visit … to four of the city’s glitziest casinos, VIP rooms were mostly desolate,” reports Reuters.

You can get on a conference call with Wall Street analysts and Continued >>

First big hurdle in Indiana cleared

By David McKee ~ March 2nd, 2015 @ 5:02 pm No Comments »

Both the Indiana state Senate and Gov. Mike Pence (R) could still nix the deal, but the Indiana House of Representatives voted 76-19 to put riverboat casinos ashore and OK live dealers at the state’s Indiana Grand and Hoosier Park racinos. Pence is hung up on the CasinoAztarlive-dealer provision, which he incomprehensibly deems an “expansion” of gambling in the state. Maybe it will have to be sacrificed to get the other casinos off the rivers, something that should have been done years ago. (God forbid it should take a calamitous tornado to open Pence’s eyes.)

Referring to the landslide vote for the bill, state Rep. Tom Dermody (R) held out hope of changing Pence’s mind, saying,  Continued >>

Further Reading

Caesars’ wheel of pain

New problem for Straub; Broad casino push in Florida

Macao in freefall; A RAWA deal

First big hurdle in Indiana cleared

Caesars quits Ohio; Adelson’s Iran problem

Straub’s new plan for Revel; Elaine Wynn gets rude treatment

Las Vegas’ robust January; Measles in a casino

Midwest casino follies

Could Station go public?; Straub buys Revel again

Macao casinos squeezed again; Isle’s clean sweep

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