Our long national nightmare — otherwise known as the Caesars Entertainment bankruptcy — will be with us a lot longer: six months, to be precise. Caesars has requested,
and is expected to get, an extension until Nov. 15 to file its own reorganization plan without fear of it being superseded by rival parties. This is a relatively routine move and Judge Benjamin Goldgar is expected to grant Caesars’ request. “These Chapter 11 cases are also among the largest and most complex ever filed,” stated Caesars, in something of an understatement. The company also says it wants to wait for the outcome of an investigation into the company’s ledger-demain, whereby assets were shuffled between some of Caesars’ 173 subsidiaries.
The stock market reacted adversely to the news. TheStreetRatings went so far as to put a “sell” recommendation (very rare) on Caesars stock, citing “weak operating cash flow and generally disappointing historical performance in the stock itself … Despite any rallies, the net result is that it is down by 32.58%.”
On another front, Continued >>
In what may come as bad news to casino operators, the Macao government is placing a quota on the number of mainland visitors the gaming enclave will allow per year: 21 million. On the other hand, the government is pivoting towards a greater appeal to international visitors, giving with one hand what it takes away with the other. Having proposed this tourism cap, the Macanese government must send it to Peking for approval. Macao’s government is aiming for a 2:1 ratio of domestic to overseas visitors. Rationalized Secretary for Social Affairs & Culture Alexis Tam, “during the Chinese New Year there were 147,000 visitors per day. This number is well above the city’s capacity according to the [Institute for Tourism Studies] study and if this trend continues the quality of life of residents will be affected.”
The local government also remains set on Continued >>
Although they enjoyed a same-store increase of 1% last month, Atlantic City casinos pulled in 14% less than last year at this time, grossing $191 million (more than some entire Midwestern states, it should be noted). Twelve percent less coin-in at the slots drove a 14.5% revenue decrease, while a sharp (22%) diminution in table play produced an 18% declivity. Borgata — grossing $56 million — spectacularly outperformed the slot market, with coin-in up 16% and table revenue off only 3.5%. Luck wasn’t with the house, as table play was incrementally up. Gambling revenue rose 9% for the month. Borgata also enjoyed the lion’s share (32%) of $13 million in Internet-gaming monies. Tropicana Atlantic City (23%) passed both the Golden Nugget (22.5%, but ascending rapidly) and Caesars Interactive (21%) for second place, as cyber-gambling continues to gain acceptance.
Over at Trump Taj Mahal, CEO Bob Griffin continues to Continued >>