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and is expected to get, an extension until Nov. 15 to file its own reorganization plan without fear of it being superseded by rival parties.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, Caesars is expected to have to pony up a fine but avoid criminal charges in a money-laundering probe conducted by the Treasury Department. Nor will any Caesars employee have to be sacrificed to placate the displeasure of the government. Nobody’s talking for attribution but all parties involved are believed to be in the final stages of negotiating a deal. Since a fine counts as unsecured debt, Caesars might even be able to get out of paying all of it. According to Reuters sources, “The investigation stemmed in part from failures to properly police sports book activity and prevent wagers being placed by illegal betting rings.”
* Sheldon Adelson is well on his way to making Macao a subsidiary of Las Vegas Sands. Not content with having the largest number of hotel rooms in the market, he wants 2,500 more 
(but no additional casinos), so that Sands China can host as many as 25,000 conventioneers at one swipe. Adelson said his company was having to turn away groups of that size, particularly in the healthcare field. He also chafed a bit a government-imposed price controls, saying, “We’re building The Parisian [pictured], although the rooms will be four-star size, we’ll be selling them at three-star prices. That’s what the Macau government wants.”
Some analysts think Adelson might be bumping up against the limit on demand for rooms in Macao. Noting a 9% decline in hotel guests (even with price cuts) early this year, as gambling revenues tumbled, Morgan Stanley boffins wrote, “This could mean that hotel demand is not unlimited. Opening of 1,400 new rooms by Galaxy [Entertainment] could result in cannibalisation and promotional war.” The agency hedged its bet by saying that greater capacity could translate into more overnight stays, although we’ve been hearing that refrain for a while.
* Although its June 24 opening is just over the horizon, Plainridge Park is still revising plans for the Penn National Gaming racino. Meeting space will be increased and the food court downsized. Previously undisclosed attractions will include an oyster bar and a nightclub. All of these changes met with the approval of the Massachusetts Gaming Commission (and why not?). The Plainview track ought to be a safe place, with both MGC agents on property at all times but also a detachment of state police.
* Resorts Atlantic City is making it possible to play both conventional and Internet gambling at its Atlantic City property. Why? They’re taking the long view that this will raise customers’ comfort level with online play. Said Resorts owner Morris Bailey, “We can make it interesting and exciting. Some people fear the competition of online gambling to the brick-and-mortar casino. I think it’s going to be an asset.”
