Hail, Caesars Entertainment: the casino business may or may not be eyeing Atlantic City’s Revel as their newest acquisition
We doubt that the Roman emperor himself kept his name center and front since well as Caesars Entertainment Corporation does today. And despite continuing to carry the gaming industry’s heaviest debt load hovering at the $24 billion mark, buying and building new properties does not appear to become a problem for this casino conglomerate.
Lately, they have been in talks with Japanese leaders to build a possible new casino in Osaka just as video gaming is legalized in Japan, and now the news that is latest, according to some insider reports, is they will have their eye on Atlantic City’s issue son or daughter casino, Revel.
Revel officially went into bankruptcy right back in March 2013; not even 12 months into its once-gloriously touted entrance onto the Atlantic City land gaming that is beleaguered scene. Now anyone interested in snatching the casino up has under fourteen days to submit a bid, and according to Bloomberg, Caesars isn’t a slam dunk with this acquisition; nor is it even 100 percent particular they will even move to do this.
Other contenders are definitely within the mix; those include Orlando-based complex Rock Global, who the New York Post month that is last as being in ‘advanced negotiations’ for the purchase. That was following a decision by Hard Rock to scrap plans to build their casino that is own in New Jersey gambling mecca back 2012; reportedly because in a nutshell the casino business is pretty much down for the count in that town. With profits dipped to a three-decade low in 2013 largely due to massive competition from surrounding states building one thing new sort of lost its appeal, evidently.
Who knows who to believe here, if the inside scoop at Bloomberg proves correct, Caesars would end up keeping five Atlantic City gambling enterprises, that is nearly half associated with the city’s staying 11 currently in operation. And that’s not even taking under consideration the Atlantic that is now-closed Club Caesars purchased at a fire sale auction for practically nothing by the end of 2013.
All this acquisition that is local existence may not sit well, however, with New Jersey’s Division of Gaming Enforcement (DGE), which will not take fondly to just what would essentially amount to some antitrust issues by holding what the DGE refers to as ‘undue economic concentration’ within the city.
Should the Revel purchase become reality, it would push Caesars existence in Atlantic City’s casinos up to 47.2 percent in terms of revenue shares.
Exactly What it all adds up to in this still very hypothetical situation is that the DGE could actually force Caesars to either sell off or shut down one of its other four extant casinos should they add Revel into their fold. Biggest for that situation would be either Bally’s or the Showboat, as their moneymakers don’t shake because well as Caesars AC or Harrah’s AC; the latter two have been trailing just down from competitors Borgata (owned by MGM Resorts International and Boyd Gaming) on a basis that is monthly.
The casino has nowhere to go but up as for revel. Even pre-opening, investor Morgan Stanley had already chosen to write off close to one billion dollars in debt so they really wouldn’t anymore have to sink into the property’s money-pit construction funding. By the time Revel started its doorways in 2012 with a much-touted ‘no smoking anywhere in the casino’ policy all it mostly heard at the slot devices and tables ended up being the noise of silence. Despite investing $2.4 billion on the casino, clients in the somewhat more blue-collar Atlantic City demographic apparently didn’t feel at home there. And despite later reversing the no cigarette smoking dictum and advertising just what some later called deceptive ‘free money for play’ to gamblers, the true numbers simply hardly ever really picked up; for 2013, the casino came in eighth out of (then) 12 for Atlantic City’s overall video gaming revenue ladder.
Simply how much might Caesars or any bidder, for instance ante up for Revel if they in fact buy it? No body knows yet. But also for both Caesars and Atlantic City, making more cash than they spend could be a good goal for 2014.
Foxwoods is still within the game in Massachusetts, with Fall River now behind their casino project (Image: WBZ-TV)
Foxwoods might have been refused in Milford, however they’re not giving up on their dream of a Massachusetts casino just yet. As was speculated for some time now, Foxwoods and the town of Fall River will work together to make a casino proposition that they hope should be able to win certainly one of the three casino licenses available in the state.
The plans had been announced at a press conference recently, in which Mayor William Flanagan and officials from Foxwoods made public their plan to bring a $750 million resort casino to the town. The mayor said that the casino could produce as many as 5,000 jobs for the populous town, which has continued to suffer with an unemployment price that is far higher than that of Massachusetts as a whole.
Based on officials, the casino would feature 140,000 square feet of gaming, along with up to 20 restaurants, a hotel, a convention center and venues for concerts as well as other activities.
‘We want this to be a destination here in Massachusetts along with the Northeast,’ Mayor Flanagan said.
Foxwoods CEO and president Scott Butera agreed that the casino would have been a ‘destination resort,’ saying that major properties like the one they have planned are ‘economic engines like nothing else within the world.’
While Foxwoods was refused from Milford, they feel confident that they’re going to be welcomed in Fall River.
‘ We know it’s the home that is right us,’ Butera said.
Local specialists regarding the casino industry agree with Butera’s assessment. Professor Clyde Barrow regarding the University of Massachusetts-Dartmouth says that non-binding votes and polling that is public regularly shown support for a casino within the Fall River area.
‘ Assuming they get a site and that can negotiate a host agreement, I have without doubt a casino proposal would pass in Fall River,’ stated Barrow.
Getting a web site is apparently the biggest sticking point in the master plan at the moment. While Foxwoods has a plan that is rough of they’d prefer to do in Fall River, they don’t yet have any land to build on yet.
Which was a major focus of the Tuesday press conference, as Mayor Flanagan appealed to owners whom might potentially be willing to offer large parcels of land. Foxwoods is apparently trying to find a site of 30 to 70 acres on which to build, with the mayor stating that a waterfront web site is ideal.
Foxwoods should be able to move quickly, once the casino firm has already withstood criminal record checks and received a suitability ruling throughout their campaign to create a casino in Milford.
Foxwoods would now be competing for the casino license available in Southeastern Massachusetts. The southeastern license was delayed as state regulators allowed the Mashpee Wampanoag tribe to attempt to gain land on which to build a casino in Taunton while the licenses for Western Massachusetts and Greater Boston will be awarded in a matter of months. With that process apparently stalled, their state gambling commission lifted the freeze on the Southeastern region year that is last. Foxwoods has become simply the 2nd business to seek a casino in the region, joining KG Urban, which is looking to build a casino in New Bedford.
For Foxwoods, the strange series of events that brought them to Fall River feels like divine intervention.
If new legislation goes through in New Jersey, the Garden State could become a global player within the on the web gaming universe.
The online gambling market in brand New Jersey might not be pulling in the revenues that are enormous Governor Chris Christie predicted, but overall, the launch has been viewed as a success for the state’s casinos. But even as the New Jersey Internet gambling market is in its infancy, some legislators are thinking ahead to the way the state could capitalize on legal on the web gambling worldwide.
A new proposal from New Jersey state senators Ray Lesniak and Jim Whelan would allow Atlantic City casinos and their partners who have actually earned online gambling licenses in the state to offer their games in other regulated jurisdictions because well. That could take nj-new jersey’s online offerings away from an admittedly large cottage industry and onto a much broader stage, where in actuality the potential profits for casinos while the local government are nearly limitless.
‘This opens up the worldwide market to us, the $30 billion Big Kahuna,’ said Senator Lesniak.
This bill is perhaps not the time that is first Jersey’s legislators have taken a glance at where else the state’s licensees might offer their online gaming sites. The concept was first floated by Lesniak last year, before the first internet sites even went live. Under that version of the legislation, online gambling companies from around the world could have been welcomed to New Jersey, potentially turning the state into a worldwide gambling hub. That legislation was later changed to require companies to use specifically out of Atlantic City, and to remove a requirement that on the web gambling firms help fund the state’s horseracing industry.
The new version regarding the myfreepokies.com legislation simplifies those proposals. Beneath the current plan, New Jersey’s licensed casinos and their online gambling partners would be permitted to offer their services in other regulated jurisdictions. In place of bringing the planet of gambling to the state, it will allow New Jersey’s on-line casino industry to touch base to the massive market that is worldwide.
The bill would also need payment processors to be licensed within the way that is same New Jersey’s casinos and their online gambling lovers. This would hopefully solve some for the current dilemmas players are having with financial institutions online that is preventing gambling from being processed for the state’s regulated internet sites. Many major banks are wary of approving online gambling transactions for a variety of reasons, including confusion over how state and federal laws communicate on this issue. It is hoped that licensing payment processors may help ease these issues.
Lesniak believes that such legislation would allow New Jersey to reap the maximum benefit from online gambling to its association.
‘[The bill] would put New Jersey at the hub of an international gaming industry that is anticipated to experience rapid growth in the years ahead,’ Lesniak said as he first introduced the bill in November. ‘The plan would help attract worldwide gaming companies to New Jersey, creating jobs, state revenue and financial expansion.
‘We are well placed to benefit from an opportunity that is dynamic be at the hub of a new company sector with the potential for economic growth and job creation,’ the senator added.