Hail, Caesars Entertainment: the casino company may or may not be eyeing Atlantic City’s Revel as their acquisition that is newest
We doubt that the Roman emperor himself kept his name front and center because well as Caesars Entertainment Corporation does these days. 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 be always a issue for this casino conglomerate.
Lately, they are in talks with Japanese leaders to create a potential new casino in Osaka just as video gaming is legalized in Japan, and now the news that is latest, based on some insider reports, is that they’ve their attention on Atlantic City’s problem child casino, Revel.
Revel formally went into bankruptcy straight 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 will have under fourteen days to submit a bid, and according to Bloomberg, Caesars is not a slam dunk for this purchase; neither is it even 100 percent particular they shall even take action to do so.
Other contenders are within the mix; those include Orlando-based tough Rock International, who the nyc Post month that is last as being in ‘advanced negotiations’ for the purchase. That was after a decision by Hard Rock to scrap plans to build their own casino in the New Jersey gambling mecca back in 2012; apparently because in a nutshell the casino business is pretty much down for the count for the reason that town. With revenues dipped to a three-decade low in 2013 largely due to competition that is massive surrounding states building something new sort of lost its appeal, evidently.
Who knows who to think right here, but if the inside scoop at Bloomberg shows correct, Caesars would become keeping five Atlantic City casinos, which is very nearly half of the city’s staying 11 presently in procedure. And that’s not even taking under consideration the now-closed Atlantic Club that Caesars purchased at a fire sale auction for absolutely nothing at the conclusion of 2013.
All of this local purchase and presence might not sit well, nevertheless, with New Jersey’s Division of Gaming Enforcement (DGE), which does not take fondly to exactly what would fundamentally 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 stocks.
What all of it adds up to in this still very hypothetical situation is that the DGE could actually force Caesars to either sell off or shut straight down one of its other four extant casinos should they add Revel within their fold. Biggest for that scenario would be either Bally’s or the Showboat, as their moneymakers don’t shake as well as Caesars AC or Harrah’s AC; the latter two are 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 wouldn’t have to sink anymore to the property’s money-pit construction funding. By the right time Revel opened its doorways in 2012 with a much-touted ‘no smoking anywhere in the casino’ policy all it mostly heard at the slot machines and tables was the noise of silence. Despite spending $2.4 billion on the casino, patrons in the somewhat more Atlantic that is blue-collar City apparently did not feel at home there. And despite later reversing the no cigarette smoking dictum and marketing exactly what some later called misleading ‘free money for play’ to gamblers, the true numbers simply never really picked up; for 2013, the casino came in eighth out of (then) 12 for Atlantic City’s overall video gaming revenue ladder.
Just how much might Caesars or any bidder, for instance ante up for Revel if they in fact purchase it? No one understands yet. But for both Caesars and Atlantic City, making more money than they spend might be a goal that is good 2014.
Foxwoods is still into the game in Massachusetts, with Fall River now behind their casino project (Image: WBZ-TV)
Foxwoods might have been rejected in Milford, nevertheless they’re not stopping on the dream of a Massachusetts casino at this time. As has been speculated for some time now, Foxwoods and the city of Fall River will work together to produce a casino proposal that they hope should be able to win certainly one of the three casino licenses available in the state.
The plans were 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 stated that the casino could produce as many indian dreaming pokies as 5,000 jobs for the populous city, which includes continued to suffer with an unemployment price that is far more than that of Massachusetts as a whole.
According to officials, the casino would feature 140,000 square feet of gaming, along side up to 20 restaurants, a hotel, a convention center and venues for concerts and other events.
‘We want this become a destination here in Massachusetts also the Northeast,’ Mayor Flanagan stated.
Foxwoods CEO and president Scott Butera agreed that the casino would be a ‘destination resort,’ saying that major properties like the one they have planned are ‘economic engines like nothing else into the world.’
While Foxwoods was refused from Milford, they feel confident that they can be welcomed in Fall River.
‘ We realize it’s the right home for us,’ Butera said.
Regional experts regarding the casino industry agree with Butera’s assessment. Professor Clyde Barrow associated with the University of Massachusetts-Dartmouth says that non-binding votes and polling that is public consistently shown support for a casino within the Fall River area.
‘ Assuming they get a site and certainly will negotiate a number contract, I have actually without doubt a casino proposal would pass in Fall River,’ said Barrow.
Getting a site appears to be the largest sticking point in the master plan at the moment. While Foxwoods has a plan that is rough of they’d want to do in Fall River, they don’t really yet have any land to build on yet.
Which was a focus that is major of Tuesday press conference, as Mayor Flanagan appealed to owners whom might potentially be ready to sell large parcels of land. Foxwoods is apparently seeking a website of 30 to 70 acres on which to build, using the mayor saying that a waterfront site will be ideal.
Foxwoods should really be able to move quickly, due to the fact casino firm has already undergone background checks and received a suitability ruling in their campaign to construct 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 last 12 months. Foxwoods has become just the second business to look for 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 brand new legislation goes through in New Jersey, the Garden State could become a global player within the on line gaming universe.
The internet 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 regarded as a success for the state’s casinos. But even since the New Jersey Internet market that is betting in its infancy, some legislators are thinking ahead to the way the state could capitalize on legal online gambling worldwide.
A new proposal from New Jersey state senators Ray Lesniak and Jim Whelan would allow Atlantic City gambling enterprises and their partners who have earned online gambling licenses in their state to offer their games in other regulated jurisdictions because well. That could take nj-new jersey’s online offerings out of an admittedly large cottage industry and onto a much broader stage, where in fact the potential earnings for casinos and also the state government are nearly limitless.
‘This starts up the market that is worldwide us, the $30 billion Big Kahuna,’ stated Senator Lesniak.
This bill is 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 web sites. The idea was first floated by Lesniak year that is last before the very first sites also went real time. Under that version of the legislation, on line gambling organizations from worldwide could have been welcomed to New Jersey, potentially turning their state into a gambling hub that is international. That legislation was later changed to require businesses to use specifically out of Atlantic City, and to eliminate a requirement that online gambling firms help fund the state’s horseracing industry.
The version that is new of legislation simplifies those proposals. Beneath the current plan, New Jersey’s licensed casinos and their online gambling lovers would be allowed to offer their services in other regulated jurisdictions. In the place of bringing the planet of gambling to the state, it will allow New Jersey’s on-line casino industry to reach out to the massive global market alternatively.
The bill would also need payment processors to be certified within the way that is same nj’s casinos and their online gambling lovers. This would hopefully re solve some associated with the present dilemmas players are having with finance institutions online that is preventing gambling from being processed for the state’s regulated web sites. Many major banking institutions were wary of approving gambling that is online for an assortment of reasons, including confusion over how state and federal laws communicate on this issue. It’s hoped that licensing payment processors may help relieve these issues.
Lesniak thinks that such legislation would allow New Jersey to reap the maximum benefit from its relationship with online gambling.
‘[The bill] would put New Jersey at the hub of an international gaming industry that is expected to experience rapid growth in the years ahead,’ Lesniak said as he first introduced the bill in November. ‘The plan would assist attract worldwide gaming companies to New Jersey, producing jobs, state revenue and financial expansion.
‘we have been well positioned to make use of a powerful opportunity to be at the hub of a new company sector with the potential for economic growth and job creation,’ the senator added.