Hail, Caesars Entertainment: the casino company may or may not be eyeing Atlantic City’s Revel as their newest acquisition
We question that the Roman emperor himself kept his name front side and center as well as Caesars Entertainment Corporation does these days. And despite continuing to carry the gaming industry’s debt load that is heaviest hovering at the $24 billion mark, buying and building new properties does not seem to be always a problem because of this casino conglomerate.
Lately, they have been in talks with Japanese leaders to create a potential new casino in Osaka just as video gaming is legalized in Japan, and now the latest news, based on some insider reports, is the fact that they’ve their attention on Atlantic City’s problem son or daughter casino, Revel.
Could Revel Become Next on Their List?
Revel officially 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 has under fourteen days to submit a bid, and according to Bloomberg, Caesars is not a slam dunk for this acquisition; nor is it even 100 percent particular they will also make a move to do so.
Other contenders are definitely into the mix; those include Orlando-based complex Rock Overseas, who the nyc Post last month reported as being in ‘advanced negotiations’ for the purchase. That was following a decision by Hard Rock to scrap plans to build their very 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 in that town. With profits dipped to a three-decade low in 2013 largely due to competition that is massive surrounding states building one thing new sort of lost its appeal, apparently.
Who knows who to think here, but if the inside scoop at Bloomberg proves proper, Caesars would become keeping five Atlantic City gambling enterprises, which is very nearly half for the city’s remaining 11 presently in operation. And that’s not even taking into account the Atlantic that is now-closed Club Caesars bought at a fire purchase auction for practically nothing at the end of 2013.
NJDGE May Force A purchase
All this acquisition that is local presence might not sit well, but, 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’ into the city.
Should the Revel purchase become reality, it would push Caesars presence in Atlantic City’s casinos up to 47.2 percent in terms of revenue stocks.
Just 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 straight down one of its other four extant gambling enterprises should they add Revel in their fold. Most apparent for that scenario 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 now been trailing just down from competitors Borgata (owned by MGM Resorts International and Boyd Gaming) on a monthly basis.
The casino has nowhere to go but up as for revel. Even pre-opening, investor Morgan Stanley had already chosen to write down near to one billion bucks in debt so they really wouldn’t anymore have to sink in to the property’s money-pit construction funding. By the right time Revel started its doors 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 sound 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 here. And despite later reversing the no smoking cigarettes dictum and advertising exactly what some later called deceptive ‘free money for play’ to gamblers, the true numbers simply never truly picked up; for 2013, the casino came in eighth away from (then) 12 for Atlantic City’s overall gaming revenue ladder.
Just how much might Caesars or any bidder, for instance ante up for Revel if they in fact buy it? No body understands yet. But also for both Caesars and Atlantic City, making more money than they spend could be a good goal for 2014.
Foxwoods Fall River Casino Goes Official, But Still Needs a niche site
Foxwoods is still in the game in Massachusetts, with Fall River now behind their casino project (Image: WBZ-TV)
Foxwoods might have been refused in Milford, nonetheless they’re not quitting on the dream of a Massachusetts casino at this time. As has been speculated for some time now, Foxwoods and the town of Fall River will work together to produce a casino proposal that they wish should be able to win certainly one of the three casino licenses available in the state.
Economic Boost for City
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 create as many as 5,000 jobs for the populous town, which includes continued to suffer from an unemployment price that is far greater 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 occasions.
‘We want this become a destination here in Massachusetts also the Northeast,’ Mayor Flanagan said.
Foxwoods CEO and president Scott Butera agreed that the casino could be a ‘destination resort,’ saying that major properties including the one they have planned are ‘economic engines like nothing else within the global 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.
Locals Help Foxwoods Project
Regional experts regarding the casino industry agree with Butera’s assessment. Professor Clyde Barrow of this University of Massachusetts-Dartmouth says that non-binding votes and general public polling have consistently shown support for a casino in the Fall River area.
‘ Assuming they get a site and certainly will negotiate a bunch contract, I have no doubt a casino proposition would pass in Fall River,’ said Barrow.
Locating a site seems to be the biggest sticking point in the plan during the moment. While Foxwoods features a plan that is rough of they’d prefer to do in Fall River, they do not yet have any land to build on yet.
That was a major focus of the Tuesday press conference, as Mayor Flanagan appealed to owners whom might potentially be prepared to offer large parcels of land. Foxwoods is apparently searching for a website of 30 to 70 acres on which to build, utilizing the mayor stating that a waterfront web site is ideal.
Foxwoods should be in a position to move quickly, once the casino firm has already undergone background checks and received a suitability ruling in their campaign to build a casino in Milford.
Foxwoods would now be competing for the casino license available in Southeastern Massachusetts. While the licenses for Western Massachusetts and Greater Boston will be awarded in a matter of months, the Southeastern license ended up being delayed as state regulators allowed the Mashpee Wampanoag tribe to try and gain land on which to build a casino in Taunton. With that process seemingly stalled, their state gambling commission lifted the freeze on the Southeastern region last 12 months. Foxwoods has become simply the company that is second 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.
Nj Legislators Reintroduce International Online Gambling Bill
If brand new legislation goes through in brand new Jersey, the Garden State could become a global player in the on line gaming universe.
The online gambling market in New Jersey may not be pulling in the revenues that are enormous Governor Chris Christie predicted, but overall, the launch has been seen as a success for the state’s casinos. But even because the New Jersey Internet market that is betting in its infancy, some legislators are thinking ahead to how a state could capitalize on legal on line gambling worldwide.
A proposal that is new 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 their state to offer their games in other regulated jurisdictions since well. That could take nj’s online offerings out of an admittedly big cottage industry and onto a much broader stage, where the potential profits for casinos and the state are nearly limitless.
‘This opens up the market that is worldwide 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 web sites. The idea was first floated by Lesniak last year, before the first web sites also went real time. Under that version of the legislation, on line gambling companies from worldwide might have been welcomed to New Jersey, potentially switching hawaii into a gambling hub that is international. That legislation was later changed to need companies to use specifically out of Atlantic City, and to remove a requirement that online gambling firms help fund the state’s horseracing industry.
Stepping Outside State Lines
The new version associated with the legislation simplifies those proposals. Underneath the plan that is current nj’s licensed casinos and their online gambling partners could be allowed to offer their services in other regulated jurisdictions. Instead of bringing the entire world of gambling to the state, it would allow New Jersey’s on-line casino industry to reach out to the massive global market instead.
The bill would also require re payment processors to be certified into the same manner as New Jersey’s casinos and their online gambling lovers. This would hopefully solve some of the current issues players are having with banking institutions preventing on line gambling payments from being processed for the state’s regulated internet sites. Many major banking institutions have already been wary of approving gambling that is online for a number of reasons, including confusion over just how state and federal laws interact on this problem. It is hoped that licensing re payment processors may help relieve 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 nj-new Jersey at the hub of an international gaming industry that is expected to experience rapid growth in the years ahead,’ Lesniak said when he first introduced the bill in November. ‘The plan would help attract worldwide gaming companies to New Jersey, producing jobs, state income and expansion that is economic.
‘We are well positioned to make use of an opportunity that is dynamic be at the hub of a new business sector with the potential for economic growth and job creation,’ the senator added.