Caesars Could Fill Revel Casino, Says One Gaming Analyst
Caesars Entertainment’s various gambling interests on the east coast are involved in controversy at the moment. The large American casino operator is involved in litigation in Pennsylvania and Massachusetts, while it could be headed towards a political controversy in New Jersey with a former mayor of Atlantic City. While this could spell trouble for Caesars, the company also is poised to add a property which could upgrade and modernize the company’s considerable assets in Atlantic City.
Caesar’s Entertainment is running into opposition from New Jersey state politicians in its bid to acquire a fifth casino property in Atlantic City. New Jersey state senator Jim Whelan is saying the proposed acquisition of Revel Casino would be illegal, citing laws against the undue economic concentration of resources in any one gambling industry business.
Senator Whelan said he did not think it would be wise to have Atlantic City “dependent on the rise or fall of one particular company.” Underscoring Whelan’s point is the fact Caesars Entertainment is known to have $24 billion in debt load, which has caused industry observers doubts about the casino corporation’s long term health.
Other gaming interests are considering a bad on the Revel Casino, as well. The Atlantic City operation underwent bankruptcy proceedings last year and its financial situation continues to be troubling. Hard Rock International, a casino company based out of Florida, may put in a bid on the Revel Casino.
If Caesar’s Entertainment obtained the Revel Casino, it would control 5 of the current 11 casinos in the city. The number has fallen to 11 after the Tropicana Casino and Caesars Entertainment bought the Atlantic Club in December 2013 in order to close its doors. With the ability of Atlantic City casinos to pair with outside interests for the sake of conducting legal online gambling, the two companies decided it made sense to shut down an additional competitor.
Bidding for Revel Casino
The bidding process for Revel Casino begins in two weeks. The $2.6 billion property has had a troubled history in its short time in Atlantic City, after opening to considerable buzz in April of 2012. Analysts say Caesars Entertainment could use the Revel’s loyalty program to send customers to their other properties in town, so it would have significant value to the casino company, beyond simply bringing their aging brand in the city into the 21st century.
Robert Heller of Spectrum Gaming Capital says the property would be a “major upgrade” for Caesars in the city. Heller said, “They could fill the place.”
Philadelphia Racetrack Casino Dispute
Caesars could lose its license to build a casino next door to the Harrah’s Philadelphia Racetrack, due to ongoing concerns with the safety of the track. In November 2013, harness race driver Anthony Colletta was thrown from his sulky and suffered brain damage, after another horse trampled him. The family of Colleta is suing Caesars for the condition of the track, while their lawyers are going to conduct a forensic study of the track.
Meanwhile, the Pennsylvania Harness Racing Commission is set to conduct their own investigation into the matter. If they deem the racing surface to be dangerous, this could put Caesars’ licensing status in jeopardy. Part of permission to operate a license is maintaining the quality of the Philadelphia track, so Caesars Entertainment enters a pivotal time in the State of Pennsylvania.
Boston Gambling Lawsuits
Caesars filed a lawsuit against Massachusetts Gaming Commission chairman Stephen Crosby over his support of a rival Wynn Casino bid for a Boston casino license. The suit suggests Chairman Crosby is supporting the Wynn plan because the land on which the new Wynn Casino would be built is owned by one of Crosby’s friends.
Stephen Crosby has called these charges “groundless” and “inflammatory”, while filing a counter-suit which would have the Caesars lawsuit dismissed. Meanwhile, Steve Wynn released a statement opposing the Caesars Entertainment lawsuit, in which he himself called the suit “shameless” and “desperate”.
Bill’s Gambling Hall Now the Cromwell
Caesars Entertainment also renamed one of its Las Vegas properties last week. Bill’s Gambling Hall is starting to take reservations under a new title: the Cromwell Casino. The property originally was named the Barbary Coast Hotel and Casino when it first opened back in 1979. Caesars bought the establishment back in 2007, which is when the gambling venue came to be known as Bill’s Gambling Hall.
