Caesars Unlikely to Promote Las Vegas On line casino Till 2022


Posted on: Might 4, 2021, 10:24h. 

Final up to date on: Might 4, 2021, 10:31h.

Caesars Leisure (NASDAQ:CZR) reported stable first-quarter outcomes Tuesday whereas noting weekends at its Las Vegas venues “are offered out for the foreseeable future” within the phrases of CEO Tom Reeg, however the operator gained’t be unloading any of its Sin Metropolis properties this yr.

Caesars Las Vegas
Caesars CEO Tom Reeg in a CNBC interview final month. He says the corporate gained’t promote a Las Vegas asset till 2022. (Picture: CNBC)

The biggest home gaming firm by variety of properties posted earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) of $505 million within the first three months of the yr. Reeg added it’s possible the Flamingo operator earns a minimum of $1 billion in certainly one of this yr’s 4 quarters.

Nonetheless, Caesars gained’t be a part of the rising checklist of current Las Vegas on line casino gross sales, together with the Palms and the Tropicana.

We stay satisfied that it doesn’t make sense for us to market an asset till we are able to promote it off the money stream that we’re doing with it, not a bridge to what we predict we are able to do with it,” mentioned Reeg on a convention name with analysts. “So that means it’s a 2022 occasion from a advertising and marketing and sale train that closes after licensing publish.”

One asset that the corporate did verify is on the market is William Hill’s UK betting retailers and its European on-line casinos and sports activities wagering enterprise. CFO Bret Yunker mentioned the corporate plans to scale back debt by $2 billion over the subsequent yr, assuming a “conservative” sale worth for the William Hill belongings. Caesars expects to announce a purchaser within the third or fourth quarter.

Caesars Las Vegas Rumors Going Sturdy

The concept of Caesars parting with one or two Strip belongings dates again practically two years when Eldorado Resorts introduced plans to amass “outdated Caesars” — revealing that it may promote one or two Las Vegas casinos inside 12 or 18 months of that transaction closing.

The wedding was consummated final July throughout the coroanvirus pandemic, which is miserable gaming property values. Of the Las Vegas venues that modified palms this yr, solely the Venetian and Sands Expo and Conference Heart offered at something resembling premium pricing.

That’s not stopping the rumor mill from spinning. A supply requesting anonymity tells On line Paris Las Vegas and Planet Hollywood Resort & On line casino may already be up on the market. Reeg disagrees.

“And I ought to say I’ve learn quite a lot of extra rumors, completely different taste this quarter. There are not any energetic discussions on any Las Vegas asset as I sit right here at this time,” mentioned the Caesars CEO on the decision.

One thing to the Chatter

It’s not a stretch to imagine that when it decides to promote Strip asset or belongings, Caesars may half with Paris and Planet Hollywood.

When Eldorado moved on Caesars in 2019, it struck an settlement with VICI Properties (NYSE:VICI) for rights of first refusal on certainly one of Flamingo Las Vegas, Bally’s Las Vegas, Paris and Planet Hollywood. Ought to a deal for a type of venues be reached, LINQ Resort & On line casino can be added to the remaining group for a doable second transaction.

A rumor about Planet Hollywood being on the public sale block surfaced in February, however associated discuss has since been quiet.

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