Category Archives: Caesars Entertainment

William Shen: Integrated resorts add dimensions to non-gaming entertainment


In this interview with CalvinAyre.com’s Stephanie Tower, Caesars Entertainment Senior Vice President William Shen discusses the unique opportunities that the casino operator sees in Japan.

The Japanese Diet’s lower house is set to make a vote on the Integrated Resorts (IR) Implementation Bill on June 12. The vote was initially scheduled for earlier in June but lawmakers moved it on a later date to give way to Niigata gubernatorial elections.

Major casino operators have been jostling for pole position in the Japanese market, courting both local partners and venue hosts even before the IR Bill was submitted to the Diet in May.

Japan’s vast opportunities have excited major casino operators seeking a slice of the country’s gambling pie, according to Caesars Entertainment’s Senior Vice President William Shen.

“Japan has enormous opportunity and IRs can only be built upon it because the existing attraction has already brought appeal, whether it is cultural or the arts, as mentioned earlier, the shopping, the food,” Shen told CalvinAyre.com. “IRs add additional dimension both on the conference and convention side but also from a non-gaming, broad-based entertainment side.”

Gaming analysts estimate that the Japanese gambling market could be worth as much as $40 billion annually. Japan also welcomed a record 24 million tourists in 2017.

Japan is also seen as a more viable option for many casino operators affected by the Chinese government’s crackdown on corruption and currency outflows in recent years.

However, Japan might only issue two casino licenses after its broad regulatory framework is passed. Shen believes that Caesars may succeed in securing one of these licenses since it offers multi-faceted entertainment opportunities for guests around the world.

In Las Vegas, Caesars currently has nine integrated resorts, which offer a variety of shows, not only the so-called headliners but also magic shows and family friendly shows, according to Shen.

“Japan is one of the places where the theme parks are the most popular and the most successful in the world. So IRs, this location-based entertainment model that we have to offer, we believe, will be very successful there as well,” the Caesars executive said. “We have lots to offer on the F&B side, the food and beverage, restaurants with celebrity chefs, but also the shopping, and the spa, and the golf courses. So, that’s the type of thing we want to be able to bring to markets internationally as we expand.”

He also allayed fears of that opening casinos in Japan will be bad for the residents of the country, saying that integrated resorts bring huge value in terms of job creation, tourism attraction, tax benefits and investment.

“I think that story needs to get out there more. This is a real track record that we possess in this industry and as it relates to casinos itself, there’s actually decades of responsible gaming leadership that we have exhibited in each market that we operate in, where we try to do the right thing by our guests all the time,” Shen said. “These are the types of things that as we go through this processes I think, people would come to better understand with some more effort of course on the part of the industry but also on the part of the public leadership as well.”

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Personal bankruptcy judge offers Caesars creditors the okay to vote on restructuring


June 23, 2016

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caesars-bankruptcy-restructuring-voteOn line casino operator Caesars Leisure has acquired courtroom acceptance to let creditors to vote on the proposed restructuring plan of the operator’s bankrupt main unit.

On Wednesday, US Personal bankruptcy Judge Benjamin Goldgar set a Jan. seventeen, 2017 affirmation hearing for the prepared restructuring of Caesars Leisure Functioning Co (CEOC), which filed for Chapter 11 personal bankruptcy defense final 12 months.

In issuing his ruling, Goldgar stated there was “something poetic” about that January date, which arrives two many years and two times following CEOC filed its Chapter 11 paperwork, citing $eighteen.4b in debts.

Goldgar’s stress with the size of this method was on complete show on Wednesday, as he insisted the functions have been “going to end this now.” Having said that, he also stated he expects Caesars’ path to creditor harmony would be neither small nor basic.

Though the affirmation hearing is however seven months absent, lawsuits filed by CEOC’s creditors in Delaware and New York could get underway by Aug. 29. Goldgar granted a short-term continue to be of the fits final week in a bid to let Caesars far more time in which to encourage creditors to indication on to CEOC’s restructuring.

On Wednesday, CEOC legal professionals claimed they’d produced “significant progress” in finding senior creditors to approve the restructuring, and a lawyer symbolizing a team of senior bondholders stated his clients have been shut to signing on the dotted line.

The junior creditors who filed those people Delaware and New York lawsuits are proving a harder promote, as they are the types who’ve been questioned to bear the brunt of the $10b that CEOC’s proposed restructuring would make disappear. They assert to be owed as considerably as $12.6b and think the more $4b that the Caesars father or mother corporation has supplied to add is an insult.

The junior creditors have accused Caesars of stripping CEOC of its far more lucrative assets and shifting them to other Caesars’ divisions in buy to protect them from creditors’ clutches. The creditors have also accused Caesars’ hedge fund owners of unlawfully absolving the father or mother corporation of obligation to honor the debts of its main unit. The father or mother corporation has stated it will have to join CEOC in personal bankruptcy courtroom if it is required to honor those people personal debt obligations.



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Caesars Interactive’s social gaming unit proceeds to monetize like a mofo


May five, 2016

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caesars-interactive-social-casino-revenueOn the net gambling and social gaming operator Caesars Interactive Enjoyment (CIE) described still a different potent quarterly earnings general performance but it was not adequate to protect against earnings slipping by almost 3-quarters.

On Thursday, CIE’s dad or mum Caesars Acquisition Company (CACQ) described earnings of $643.6m in the 3 months ending March 31, up 13.six% from the identical time period past year, while altered earnings rose 31.five% to $194.6m.

But operating earnings fell 43.4% to $116m and net earnings fell 74.4% to $37m owing to the adjust in the good worth of “contingently issuable non-voting membership units.” Absent these recalculations, CACQ says operating earnings would have risen $28.7m.

The units in dilemma ended up issued to Caesars Enjoyment Corporation (CEC), from which CACQ was – illegally, by most accounts – spun off prior to the bankruptcy of CEC’s most important unit, and ended up required dependent on CIE getting exceeded specified earnings targets. So, sorry CIE shareholders, but CEC’s hedge fund bosses get paid out initially. As standard.

The interactive division stays firmly driving CACQ’s steering wheel, with earnings up 29% to $227.8m and operating earnings up 31.five% to $53.4m, even though income fell 9.two% to $24.8m on increased profits and promoting costs as perfectly as the firm producing CEC’s working day with the aforementioned stock-dependent compensation.

CIE’s social and cell recreation earnings was up 30% year-on-year and almost 10% sequentially to $218.2m. By contrast, CIE’s Entire world Sequence of Poker operations and its actual-revenue on-line gambling organization in New Jersey and Nevada was up six% to $9.6m.

CIE’s social and cell games unit proceeds to established the rate in conditions of monetization, as average earnings for every user rose 4¢ year-on-year to 35¢. Ordinary day-to-day energetic consumers ended up up additional than 10% while average monthly exclusive payers enhanced almost 21% to 922k, representing 4.five% of average monthly exclusive consumers (as opposed to one.seven% in rival Zynga’s latest report).

CACQ’s brick-and-mortar on line casino operations – Bally’s Las Vegas, The Cromwell, The LINQ, Planet Hollywood, Harrah’s New Orleans and Horseshoe Baltimore – described earnings increasing six.six% to $415.8m.

The gains ended up dependent mostly on a comprehensive quarter’s contribution from The LINQ, which underwent an in depth renovation past year. These gains ended up blunted by reduced visitation at Harrah’s New Orleans pursuing the metropolis imposing an indoor using tobacco ban past April.



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