Caesars Entertainment was recently forced to close one casino in Atlantic City, a former gambling hub that is increasingly unpopular. There are very few ventures that are still profitable and the remaining ones who have survived bankruptcy are under siege. Luckily for Caesars, they are running a lucrative business nationwide and have plenty of profitable casinos beyond borders, but recently they found themselves on the wrong end of several lawsuits.
Add to this the fact that two of their casinos in the United States were targeted by robbers’ over the last couple of months and it is easy to see why the representatives are so concerned. The perpetrators have been apprehended, but it is still immensely frustrating for the industry as a whole and Caesars in particular that they get kicked when already down. Meanwhile they are trying to restructure a couple of casinos and this prompted rating companies to say that downfall is imminent.
Caesars’ Entertainment is willing to fight those allegations in court and in order to preserve its reputation, has launched a couple of lawsuits. Even if they end up winning some of them, they will still have to find a way to play a debt that revolves around the value of $24 billion. Those who find themselves down the list and are unlikely to see a dime anytime soon are particularly upset, with some choosing to file lawsuits, in order to push the reimbursement process into overdrive.
The lawyers are quite busy trying to fight those charges, because losing lawsuits would translate into additional money being lost. The worst-case scenario is for Caesars’ Entertainment to lose a few more billions, which is the last thing they need right now. On the other front, they are the aggressors, while the targeted companies are Appaloosa Management, Centerbridge Partners or Oaktree Capital Management.
They accuse these hedge funds of unlawful practices, in an attempt of discrediting Caesars’ Entertainment and casino representatives claim that these offenders have their own agenda. The stakes are as high as they get, but if will take a while before a verdict would be given, with settlements being the most likely outcome. The number of people who claim that land-based casinos in general and Caesars in particular are fighting a losing battle with their online counterparts has increased and the recent allegations and lawsuits are not helping at all.