The stock of casino resort giant Caesars Entertainment Corp. of Las Vegas continues to fall this week as more analysts suggest it may have to restructure its debt and spin off assets like the World Series of Poker.
http://www.vegasinc.com/news/2012/se...d-series-poke/
Good, bad?
"You run into an asshole in the morning, you ran into an asshole; you run into assholes all day, you're the asshole."
I Think this would be a good time to sell as i see the numbers falling over the next few years, They made a ton of cash with the brand and the name is still worth a ton, If they think their is a chance to get world wide online poker room then they would never sell.Originally Posted by LLL
-Allergic to the struggle
Wow, very interesting.
Never understood how major strip casinos lose money. They have so many forms of revenue -- hotels, shows, gaming, restaurants, shopping. I mean, even in a bad economy, they have so many ways to make money that most other hotels don't. I think it's more of a case of mismanagement and overexpansion.
Anyway, another company purchasing the WSOP would probably be good operations-wise (long term, not short term) but perhaps bad marketing-wise. Caesar's has done a great job marketing the WSOP despite the downturn in poker. I don't know if another company would be as effective.
Operations-wise, any new company would experience rookie mistakes, but I imagine they would eventually learn to do it better than Caesar's. It's unbelievable the amount of fail that still occurs there after 8 years at the Rio.
Wow, very interesting.
Never understood how major strip casinos lose money. They have so many forms of revenue -- hotels, shows, gaming, restaurants, shopping. I mean, even in a bad economy, they have so many ways to make money that most other hotels don't. I think it's more of a case of mismanagement and overexpansion.
Anyway, another company purchasing the WSOP would probably be good operations-wise (long term, not short term) but perhaps bad marketing-wise. Caesar's has done a great job marketing the WSOP despite the downturn in poker. I don't know if another company would be as effective.
Operations-wise, any new company would experience rookie mistakes, but I imagine they would eventually learn to do it better than Caesar's. It's unbelievable the amount of fail that still occurs there after 8 years at the Rio.
Their overhead is astronomical. Agree, that it is still hard to believe though.
True, there is a lot of overhead, but it's what I call "good overhead". That is, overhead which only exists because you have such a large customer base and so many options for them to spend money.
Their overhead is astronomical. Agree, that it is still hard to believe though.
Take a big hotel in a city like New York. They basically only have two real income streams -- room charges and the restaurant (if they even have a restaurant). Yes, they might make a bit more on things like the minibar, parking, pay-per-view TV, internet fees, and room service, but those are not likely to make a big impact on their bottom line. These hotels have to make do without the huge cash cows that large Vegas hotels have going for them.
I think it's just a matter of the natural tendency to increase spending as income increases, and then not being ready for the leaner times. This is also what busts many poker players. When they are running well, they start spending like they will continue making money at that pace, and when it stops (or they lose money), they go broke quickly.
I bet its due to some clown eating up all the mashed potatoes at the buffet.
I always knew Chainsaw would be the downfall of Harrah's I just didnt think it would be so soon.
You can joke about this, but I do wonder if this situation is going to affect the comps program offered by Caesar's.I always knew Chainsaw would be the downfall of Harrah's I just didnt think it would be so soon.
They could very possibly audit their Total Rewards system and cut down on the benefits in order to save money.
Can Jack Binion reclaim what is rightfully his?
I couldnt resist based on the mashed potatoes comment, but on a serious note it wouldn't surprise me any. What I dont get it is from what I know (wife works in the resort industry) things actually have been good business-wise for resorts in general this summer compared to previous years so signs point to an upswing continuing in business. If Harrahs is having this much trouble its definitely a sign of mismanagement issues vs actual lack of business income. Granted Summer isn't prime Vegas business time outside of those who come for the WSOP, I would still think Harrahs SHOULD have done decent business this summer with WSOP numbers reasonably good considering we are a year+ out from Black Friday. I guess time will tell what the fallout of this all is, but I dont see them selling WSOP its the one piece of intellectual property they have thats worth something vs all their B&M holdings and I do believe they indeed plan to put out a WSOP pokersite, likely under the Nevada Online Gaming provisions.You can joke about this, but I do wonder if this situation is going to affect the comps program offered by Caesar's.
I always knew Chainsaw would be the downfall of Harrah's I just didnt think it would be so soon.
They could very possibly audit their Total Rewards system and cut down on the benefits in order to save money.
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