Originally Posted by
Dan Druff
I have $2300+ in reward credits there, which are comp dollars. I wonder if I should spend them before they are rendered useless.
I would immediately.......they could gaffe them, PokerStars FPP style.
Caesar's is *so* levered up in debt, around $20 billion or so, thank to MIT grad Gary Loveman's excellent decision to buy up land left and right during the RS boom in a play to become a monopoly (and get in bed potentially with the Russian mob in the process, costing them the Boston bid), as well as have financial instruments like commercial real estate derivatives tied to that debt. They've de-leveraged around 3-5% of it over the last 3 years, but they are still in super huge debt and sitting these properties that have problems drawing patron volume, never mind patron gambling participation.
But Gary has no problem going on CNBC and advocating to cut social security because the "country is too much in debt".
When Foxwoods was found to be in their debt hole, they cut everything: worker wages, buses, comps, etc. Foxwoods, IMO, will be completely bought out by MGM in 10-12 years. Caesar's at least can liquidate if it every got to Foxwoods' levels.
Caesar's may take a similar route, especially with the income situation as it is for young people (in debt) and the male demographic (a working male 30 years ago makes more after you factor in inflation), dragging down consumer spending (the majority of the consumer "spending" in April was from "services" like NetFlix, Obamacare, Utility bills, and not retail sales).