Caesars Entertainment Corp. CEO Gary Loveman said
Wednesday that his company is “considering offers on the Showboat from a
variety of potential purchasers.”
Loveman said the company has no immediate plans to close
any of its three remaining Atlantic City casino-hotels.
Industry analysts widely expect a debt-mired Caesars
subsidiary, Caesars Entertainment Operating Co., to file for Chapter 11
bankruptcy protection.
Caesars Atlantic City and Bally’s Atlantic City, both of
which are stationed under the subsidiary, might change ownership in that event,
analysts say. But it’s also possible that Caesars would financially strengthen
the properties during a bankruptcy.
Harrah’s, considered the most desirable casino in
Caesars’ Atlantic City empire, has been safehoused in a relatively healthy
company called Caesars Entertainment Resort Properties.
“The Atlantic City market continues to be under a lot of
pressure,” Loveman said Wednesday after a ceremonial signing of the final
construction beam at the Harrah’s Waterfront Conference Center construction
site.
“The challenge in Atlantic City is not simply revenue but
cost,” he said. Atlantic City casino revenue has nearly halved since peaking at
$5.2 billion in 2006.
Bankrupt Trump Entertainment Resorts recently tried to
address costs by obtaining court-ordered union concessions that, the company
said, will save it $14.6 million annually.
Loveman said Caesars does not “have any ongoing
discussions with the union about modifying the terms of our (labor)
agreements.”
Loveman also said New Jersey’s ongoing bid to bypass a
federal ban to bring sports betting to the state’s gambling halls has grabbed
his attention.
“I’m always interested in sports betting,” he said.
Source: Press
of Atlantic City
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