Ronald Burkle Interested in Acquiring Caesar’s Las Vegas Resort

Ronald Burkle has been a member of the three comma club for quite a while now as is the major driving force behind Soho House, which is a chain of private member clubs. Reportedly, this billionaire had contacted Caesars Entertainment Limited and expressed his wish to buy one of their resorts located in Las Vegas called Rio All-Suite Las Vegas Hotel and Casino.

PageSix.com is a platform for celebrity news and gossip, which is why this piece of news should be taken with a grain of salt. They published an article in which they state that the 66-year-old billionaire, who is also the manager for The Yucaipa Companies private equity and venture capital firm, has set his eyes on Las Vegas.

On the other hand, Caesars Entertainment Limited is a Las Vegas-based company which currently operates 25 casinos all over the US, and one of their most important resorts is the one located in Las Vegas called Caesars Palace Las Vegas Hotel and Casino. The thing with this facility is that its shares have fallen by 30% during last year, which is a perfect opportunity for people such as Burkle to act and acquire it, should both sides agree to it.

However, Burkle is not the only investor who has set an eye for this Caesar’s property as a couple of others expressed their desire to obtain it, one of the most prominent investors being Carl Icahn, who is already a holder of 10% stake in Caesars. Icahn was successful in his effort, naming three new board directors. These new executives have big plans for Caesars and even plan to offload it or merge it with some of the rival firms such as Eldorado Resorts Incorporated and MGM Resorts International.

Burkle’s Intentions

According to PageSix’s article, the Yucaipa Companies were established in 1986 by Burkle and have managed to become very successful, being dedicated to revitalizing fortunes of companies that are underperforming. At the moment, they have stakes in many retailers such as Barneys New York Incorporated, Tesco, and more.

If the acquisition takes place and the Rio All-Suite Las Vegas Hotel and Casino becomes a property owned by Burkle, he plans to name Scott Sibella a new boss of the property. Scott Sibella has a lot of experience in managing and leading casinos, as he has recently quit his job as President and Chief Operating Officer for MGM Grand which is located near Burkle’s possible future casino.

Who Is Burkle?

Ronald Wayne Burkle was born in November 1952 and is currently 66. He is one of the most popular American investors and philanthropists, and his major company is The Yucaipa Companies, LLC, which he co-founded and manages to-date. His net worth is estimated to be approximately $2 billion at the moment, which puts him on the 633rd place on the Forbes’ list of the richest people in the world.

Furthermore, Burkle has been a political activist for quite a while now, supporting the Democratic party and being a fundraiser.

Some of his most important work includes merging and acquiring supermarket chains such as Fred Meyer, Ralphs, and Jurgensen. Furthermore, he even had stakes in 35 companies but eventually reduced that number by merging companies.

The future of Caesars is definitely at stake, and it will be interesting to follow how things are going to work out for this casino company and all the 25 casinos that they own.

Caesars Entertainment Casinos Published Report with Excellent Results

Caesars Entertainment Casinos has been doing an excellent job for the past year, and that is clearly visible in the unaudited financial results for 2018 that they had recently published. One thing that stands out is the year-on-year increase of 2.7%, which resulted in net revenues of approximately $8.39 billion.

The casino corporation published a report on Thursday as a part of an official press release which states that they managed to collect $224 million in enterprise-wide net revenues. One of the main reasons for those outstanding results is purchasing Centaur Holdings, which is an operator from Indiana. According to the firm, its Las Vegas operations managed to record a year-on-year rise of 2.5%, which translates to takings of approximately $3.75 billion. Moreover, other businesses of Caesars Entertainment Corporation which are located inside the United States managed to have a 4.2% rise which resulted in about $4.04 billion.

It’s not all sunshine and rainbows

The company from Nevada stated that the results may look good on the surface, but that the reality is a little bit different. When Centaur Holdings and Las Vegas are taken out of the picture, other businesses they own in the US actually show a drop of 1.6% in year-on-year comparison. They stated that the main result for this drop was the “increased competition” that had appeared in places such as Atlantic City. AC is definitely one of the most competitive places at the moment as casinos there are all doing a pretty good job in attracting new customers and promoting their services and products. Nevertheless, they are likely to overcome this problem as all other results show a significant improvement.

Frissora is content

Mark Frissora, CEO of Caesars Entertainment, is known all over the casino industry as a very outgoing person who is always happy to discuss business with everyone. He stated that the results that were received for 2018 actually represent the fourth year straight where the corporation managed to have higher net revenues.

In his statement, he said that Caesars Entertainment Corporation’s solid performance was a result of further improvement of labor productivity and over $140 million of marketing efficiencies. Furthermore, he added that their casino properties, including the ones in Las Vegas and Indiana, had also performed pretty well.

All things considered, the company has managed to gain a net income of $303 million, which is a huge improvement given that they had a deficit of $368 million in 2017. Firssora stated that 2019 would be the year when Caesars Entertainment Corporation would implement more efficiency, as well as growth initiatives such as expanded sportsbetting services. Furthermore, he stated that the company would make additional value-added investments and that one of the targets for investments would be Caesars Forum meeting center which is located on the Las Vegas Strip. In fact, Frissora said that the priority of the company for the next couple of years would be to de-lever the balance sheet.

There is no doubt that some turbulent times are behind Caesars at the moment, but the future is unpredictable and could bring a lot of potential hardships. Officials will have to put a stop to any issues and take the right steps in order to help Caesars remain what it is today – one of the most popular casino companies in the world. It is also true that competition had been stronger than ever in the USA and that it takes both efficiency and creativity to outsmart them and remain in the leading position.

Caesars Inked a Partnership Deal with DraftKings

One of the biggest casino operators that focuses on land-based casinos, Caesars Entertainment Corporation, has announced that they are about to sign a deal with DraftKings Incorporated that will help DraftKings have increased market access for their sportsbetting and daily fantasy sports.

The firm, which has headquarters in Las Vegas, issued an official press release on Monday, which explains in detail how the alliance between DraftKings and Caesars could benefit both companies. It will give Caesars an opportunity to use DraftKing’s gaming products across certain states where Caesars operates land-based casinos. The deal is a multi-year arrangement that aims to provide benefits not only for companies but also their customers. Furthermore, according to the deal, the relationship between the two companies will be “subject to the passage of time.”

The Executive Shared Their Thoughts

The Chief Executive Officer and President of Caesars Entertainment Corporation, Mark Frissora, stated that the deal was made in such a way that Caesars received “equity” in DraftKings Incorporated. In other words, Caesars will be listed as the official casino resort partner of this Boston-based innovator and that the two companies will collaborate in the states where this type of collaboration is possible.

Furthermore, Frissora added that the agreement reached between the two companies was described as a multi-state partnership and that it would bring the established leaders from the daily fantasy sports and sportsbetting industry that would help provide customers with more options. Frissora explained that the alliance was the result of the initiative by Caesars Entertainment Corporation, which had a goal to capitalize on their database, generate additional revenue streams, and raise their profile when it comes to sports. One of the additional ways to do that is to create brand new sport-themed experiences for guests at Caesar’s resorts all over the USA.

Finally, Frissora said that the partnership would allow his firm to continue offering their own branded online casino and sportsbetting apps in every jurisdiction where it was allowed. Furthermore, they would continue maintaining their primary access in every state as regulated under the agreement.

DraftKings was the first company to incorporate sports betting activities into their offer aster the sportsbetting ban was lifted. It was available for punters who live in New Jersey, and CEO Jason Robin was eager to expand their influence to other states as well. Therefore, one of the key steps that they have taken includes joining forces with Caesars in order to improve their offer. In other words, they have an opportunity to work with one of the most important land-based casino operators in the world, which is not a chance that many companies get. Robins stated that the deal with Caesars would help their “national roll-out process” happen much faster. The services offered by DraftKings will have an opportunity to reach potential customers in the parts of the US where that was not possible before.

Robins also issued an official statement where he said that they were looking forward to collaborating with Caesars Entertainment Corporation in order to create some of the most engaging and entertaining sports and customer-oriented events.

Two powerful companies are now working together and they have huge plans for the future. Both Caesars and DraftKings are eager to go all the way and revolutionize the way we perceive and engage in sports betting and casino games. For now, they are going to work closely together and see how to improve their businesses for the best, thus improving customer experience. Stay tuned to see how these two companies are going to work together in the future and what possible products can come out of this relationship.