Debt-laden gambling firm Caesars Entertainment plans to reform its IPO due to the increasing concerns of market volatility. Heads of Planet Hollywood, Flamingo and Caesars pointed out that there is a positive trend in the leisure travel market. Also, if legalization of online gambling becomes a reality in the US, another attractive market will be created.

Caesars Entertainment Experiencing Debt Crisis

According to a recent regulatory filing, Caesars has over $20 billion debt currently. The company has been struggling to recover from its financial crisis since it was purchased by Apollo Global Management in 2006. Las Vegas, the prime market of the company, has been hit badly due to recession and economic slowdown. MGM Resorts’ $9 billion project in Las Vegas too, worked against Caesars.

Caesars suffered when it is not allowed to operate in the Macau market. It is an attractive market for online gambling operators. Caesars was not able to obtain a license to operate in the Macau market. However, its rivals, like Wynn Resorts and Las Vegas Sands, are earning big in Macau. Due the presence of large firms, the Macau market has grown bigger than Las Vegas.

World Series of Poker’s Owner will be the Key Beneficiary of Online Gambling Legalization

If online gambling is legalized in the United States, Caesars, which owns the World Series of Poker, will be the key beneficiary. Caesars stated that it is in a much better position compared to its competitors to avail the new opportunities that the US online gambling market is likely to offer. The company plans to raise its IPO by $50 million. The figure is much less than what it planned to raise last year.

Caesars Entertainment Lobbying for Online Gambling Legalization in the US

Caesars Entertainment is lobbying for the legalization of online gambling in the US. The company believes that the US market is attractive and Caesars will have ample scope to increase its revenue if it is allowed to offer games like online roulette in the country.

Caesars Failed in Influencing Investors

Due to the financial turmoil that Caesars is going through, the company has not been successful in influencing its potential investors. Investment firms failed to see growth in the company, in its key markets of Las Vegas and Atlantic City. However, Caesars which operates close to 52 hotels, casinos and also owns the popular brand, World Series of Poker, reported that its debts narrowed this year. The losses reduced to $467 million this year from $634.4 million last year. Operating expenses of the company have reduced considerably.

Caesars’s Chairman Claimed World Series of Poker to Pay out Much Better than the New York Yankees

The World Series of Poker recently concluded by paying around $209 million to players. According to Caesars’s chairman, Gary Loveman, the amount paid by the WSOP is much higher than what the New York Yankees pay. The chairman said that Caesars will need around a year or so to get an online gambling website running in the US.