BUSINESS

Caesars crawling back to IPO land; Rep. Bono Mack to chair second hearing; Foxwoods slots keep dropping

TAGs: Bono Mack, Caesars Entertainment, Foxwoods

CaesarsCaesars Entertainment has rehashed plans to embark on an IPO thanks to a change in market conditions. Their filing with the Securities and Exchange Commission on Tuesday morning explains their desire to raise $50million by selling an unspecified number of shares. A year ago, in the Harrah’s days, they were hoping to raise around $532m. Whichever figure it is, KDP Investment Advisors gaming analyst Barbara Cappaert tells clients that it’s “a drop in the bucket for a company with just over $19 billion in debt.” It comes after Gary Loveman announced the firm would be ready for the online gambling industry in “12-14 months” of legislation passing. This is coming from someone with a predictions track record like reeks of someone who’d struggle telling you which way the wind’s blowing whilst standing in its midst.

Talking of optimism behind federal online poker, Republican Mary Bono Mack has announced she’s to chair a second hearing on the subject this Friday. “Internet Gaming: Regulating in an Online World” will look at how consumer and stakeholders will be affected by legislative changes. Bono Mack was cautious after the first hearing of rushing ahead with legislation and has called the second hearing so that all potential ramifications are covered. A witness list will be announced in the next few days.

Foxwoods are aiming to launch a free-play site in the near future and if it’s as woeful as their slot revenue, the company is in trouble. Figures for September were bad. October has made the outlook even bleaker. Slot revenue was down 11.2% to $50.9m compared with last year as the handle suffered the same fate as it dropped 14.4% to $596.8m. Don’t worry as CEO Scott C. Butera had the excuses at the ready: “The snowstorm that paralyzed the northeast cut into our business at the end of the month.” What happens when freak weather events aren’t there to save the day is anyone’s guess.

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