While a lot of international casino operators have reaped the financial whirlwinds of Macau, Caesars Entertainment has had nothing to show for it, shut out of any opportunities because the Macau government has yet to add more licenses to the six current ones.
Caesars did have plans to land in Macau and its purchase of a 175-acre golf course in Macau back in 2007 signaled the company’s intentions to be a serious player in the Macau casino scene. But no licenses were given during that time and Caesars officially gave up any hope of operating in Macau, selling the aforementioned golf course to Asian developed Pearly Dynasty Investments for $438 million.
Considering that Caesars paid $578 million for the property back six years ago, it’s safe to say that the investment saw the company accomplish something no other operator has ever done in Macau: take a huge loss.
Notwithstanding the deep-seated irony of Caesars’ foibles in Macau, the company is expected to use part of the net proceeds, approximately $420 million after commissions and closing costs, to help alleviate its billions in debt.
For now, Caesars is probably looking at itself in the mirror and think why it’s been striking out in all these gambling jurisdictions. Macau was never an option because it was too late to the party and it later on relied on false hope that it would eventually be invited. It was an invitation that ultimately never came.
And speaking of invitations, Caesars was supposed to have a chance at securing a Massachusetts casino license, but its partner, Suffolk Downs, decided to do business with another developer whose name doesn’t spell C-A-E-S-A-R-S, leaving poor (Julius) Caesars again out in the cold. Then again, it can take solace in the development that Suffolk Downs’ bid to land that East Boston casino fell into the toilet after voters shut down its casino dreams on Tuesday.
Misery loves company, Suffolk Downs. Caesars knows that all too well.
