Caesars Entertainment Corporation

  • Overview

Caesars Entertainment Corporation (formerly Harrah's Entertainment) likes to spread its bets. The firm owns and/or operates more than 50 casinos (under such names as Harrah's, Horseshoe, and Rio) in 13 US states and seven countries. Altogether its facilities -- including hotels, dockside and riverboat casinos, and Native American gaming establishments -- boast more than 3 million sq. ft. of casino space and some 43,000 hotel rooms. Among its many locations on the Vegas Strip are Caesars Palace, Paris Las Vegas, and Planet Hollywood. The company went public in 2012, more than a year after it cancelled a previous IPO.

IPO

Caesars raised only around $16.3 million in its 2012 IPO, a small fraction of the $50 million it had hoped to gain.  These numbers are significantly more modest than its 2010 plans, when the firm had hoped to raise up to $532 million. In the 2012 offering, Caesars ended up selling only 1.4% of itself in one of the smallest IPOs in recent history. The company is using the proceeds for general corporate purpose and to make a dent in its long-term debt, worth a whopping $19.6 billion.

Geographic Reach

The majority of the company's casinos operate in the US, primarily under the Caesars, Harrah’s, and Horseshoe brand names. The company’s land-based casinos include nine in England, two in Egypt, one in Scotland, one in South Africa, and one in Uruguay.

Operations

The firm owns or operates a total of more than 52 casinos. Its casino entertainment facilities include 33 land-based casinos, 11 riverboat or dockside casinos, three managed casinos on Indian lands in the US, one managed casino in Cleveland, Ohio, one managed casino in Canada, one casino combined with a greyhound racetrack, one casino combined with a thoroughbred racetrack, and one casino combined with a harness racetrack.

In addition, through Caesars Interactive Entertainment, Inc., a majority-owned subsidiary, the company owns an online gaming business and the World Series of Poker tournament brand.

Financial Performance

The company's revenue dipped a little from the norm in fiscal 2012. The company reported $8.56 billion in revenue for the year after claiming roughly $8.8 billion in fiscal 2010 and fiscal 2011. While 2012 revenues were flat or declining at properties in the Midwest and Atlantic City, Caesars showed modest gains in Las Vegas, a market that is beginning to recover from a down economy.

Strategy

In 2012 the company sold its Harrah's St. Louis casino to Penn for a purchase price of $610 million. Also in 2012 Caesars entered into a definitive agreement with Enjoy S.A. to form a strategic relationship in Latin America. Under the terms of the agreement, Enjoy will acquire 45% of Baluma S.A., the company’s subsidiary which owns and operates the Conrad Punta Del Este Resort and Casino in Punta Del Este, Uruguay for about  $140 million in cash and stock.

Mergers and Acquisitions

In late 2012 the company purchased the assets of Buffalo Studios, a social and mobile games developer and owner of Bingo Blitz, for $45.9 million. Also that year Caesars purchased the assets of Bubbler Media, a social and mobile games developer based in Belarus, for $7.5 million.

Back in 2011 Caesars acquired an interest in Sterling Suffolk Racecourse ("Suffolk Downs"), which owns a horse-racing track in Massachusetts, along with an option to purchase additional interests and the right to manage a potential future gaming facility.

Ownership

Caesars Entertainment is majority-owned by Hamlet Holdings, an affiliate of Apollo Advisors and TPG Capital

Company Background

The company (then called Harrah's) became the world's #1 gaming firm, jumping over the merged MGM Resorts/Mandalay combination, when it acquired rival Caesars Entertainment Inc. for $9.4 billion in cash, stock, and debt in 2005. Harrah's itself was acquired by Apollo and TPG, who together make up Hamlet Holdings, in a deal worth some $30 billion in 2009. The following year the company changed its name from Harrah's Entertainment to Caesars Entertainment Corporation to capitalize on the Caesar's name, which it sees as "the world's preeminent and most respected casino brand."

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Caesars Entertainment Corporation


1 Caesars Palace Dr
Las Vegas, NV 89109-8969
Phone: 1 (702) 407-6000
Fax: 1 (702) 4076022
www.caesars.com/corporate

STATS


  • Employer Type: Public
  • Stock Symbol: CZR,
  • Stock Exchange: , NASDAQ
  • Chairman, President, and CEO: Gary Loveman
  • EVP, General Counsel, and Chief Regulatory and Compliance Officer: Timothy Donovan
  • Chairman, President, and CEO: Gary Loveman

Major Office Locations

  • Las Vegas, NV