Caesars Online Gambling Venture Drives Stock Up

Published Wednesday, July 10, 2013 - Online-Casinos.com
Caesars Online Gambling Venture Drives Stock Up

The gambling industry in the USA has a few giant operators and one which has been developing mountains of debt is Caesars Entertainment Corporation the largest owner of casinos in the States.

Recent news that Caesars Entertainment and Caesars Acquisition are forming Caesars Growth Partners, a venture for online gambling as well as some casinos has brought renewed interest from investors. Caesars Entertainment rose 13 percent to $15.91 in New York after reaching $16.36, to mark the biggest one day advance since April 23. The Las Vegas-based resort and gambling firm’s stock has more than doubled this year. As the roll out of legal online poker is continuing in Nevada Caesar’s value rose as much as 16 percent after moving ahead with plans to offer approximately $1.18 billion USD in stock in its emerging interactive gambling venture.

According to the recent filing Apollo Global Management LLC and TPG Global LLC, which hold about 70 percent of Caesars Entertainment, plan to exercise at least $500 million of their rights.

Caesars $21.1 billion USD of long-term debt is the reason behind the move to create a venture to finance growth investments and bolster the parent company’s bottom line. Growth Partners’ businesses include Caesars Interactive Entertainment, which would offer social and mobile games, run the World Series of Poker and control the company’s regulated online gambling operations. Three states, including Nevada and New Jersey, have legalized internet based casino games and gambling and there are more states that are planning to do the same.

The Caesars Growth Partners other concern Casino Properties and Development, is expected to include interests in the Planet Hollywood Resort & Casino in Las Vegas, a future project in Baltimore, and a share of management fees from those properties. The restructuring of the mega company and the potential for online gambling success has given the firm a new positive perspective that investors see an advantage in.

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