Buy-out firms Apollo and TPG have written off around USD 600m (GBP 321m) of their investment in American casino business Harrah’s, in the biggest ever known private equity markdown. The writedowns equate to more than 20pc of the value of the private equity houses‘ investment in Harrah’s. Apollo and TPG, the private equity house that walked away from Bradford & Bingley last month, paid USD 17bn for Harrah’s in January, but since then economic woes have hit US gaming companies hard.
Faced with uncertainty about the future of the economy, Harrah’s announced last month that it has slowed construction on the USD 700 Margaritaville Casino and Resort on the beach in east Biloxi. MGM Mirage, parent company of the nearby Beau Rivage, said earlier this spring it had laid off 100 people between the Biloxi and Tunica County properties. As consumers‘ expendable income shrinks with the rising cost of food and gas…
Despite concerns about the regulatory and tax environment in the UK, Harrah’s Entertainment seems to be ready to take another punt on the nation. The company announced it had hired London-based Insight Public Affairs as an adviser to compete for new gaming licenses in the United Kingdom. Eight large casinos – with up to 150 slot machines and jackpots up to USD 7,931 – are up for grabs, to be opened in Leeds, Southampton, Great Yarmouth, Middlesbrough, Solihull, Hull, Milton Keynes and Newham.
Cherokee – Harrah’s Cherokee Casino plans to continue with a USD 650 million expansion to double its gambling floor space by 2012 even though the gambling business is taking a hit in the economic downturn. Harrah’s Cherokee is one of western North Carolina’s largest employers with 1,800 workers. The Eastern Band of Cherokees pays Harrah’s to run its casino.
St. Louis — About 1,000 people were evacuated from Harrah’s St. Louis Casino and Hotel this morning after a fire started inside an exterior wall. Pattonville Fire Department Battalion Chief Robert Murray said that the casino called around 9 a.m. saying smoke was filling a stairwell. The fire broke through the building’s outer wall and was quickly extinguished by a crew waiting outside, Murray said.
US gambling giant Harrah’s is embarking on a covert lobbying drive as it attempts to get the green light to run a number of casinos across the UK. The Las Vegas-based firm wants to capitialise on the Government’s plans to build 16 new casinos and has hired Insight Public Affairs in an attempt to win over ministers. The move is revealed in the latest register compiled by the Association of Professional Political Consultants (APPC).
New Jersey regulators Wednesday granted new 5-year licenses for the four Atlantic City casinos owned by Harrah’s Entertainment Inc. The Casino Control Commission also approved affiliates of Apollo Management and TPG Capital as owners of the Harrah’s Casinos. Apollo and TPG, two private equity firms acquired Harrah’s Entertainment in January in a USD 17.1 billion deal that includes the Harrah’s Resort, Bally’s, Caesars, and Showboat casinos.
About 25 people took part in a brawl at the VooDoo Lounge in Harrah’s Casino in North Kansas City, it was reported today. The incident began as police officers attempted to arrest a number of suspects at the casino’s lounge, but the suspects fought back. Two police officers were called by the casino management to quell a previous disturbance, but the officers were attacked while they were trying to deal with a woman who had been involved in the dispute, North Kansas City Sgt. John Stark told the press.
Memphis, Tennessee (AP) – A casino south of Memphis was shut down for almost 12 hours because a storm knocked out electricity. Harrah’s Casino in Tunica, Mississippi, is back in business after lightning blew out a transformer. The Mississippi gaming commission told Harrah’s to shut down because some of the casino’s surveillance equipment was not working. The casino closed from 9:30 Monday night until 8 Tuesday morning.
Casino operator Harrah’s Entertainment reported last week that it swung to a first-quarter loss, citing costs associated with a deal to take it private and „challenging economic conditions.“ The world’s largest gambling company by revenue said it had a net loss of USD 187.8 million, compared with profit of USD 185.3 million in the same quarter a year earlier. It did not report shareholder earnings, after its sale in January to affiliates of Apollo Global Management LLC and TPG Capital LP.
Las Vegas: Harrah’s Entertainment says its board of directors has decided to change the casino company’s name to Caesars Entertainment Corporation. Harrah’s chairman Gary Loveman says the name change will give the company greater prestige and more international name recognition. Harrah’s acquired the Caesars brand through a merger in 2005, making it the world’s largest casino company by revenue.
If you’re entering this year’s World Series of Poker and you plan on celebrating a winning hand by calling your friends from the table during an emphatic victory dance, the new additions to the WSOP rulebook may be on interest to you. Harrah’s Entertainment has released the 2008 World Series of Poker rulebook with a few additions and modifications, most notably the one that will curtail excessive celebrations at the table.