Caesars Completes Harrah's Philadelphia Sale

1166
December 31st, 2018
Back Caesars Completes Harrah's Philadelphia Sale

Multi-national gambling corporation, Caesars Entertainment has successfully closed the chapter on Harrah's Philadelphia real estate assets sale by clinching a deal with VICI Properties, the new owner of the said property.

The assets were sold for $82.5 million in cash. The purchase price was reduced reflecting some lease modifications as well as some other terms and aspects of the acquisition that the two brands have agreed upon. The venue will, for the time being, remain a part of the Caesars network and will continue to be branded Harrah's as this is financially advisable due to the brand's value.

Harrah's Philadelphia submitted an official sports betting license application to Pennsylvania Gaming Control Board a few months ago.

Market Modifications

The two companies have made lease modifications to Caesars Palace Las Vegas and non-Caesars Palace Las Vegas leases...

...These should make those lease terms more in line with precedents from other markets as well as long-term performance of the properties. Near-term increase in rent for VICI as well as volatility in Caesars' rent payments to VICI are moderated by these change, with the addition of facilitated development plans Caesars has for Las Vegas East Side Strip.

CEO and President of Caesars Entertainment, Mark Frissora, commented:

“The completion of this transaction with VICI provides Caesars with financial flexibility and reduces the volatility of our future rent payments, demonstrating our commitment to creating value for our shareholders while maintaining financial discipline."

Turning to Millennials

2018’s final days are keeping Caesars' divisions very busy - the one working on Linq property in Las Vegas, is hard at work trying to figure out the way to the hearts of that demanding and eluding demographic: the millennials.

In order to attract this particular generation of people to their brand of entertainment and gaming experience, the company has begun testing the so-called Fan Cave, due to be completed in 2019's Q2...

...Basically, Caesar's calls it, 'the casino of the future,' and this 44,000 square-foot undertaking is really the lab that will serve as a trial ground for new concepts that, if proven successful, will be leveraged up to other venues.

The Fan Cave's experimental spaces will consist of virtual reality games (that will put more emphasis on the social aspect and mobile experience), skills based slots, digital bar, LED screens, Xbox and more amenities.

Other than those, visitors can partake in regularly held tournaments, sports betting with visible leaderboards and there's even the option of renting the Cave in case they plan spending from $100 to $1500 on food and beverages.

Source:

"Caesars Entertainment Announces Completion of Harrah's Philadelphia Sale and Lease Amendments", Zoltan Tundik, europeangaming.eu, December 27, 2018.

“clinching a deal with VICI Properties”

Land Based Casino News
Back to articles
Play at US friendly Bovada now!

Search

Search Results

Select language

English English

Don't show this again

Share on Facebook

Share on Twitter

Share