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Caesars Entertainment Announces Sale of the Rio to Company Controlled by a Principal of Imperial Companies

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Caesars Gets FTC Clearance for Sale of Rio All-Suite Hotel and Casino
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Caesars Entertainment Corporation, one of the world’s most diversified casino-entertainment providers, announced it has signed an agreement to sell the Rio All-Suite Hotel & Casino (the “Rio”) to a company controlled by a principal of Imperial Companies (the “Buyer”) for $516.3 million, which implies a strong sales price to EBITDA multiple.

Under the terms of the agreement, Caesars will continue to operate the property pursuant to a lease for a minimum of two years and pay annualized rent of $45 million. The Buyer has the option to pay Caesars $7 million to extend the lease under similar terms for a third year.  At the end of the lease term and at the request of the Buyer, Caesars may continue to manage Rio or may provide transition services to the Buyer.

“This deal allows Caesars Entertainment to focus our resources on strengthening our attractive portfolio of recently renovated Strip properties and is expected to result in incremental EBITDA at those properties,” said Tony Rodio, CEO of Caesars Entertainment. “The retention of the World Series of Poker and retention of Caesars Rewards customers are all factors that make this a valuable transaction for Caesars.”

The agreement allows for co-ownership of Rio-specific guest data and places no restrictions on Caesars’ marketing activities. The Rio will continue to be part of the Caesars Rewards network during the lease term, and the transaction is not expected to result in any changes to the guest experience. The World Series of Poker will be hosted at the Rio in 2020 and hosting rights will remain with Caesars Entertainment thereafter.

Further details on the transaction are available in the Form 8-K to be filed with the Securities and Exchange Commission.  The transaction is expected to close in the fourth quarter of 2019, subject to regulatory approvals and other customary closing conditions.

 

About Caesars Entertainment:

Caesars Entertainment is one of the world’s most diversified casino-entertainment providers and the most geographically diverse U.S. casino-entertainment company. Since its beginning in Reno, Nevada, in 1937, Caesars Entertainment has grown through development of new resorts, expansions and acquisitions. Caesars Entertainment’s resorts operate primarily under the Caesars®, Harrah’s® and Horseshoe® brand names. Caesars Entertainment’s portfolio also includes the Caesars Entertainment UK family of casinos. Caesars Entertainment is focused on building loyalty and value with its guests through a unique combination of great service, excellent products, unsurpassed distribution, operational excellence and technology leadership. Caesars Entertainment is committed to its employees, suppliers, communities and the environment through its PEOPLE PLANET PLAY framework. For more information, please visit www.caesars.com/corporate.

Forward-Looking Statements
This press release includes “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. You can identify these statements by the fact that they do not relate strictly to historical or current facts and by the use of words such as “expect,” “intend,” “may,” “continue,” “subject to,” and “will,” or the negative or other variations thereof or comparable terminology.  These forward-looking statements are based on current expectations and projections about future events.

You are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, the actual performance and results of Caesars may differ materially from those expressed or implied by such forward-looking statements.  Such risks and uncertainties include, but are not limited to: the fact that the transactions contemplated by the purchase and sale agreement may not be completed on the terms contemplated or at all as they are conditioned upon receipt of regulatory approvals, counterparty lender and holder consents, other third-party approvals and other conditions; potential adverse reactions or changes to business, customer, management or employee relationships, including those resulting from the announcement or completion of the contemplated transactions; the possibility that the anticipated operating results and other benefits of the contemplated transactions are not realized when expected or at all; shutdown costs or transition costs at the end of the Lease Period; local risks including proximate competition, potential competition, customer retention, legislative risks, and local relationships; risks associated with increased leverage from the contemplated transactions, including the risk of non-payment by counterparty borrowers; and other factors described from time to time in our reports filed with the Securities and Exchange Commission.

You are cautioned to not place undue reliance on these forward-looking statements, which speak only as of the date of this filing.  Caesars undertakes no obligation to publicly update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this filing or to reflect the occurrence of unanticipated events, except as required by law.

 

Source: Caesars Entertainment Corporation

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Gambling in the USA

Gaming Americas Weekly Roundup – May 22-28

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Welcome to our weekly roundup of American gambling news again! Here, we are going through the weekly highlights of the American gambling industry which include the latest news and new partnerships. Read on and get updated.

Latest News

Tipico Sportsbook announced the launch of “Swing for the Fences,” an MLB contest in which bettors play for a chance to win their share of over $100,000 in monthly prizes. The contest is available to customers in Tipico’s operating states of Ohio, New Jersey, Colorado and Iowa.

Ohio Governor Mike DeWine has nominated Michelle Gillcrist as Director of the Ohio Lottery Commission. Gillcrist was named interim director in April. Prior to her appointment as interim director, Gillcrist served DeWine in various capacities during his tenure as Governor, Ohio Attorney General and United States Senator, most recently as Governor DeWine’s Northern Ohio Regional Liaison and the Governor’s Aerospace and Defense Liaison for Northeast Ohio.

Maverick Gaming announced the launch of its new “Ace’s Poker” room in the city of Mountlake Terrace, Washington. This exciting new poker brand is the first in the state and represents the continuous investment in Maverick Gaming’s strategy to redevelop and connect its properties across its regional footprint.

DoubleDown Interactive, a leading developer and publisher of digital games on mobile and web-based platforms, announced a $10,000 donation to the ASPCA (The American Society for the Prevention of Cruelty to Animals) in support of its mission to provide effective means for the prevention of cruelty to animals throughout the US.

Thunder Valley Casino Resort is going to celebrate its 20th anniversary this June. The casino opened its doors in 2003, and since 2011, has been rated as a AAA Four Diamond award-winning resort.

Partnerships

SimWin Sports, the first AI-driven digital sports league and one of Web3’s most anticipated new gaming platforms, announced its new partnership with The Boston Legends, an ownership group spearheaded by Autograph. The latter is renowned for its co-founder, Tom Brady, an iconic NFL quarterback.

Canadian Elite Basketball League and BetVictor announced a national partnership that will see the international sports book align with the CEBL as its official Sports Betting Partner for the 2023 season as it expands its presence in Ontario and across Canada. The partnership will include a groundbreaking sports betting experience for CEBL fans across its broadcasts and media platforms.

Play.Works, the number one provider of Connected TV games and original TV channels, announced a partnership with Authentic Hendrix LLC and Experience Hendrix LLC to launch casual slots and video trivia games inspired by the lyrics and music of legendary guitarist Jimi Hendrix.

Baha Mar, the leading luxury resort in The Bahamas, and Quick Custom Intelligence announced the successful upgrade to version 5.2 of Quick Custom Intelligence’s Enterprise Platform. Version 5.2 enhances the award-winning QCI Platform with the automation of operational tools that become a central part of the daily management of a gaming facility.

Vegas Stats and Information Network (VSiN) is launching a new 24-hour sports radio format in New Hampshire. VSiN is launching the channel alongside Binnie Media, New Hampshire’s largest locally-owned media company. The new VSiN Radio 106.3 FM HD2 will deliver sports betting programming 24/7 year-round to the more than 1.5 million people Binnie Media reaches each week in New England and beyond.

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Gambling in the USA

Gaming Americas Weekly Roundup – May 15-21

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Welcome to our weekly roundup of American gambling news again! Here, we are going through the weekly highlights of the American gambling industry which include the latest news and new partnerships. Read on and get updated.

Latest News

International Game Technology PLC announced that Keith Cash, the Company’s Vice President and General Manager of Global Instant Tickets will be inducted into the Lottery Industry Hall of Fame as a member of the Class of 2023. Cash will be honoured later this year at an event hosted by the Public Gaming Research Institute.

Hard Rock International is bringing its unique brand of world-class entertainment to the historic city of Deadwood in the heart of the Black Hills National Forest. The Rocksino by Hard Rock project will celebrate a grand opening on August 8. The Rocksino by Hard Rock Deadwood is a boutique hotel & casino experience, which includes most of what fans of the Hard Rock brand have come to know but on a smaller scale than its famous integrated resorts in gateway international cities.

The online lottery ticket platform Jackpot.com has launched in Ohio, its second US state after it launched in Texas in January. Jackpot.com is also launching with a marketing partnership with one of the country’s premier professional sports franchises, the Cleveland Guardians.

BCLC is enhancing identification requirements at B.C. casinos this summer to support people enrolled in BCLC’s Game Break self-exclusion programme. While players will receive the same friendly, welcoming experience that they are used to when arriving at a B.C. casino, the enhancements will require every individual to present government-issued photo identification for entry.

NOVOMATIC has confirmed its attendance at the upcoming Peru Gaming Show (PGS) 2023 event, set to take place on June 14-15 at the Jockey Exposition Centre in Lima. At stand #53, the company will showcase its latest highlights for the region.

Partnerships

Las Vegas-based, cross-platform global games leader, Light & Wonder, has been selected to bring its portfolio of systems solutions driven by comprehensive technology to Mohegan INSPIRE Entertainment Resort.

Galaxy Gaming has announced that it has signed an agreement with Evolution Group for the licensing of Galaxy table game content across their portfolio of studios. The agreement runs for ten years and strengthens Evolution’s collection of online table games.

Major League Soccer announced that The Game Day, a leading sports betting entertainment website, will provide fans with expert tips on MLS bets and match preview highlights each week on the new Betting Hub on MLSsoccer.com.

IMG ARENA has extended its partnership with Major League Soccer to provide tracking data to MLS NEXT Pro. The extended agreement will see IMG ARENA integrate its deep tech, cloud-based platform to provide player and ball tracking data to MLS NEXT Pro to enhance their player performance analysis.

Appointments

The Board of Directors of the Campo Kumeyaay Nation’s Economic Development Corporation “Muht Hei Inc.” announced the appointment of Michael J. Broderick as the new General Manager of Golden Acorn Casino and Travel Centre.

Industry sales leader Lisa Carmona has joined the JCM Global (JCM) sales team, bringing with her a rich background and deep knowledge of digital signage and its impact on casino gaming customers. Carmona will be based in Las Vegas and will serve JCM customers in the Midwest.

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Gambling in the USA

Gaming Americas Weekly Roundup – May 8-14

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Welcome to our weekly roundup of American gambling news again! Here, we are going through the weekly highlights of the American gambling industry which include the latest news and new partnerships. Read on and get updated.

Latest News

WarHorse Gaming has announced plans to begin construction on its new gaming facilities in Omaha and continue with the next phase of construction at its Lincoln facility. WarHorse Gaming Omaha will feature roughly 1300 slots and 20 tables games once complete, of which more than 800 will be available when the first phase of the casino opens about a year after the start of construction.

Chasing Poker Greatness has announced that it has officially launched its first live cash poker course known as Live Cash Preflop Bootcamp. Chasing Poker Greatness is a well-known online poker website that publishes poker podcasts, sells online poker courses, offers private poker coaching, produces poker training videos and runs a coaching-for-profit (CFP) poker stable (the CPG Wolves).

ALT Sports Data, the leading source of official and unofficial alternative sports trading data unlocking millions of participatory fans and potential bettors for sportsbook operators, media platforms and event producers, has been named the winner of the third annual Ifrah Pitch Competition.

NorthStar Gaming Holdings Inc. announced it has closed its previously announced acquisition of Slapshot Media, a Canadian iGaming marketing and managed services company that specialises in providing managed services to Spreads.ca, an iGaming site owned and operated by the Abenaki Council of Wolinak.

Paysafe announced the launch of its revamped Skrill digital wallet for online betting in the Canadian province of Ontario. Developed specifically to meet the payment preferences of iGaming players, the upgraded Skrill wallet allows Ontarians to instantly fund wagers and effortlessly cash-out winnings while enjoying a streamlined and intuitive user experience (UX).

Scientific Games Chief Marketing Officer Jennifer Welshons has been named a 2023 Lottery Industry Hall of Fame Inductee, joining an elite group of global professionals. A pioneer in the area of analytics and insights, Welshons will be honored at a ceremony this fall during the North American Association of State and Provincial Lotteries 2023 Annual Conference.

Partnerships

GG.BET has partnered with Brazilian esports streamer Gaules, in doing so securing an official agreement with a broadcast of the BLAST Paris Major. The Ukraine-founded company will become the official betting partner of the Brazilian Portuguese language streams of the BLAST Paris Major, which will be distributed via Gaules’ – real name Alexandre Borba Chiqueta – Twitch channel.

Pragmatic Play has strengthened its foothold in Brazil after signing an agreement with local operator Vem Betar. As part of the deal, Pragmatic Play’s extensive portfolio of Slots, Live Casino and Virtual Sports content will be available to Vem Betar’s player base.

DraftKings Inc. announced the launch of the DraftKings Network on Samsung TV Plus, Samsung’s free ad-supported TV service (FAST), the first FAST service with DraftKings Network that also delivers over 250 live channels in the US and thousands of shows and movies on demand to millions of Samsung Smart TVs Galaxy devices, Family Hub appliances and on the web.

Liga FUTVE, the top-flight professional football league of Venezuela, announced that Stats Perform, the sports tech leader in data and AI, will be the competition’s official data partner for the next three years.

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