Nevada gaming regulators described Caesars Entertainment’s operating unit’s bankruptcy as “embarrassing”, among other interesting comments, at a hearing on Thursday. The bankruptcy was discussed as to how it applies to the company’s gaming licenses in Nevada. Commissioner Randolph Townsend asked Caesars, “Can you not build anymore Ferris wheels for a while?” This refers to the High Roller observation wheel in the Linq Complex, a half-billion dollar project. Ridership on the High Roller has hovered around 5,000 people. It was projected to handle more than twice that amount.
The bankruptcy is not just affecting bondholders of Caesars. A total of 63 pensioners are no longer receiving payments. These former employees of the company are considered unsecured creditors.
A California man is suing Venetian and its sister property Palazzo in Las Vegas. The lawsuit alleges that Venetian did not properly disclose its $28 per night resort fee when the plaintiff reserved a room for three nights in June 2014. The complaint states that the fee was not disclosed until after the reservation process. This is not the first time Venetian has been the subject of a lawsuit over resort fees. The company prevailed in a 2012 lawsuit making the same allegations.
Resorts World will break ground for its new Las Vegas resort on May 5. The property is being developed by Genting, an experienced operator from Asia. The resort will include a Great Wall of Chine replica along Las Vegas Boulevard. It will be the first new themed casino in Las Vegas during the past decade and the first new casino built from the ground up since Cosmopolitan opened in December 2010. The date is one day after Riviera will be shuttered.
Stockton University acquired the former Atlantic City Showboat property for $18 million. It apparently was unaware of a property covenant that prevents the resort for being used as anything but a casino-resort. This was included in a land deal between Trump Entertainment and the Showboat developer. Stockton representatives attempted to negotiate a settlement to the covenant, but have been unsuccessful. Trump Entertainment demands compensation to waive the terms of the deal. Stockton suggested it will sell the property.
A new report suggests that a new buyer will emerge for the bankrupt Revel property. Northjersey.com reports that Howard Milstein and Carl Goldberg will make a bid substantially higher than the $82 offered by Florida developer Glenn Straub and his Polo Holdings company. This may create another delay in the bankruptcy court hearing to dispose of Revel. Current tenants and a dispute with the connected utility plant have attributed to the inability to sell the property that closed in September 2014.