Caesars Entertainment lost a bid to hold off a lawsuit involving the bankruptcy of its operating unit this week. That caused the stock price to collapse 40 percent on Wednesday. The fear by investors is caused by the lack of protection of the parent company’s assets by the bankruptcy of the smaller operating unit. This could force the entire company into bankruptcy, which would potentially cause a restructuring and breakup of the company. A bankruptcy of the parent company could make the company’s stock virtually worthless.
The Coeur d’Alene tribe lost an appeal in the Ninth Circuit this week in an attempt to offer poker at its Idaho casino. The poker room was shut down last year through a court order. The tribe lost the initial court battle and has now lost its appeal. The Ninth Circuit ruled that poker is explicitly illegal under the Idaho state constitution. Slots and bingo are still permitted at Idaho tribal casinos.
The Las Vegas Club has been the subject of rumors that it would be converted into a CVS for years. Those plans are finally official and were met with opposition by other casinos. The CVS would offer package liquor sales, something the casinos oppose. In 2014, casinos on Fremont Street successfully won a moratorium and other restrictions of packaged alcohol sales on the Fremont Street Experience. It was thought that patrons were using the liquor stores as a way to purchase discount liquor to consume in the street.
A decision on the Las Vegas Club was pushed to next month at the Las Vegas City Council. If it passes, the Las Vegas Club would close temporarily to make room for the CVS to be carved out of its footprint.
The New Jersey Senate Committee on Government, Wagering, Tourism and Historic Preservation approved a bill this week that would remove a deed restriction on Showboat in Atlantic City. Stockton University purchased the property from Caesars Entertainment after the casino was shuttered last year. The property came with a deed restriction that requires the property to be used as a casino. No other uses are permitted under the restriction. Trump Taj Mahal created the agreement in 1988 with Showboat owners at the time. Trump Taj Mahal has been unwilling to drop the covenant out of fear that underage students at the university would attempt to access the casino.
The Seminole tribe’s gaming pact with Florida is set to expire at the end of the month. The current deal gives the tribe exclusivity in Florida to blackjack and other house banked games. In exchange, the state receives $200 million a year in taxes. No new agreement has been made between the two parties. The Seminoles are pushing to send the situation to mediation if it is not resolved soon.
Aliante Casino opened a three-table electronic poker room this week. The casino, located on the outskirts of North Las Vegas, closed its poker room in 2012. The new room uses PokerPro tables, the same ones found at Plaza in downtown Las Vegas. Aliante Casino also recently launched a new sports betting app.