LuckyPhow
LuckyPhow
Joined: May 19, 2016
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RogerKintMission146MaxPen
June 29th, 2021 at 8:48:21 AM permalink
Billionaire Brawl Over Caesars Should Concern NGCB

This article asks is NGCB just asleep? Or, afraid? Apollo bought Caesars, but the new book referenced in this article suggests Apollo -- and its senior managers -- may not be the most desired gaming proprietors in Nevada. However, some question whether the Nevada Gaming Control Board (NGCB) has the backbone to stand up to bullying by Apollo.

C'mon, why haven't the other WoV sharpies followed such juicy chicanery? This (somewhat lengthy) article calls the buyout battle a Billionaire Brawl. Even if gamblers think they have no dog in this fight, they should perhaps keep an eye on what's happening.

Taken together, these two articles suggest to me a possible Apollo steamroller if NGCB gives it the green light to operate casinos. It might or might not be good for Nevada gaming. I claim no special knowledge. Does anyone else have information to share? (Information preferred to innuendo, rumor, and wild guesses, but you decide what to share, OK?)
billryan
billryan
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Mission146
August 5th, 2021 at 8:52:20 AM permalink
I just saw the most confusing segment on Mexican TV where they were saying a company named Ricci(sp?) owned Caesars and was buying both the Sands properties in Las Vegas but also 15 MGM owned casinos. Now my Spanish is not good, which is why I try and watch an hour or so a day, but is this correct?
If someone is going to own both the old Harrahs properties and the MGM properties, what does that mean for the future?
Mission146
Mission146
Joined: May 15, 2012
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August 5th, 2021 at 9:00:04 AM permalink
Quote: billryan

I just saw the most confusing segment on Mexican TV where they were saying a company named Ricci(sp?) owned Caesars and was buying both the Sands properties in Las Vegas but also 15 MGM owned casinos. Now my Spanish is not good, which is why I try and watch an hour or so a day, but is this correct?
If someone is going to own both the old Harrahs properties and the MGM properties, what does that mean for the future?



Vici Properties is a Real-Estate Investment Trust (REIT) that owns many casino real properties, most of which they lease out to Caesars Entertainment who operates the casino aspect of operations.

This is a very common occurrence and we also see it with the REIT, Gaming and Leisure Properties, who leases out many properties that they hold to Penn National Gaming.

In fact, Penn National Gaming, 'Sold,' the Tropicana Las Vegas to Gaming and Leisure Properties during Covid-19 which, in effect, was the same thing as just giving them the property in exchange for not having to make their lease payments on their other holdings while the properties were closed.

It is also for this reason that publicly traded casino stock values tanked during the early stages of Covid-19 pandemic when compared to the casino REITs, to wit, the REITs actually own something of physically tangible long-term value.

Anyway, the REITs often work closely with a particular casino company, but that doesn't always have to be the case. They can certainly acquire real property to lease to other casino companies, if they wish. They are, technically, separate companies, after all.

Perhaps not so much now, but originally, the concept of these REITs would protect the real property in the event that a casino operating company were to go bankrupt and have to liquidate their assets. At least, that's one of the reasons for it.
https://wizardofvegas.com/forum/off-topic/gripes/11182-pet-peeves/120/#post815219
billryan
billryan
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Mission146
August 5th, 2021 at 9:11:48 AM permalink
So Vici will be the landlord of all the properties but Caesars and MGM will continue to operate as different companies? Is that the gist of it?
TDVegas
TDVegas
Joined: Oct 30, 2018
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Mission146
August 5th, 2021 at 9:11:59 AM permalink
One has to wonder if gaming control has any say or opinion about these massive real estate deals and who they are being sold to. Is there any type of due diligence as far as checking executives or board members of these companies that are effectively buying up every inch of casino real estate?
Mission146
Mission146
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August 5th, 2021 at 9:13:28 AM permalink
Quote: billryan

So Vici will be the landlord of all the properties but Caesars and MGM will continue to operate as different companies? Is that the gist of it?



I don't know anything about it. I was just explaining how REITs relate to casinos.
https://wizardofvegas.com/forum/off-topic/gripes/11182-pet-peeves/120/#post815219
Mission146
Mission146
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TDVegas
August 5th, 2021 at 9:14:12 AM permalink
Quote: TDVegas

One has to wonder if gaming control has any say or opinion about these massive real estate deals and who they are being sold to. Is there any type of due diligence as far as checking executives or board members of these companies that are effectively buying up every inch of casino real estate?



I like your sense of humor.
https://wizardofvegas.com/forum/off-topic/gripes/11182-pet-peeves/120/#post815219

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