New Jersey Assemblyman Chris Brown has made it pretty clear that he doesn’t trust Caesars Entertainment and he is now calling on the state Casino Control Commission to publically review the company’s recent restructuring.
Brown said in a letter to the commission that he is concerned about the company’s health and its impact on local employment.
“For too long we have simply reacted and acquiesced to the corporate decisions of Caesars which have directly hurt our working families,” Brown wrote.
The commission has not responded, but a spokesman told the Press of Atlantic City that the commission is already responsible for reviewing casino operators’ financial stability and he was confident they would report any concerns.
The commission will review Caesars’ application for a new entity, Caesars Enterprise Services, at a Sept. 26 meeting.
Brown has been critical of Caesars for closing the Showboat casino over Labor Day weekend despite the fact that the casino was turning a profit. He has also criticized the company for selling two former casino properties in the city with deed restrictions saying that they cannot operate as casinos in the future.
He has introduced legislation to prohibit such deed restrictions, saying they subvert the city’s zoning laws.
Brown said he fears that the complexity of Caesars’ structure makes it difficult to determine the health of the company. He said the state’s Casino Control Act would give it the ability hold hearings on the firm.
“For you or for me to spend hours trying to trace the family tree of the various companies doesn’t seem like it’s the way the act is meant to be,” Brown said.
Caesars owners TPG Capital and Apollo Global Management, divided the company into three subsidiaries last year. They include Caesars Entertainment Operating Co., Inc., Caesars Entertainment Resorts Properties, and Caesars Growth Properties.
Caesars is trying to deal with its $25 billion of debt in advance of a wider restructuring. Bloomberg News reported that Caesars Entertainment Corp.’s senior lenders are now in debt negotiations and the company could enter a pre-arranged bankruptcy.
