MGM “Vegas leader already”
As Caesars Entertainment Corp. teeters on the edge of bankruptcy, its competition in Las Vegas?including Wynn Resorts, MGM Resorts and Las Vegas Sands?are hoping to absorb its customers.
Caesars derives about half of its revenues from its Las Vegas operations, particularly Caesars Palace on the Vegas Strip, the Motley Fool reported. If Caesars folds, MGM could be the biggest beneficiary. “MGM Resorts is the Vegas leader already, and no company seems as well-positioned to gain by Caesars’ potential demise,” the website reported.
In October, the Las Vegas Review-Journal reported that Caesars “has a bigger debt load than what Detroit owes its creditors.” It carries $23.5 billion in long-term debt, most of which was accrued when the company was taken private in a $30.1 billion buyout by Apollo Global Management and TPG Capital in 2008.
Caesars has not been able to generate sufficient nongaming revenue to make up for losses in gaming revenue, according to the Fool.
