There should be nothing untoward about staying at a Caesars Entertainment property these days, bankrupt or not. The bulk of the damage, in the form of layoffs, was done under newly retired CEO Gary Loveman’s tenure. At the time of the bankruptcy, Total Rewards points allocations were actually increased and the company is evidently feeling sufficiently flush to have closed a casino, the Showboat in Atlantic City, that was operating at a profit.
Caesars consists of several units, of which only one, Caesars Entertainment Operating Co., is bankrupt. However, a large number of casinos have been herded into CEOC, including Caesars Palace itself, the flagship of the company. (Our recent visits to the Palace have evinced no cause for concern.) Others in Chapter 11 are Caesars Atlantic City, Bally’s Atlantic City, Harrah’s Reno, Harrah’s Tahoe, Harrah’s Joliet, Harrah’s Gulf Coast, Harrah’s Council Bluffs, Harrah’s North Kansas City, Horseshoe Southern Indiana, Horseshoe Council Bluffs, Horseshoe Hammond, Horseshoe Bossier City, Harrah's Tunica (closed and partially demolished), Horseshoe Tunica, Louisiana Downs, and Harvey’s Lake Tahoe.
There have been rumors that Bally’s Atlantic City will be next on the chopping block if it can’t improve operating profits and it recently repositioned itself as a low-roller joint, just in time for summer and presumably in an attempt to scoop customers orphaned by the closings of the Showboat, Trump Plaza, and the Atlantic Club. CEOC also manages Harrah’s Ak-Chin, Harrah’s Southern California, and Harrah’s Cherokee, all of which are tribally owned, and Caesars Windsor, which is the property of the Ontario Lottery.
It also has management contracts with Horseshoe Cleveland, ThistleDown Racino, and Horseshoe Cincinnati, and there you might find some cause for concern, as the Caesars-managed Ohio properties have shown revenue stagnation of late, with customers defecting from Horseshoe Cleveland and ThistleDown to Hard Rock Rocksino, which recently deposed Horseshoe Cleveland as the top-grossing casino in Ohio.
Other units of Caesars (none of which are in bankruptcy) are Caesars Growth Partners, which owns Caesars Interactive, the company’s online division, as well as the World Series of Poker, Bally’s Las Vegas, The Cromwell, Planet Hollywood, Harrah’s New Orleans, The LINQ Hotel, and (a share of) Horseshoe Baltimore. Then there’s Caesars Entertainment Resort Properties. Under this umbrella you will find Harrah’s Atlantic City, Harrah’s Las Vegas, Harrah’s Laughlin, Flamingo Las Vegas, Paris Las Vegas, the Rio, and The LINQ Promenade, as well as the High Roller observation wheel.
As for the Fortune magazine article you mentioned, we'll be back tomorrow with our our take on their take of recent events at CET and how they came to pass. Stay tuned until then!
