Steve Wynn‘s $19 million libel award against sleazebag Joe Francis, former purveyor of Girls Gone Wild, has been upheld. The appeals court also imposed a gag order on Francis, enjoining him from ever repeating his claims that Wynn threatened to have him killed. Or, more explicitly, Wynn allegedly said he’d have Francis hit over the head with a shovel and buried in the desert (thereby improving civilization in the process) unless he paid his gambling debts. Francis not only made the assertion under oath but on Good Morning America and to TMZ, creating the potential for much damage to Wynn’s reputation.
Or maybe not. Francis is so disreputable that it would probably create sympathy for Wynn if these claims got around. “We fully expect this to be overturned by the California Supreme Court expeditiously,” declared Francis pompously. That’s pretty big talk coming from a two-time loser.
Not so fast! Bondholders of Caesars Entertainment are asking the State of Illinois to intervene in a loan whose terms deprive them of guarantees on their debt. Both first- and second-lien bondholders are trying 
to get their grievances on the docket of the June 26 Illinois Gaming Board meeting. “The bondholders are turning to Illinois after failing to get help from other states in unwinding casino sales that they say diminished the value of their bonds, according to the people, who asked not to be named because the dispute may end up in court,” reports Bloomberg. They evidently fear that the removal of the guarantees is a setup for a default or bankruptcy.
“We believe there’s no legitimate basis to challenge the steps we have taken to improve the long-term financial health of Caesars,” says company spokesman Steve Cohen. And, so far, regulators have turned a deaf ear to the dissident shareholders’ plaints.
Caesars is also accused of lowballing the value of assets it transferred from Caesars Entertainment Operating Co. to Caesars Growth Partners. Bank representative William Hardie testified in Louisiana, “Whether this board likes it or not, it is likely to get dragged back into this big mess.” Meanwhile, Caesars’ 10% bonds have fallen to an all-time low price.
Low price for High Roller. People don’t want to ride the Vegas High Roller while the sun is out, evidently. Caesars has cut prices for daytime rides to $20 and also has an attractively priced, $50 family pack for four. Hail, Caesars.
Going, going … Having never taken the Las Vegas Hotel into the ACEP fold, Goldman Sachs is going to sell it to Westgate Resorts for a fire-sale $150 million. Goldman has been in search of an exit strategy for some 
time now and the ongoing talks with Westgate would provide one. But Westgate … it flopped miserably with Westgate Planet Hollywood (now Hilton Elara) in a prime location. Now it’s going to take on this white elephant and, instead of capitalizing on its proximity to the Las Vegas Convention Center, turn it into condos. (Said an LVA staffer, “And the casino? What are they going to do with that? A bowling alley?) Speaking of conversion, I’ve read from a credible source that the LVH has serious deferred-maintenance issues. That would certainly explain the bargain price.
