The future of Caesars; Larry Ellison buys Cal-Neva

Executives from Caesars Entertainment flew to New York to meet with Wall Street analysts and lay out their vision of the company’s post-bankruptcy future. According to Deutsche Bank‘s Carlo Santarelli, internal research “displays a healthy Millenial participation rate, a long time knock on the secular industry outlook.” Management “spoke optimistically” about the prosperity of acquisitions — in case you thought Caesars couldn’t get any bigger — seeing “a sudden influx of opportunities.” Bad news for players, though: Caesars is going to save its pennies by sweating comps and other promotions, validating its image as the company where the customer almost matters.

On the acquisition front, prices remain inflated at this point, dampening ROI prospects, but “there remains considerable optimism that deals will be consummated.” Now that Strip room renovations are largely behind it, Caesars will be shifting the bulk of its capex
maintenance into updating its slot floors. “Management spent considerable time today addressing slot technology and expressing their pleasure with the advances in slot product of late, going as far as to call it ‘game changing’.”

As for the aftermath of the Mandalay Bay massacre, Caesars experienced two weeks on soft business on the Las Vegas Strip, followed by steady improvement. “Further, it was noted that the meeting business remains solid with no meaningful cancellations through year end.” I guess you’d call that #VegasStrong, huh?

* Speaking of Caesars Entertainment, it got the second-best score (59%) in a study of workplace equality conducted by Women of Diversity Productions. (First place went to Aristocrat Technologies, which merited a 62% score.) The results illustrate both how far the male-centric industry has come — and how far it has yet to do. Station Casinos (52%) put rival Boyd Gaming (39%) to shame, while MGM Resorts International needs to work on that diversity thing, scoring six points behind Caesars. Big, ripe S&G raspberries to the dinosaur mentalities at Scientific Games (34%), Golden Entertainment (27%) and last-place finisher Nevada Gold (25%).

Summarizing the findings, the Las Vegas Review-Journal reported, “Not one of the 21 corporations [surveyed] had a female CEO, chairwoman or president. At only three corporations did women hold one-third or more executive board seats.” Also, the participating companies clammed up when it came to disclosing compensation. (Embarrassment perhaps?) Said Women of Diversity’s Denise Duarte, “ultimately one of the most challenging aspects of this was the lack of transparency all around. If it’s not mandatory, certain corporations will not comply.” That’s one of the things that needs to change, maybe with some not-so-gentle prodding by the Nevada Gaming Commission. C’mon, Jan Jones Blackhurst can’t do it alone!

* The long-suffering Cal-Neva Lodge could finally make its way out of casino Purgatory if reports coming out of California are true. The Sacramento Bee sussed out bankruptcy-court documents pointing to a $38.5 million sale by an investment firm run by Oracle Corp. founder Larry Ellison. A bankruptcy court judge gaveled the sale on Oct. 16, no competing bids having emerged. Unlike the Cal-Neva’s last owners, Ellison won’t lack for cash. Dubbed “one of the nation’s most voracious consumers of trophy real estate” by the Wall Street Journal, Ellison reportedly bought an entire Hawaiian island for a cool $500 million back in 2012. Thirty-six million smackers is just walking-around money for this guy.

Ellison had one mansion in the Lake Tahoe, recently sold, and is building another. His intentions for the casino that ex-owner Criswell-Radovan could never completely renovate are a mystery, even to locals. Casino operator Strategic Gaming Management has been given the boot. SGM exec Eric Dale said of Ellison’s peeps, “They’ve been radio silent.” The Cal-Neva has fallen a long ways from the era when Judy Garland would be pulled from the audience for an impromptu set with Frank Sinatra and Dean Martin (I used to have it on MP3). As the Incline Village Crystal Bay Visitors Bureau‘s Andy Chapman says, “It’s an important property for the north shore.”