{"id":28054,"date":"2020-09-29T07:59:44","date_gmt":"2020-09-29T15:59:44","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=28054"},"modified":"2020-10-05T10:54:08","modified_gmt":"2020-10-05T18:54:08","slug":"cretins-amok-in-alabama-caesars-2-7b-for-william-hill","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/cretins-amok-in-alabama-caesars-2-7b-for-william-hill\/","title":{"rendered":"Cretins amok in Alabama; Caesars: $2.7B for William Hill"},"content":{"rendered":"\n
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There’s stiff competition for Troglodyte of the Year but Alabama<\/strong> Attorney General Steve Marshall<\/strong> has staked a prohibitive claim. He’s on a crusade to shut down the state’s three private-sector casinos and he won an important victory<\/a> last week. The state Supreme Court ruled that Marshall could prosecute Victoryland<\/strong>, White Hall Entertainment<\/strong> and Southern Star Entertainment<\/strong> as “public nuisances.” This renewed prosecution of a 2017<\/a> case, blocked by the lower courts, exposes Gov. Kay Ivey<\/strong>‘s alleged openness to gambling expansion as the sham we suspected it to be. Marshall is going to proceed forthwith to try and shut down Victoryland and its brethren (again), howling, \u201cFor too long, these individuals, businesses, and even elected officials have flagrantly violated Alabama\u2019s laws.\u201d<\/p>\n\n\n\n\n\n\n\n

Why is the Poarch Band of Creek Indians<\/strong> not included in this jihad? Because a federal court has ruled that they are immune to these public-nuisance suits. However, it may be a moot point. Under the Indian Gaming Regulatory Act<\/strong>, Native American tribes are entitled to whatever form of casino gambling is available elsewhere in their state. If the Class II gaming practiced at Victoryland, White Hall and Southern Star is ruled illegal, the Poarch Band would have little choice but to shutter its operations, although we’re sure they’d litigate like hell.<\/p>\n\n\n\n

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Officially throwing its hat into the William Hill<\/strong> ring, Caesars Entertainment<\/strong> has offered $3.7 billion for the sports-betting giant, a 57% premium<\/a> to the stock price. The Standard<\/em> reports that “advanced discussions” are underway about the purchase offer. Now we wait for Apollo Group<\/strong> to ante up for Hill, as it has already made its interest known. Against that prospect, Caesars’ offer contains a poison pill whereby an Apollo purchase would result in the expulsion of Hill from all Caesars casinos and racinos. CEO Tom Reeg<\/strong> has declared war to the knife. However, a wild card in this game could be Betfred<\/strong>, which has started gobbling up shares<\/a> of William Hill. At the very minimum, it gets a nice profit on its buy-in if the Caesars offer is accepted. Also up for grabs in the bidding war are 1,570 William Hill betting shops in the U.K., at which Betfred has already made an unsuccessful run. <\/p>\n\n\n\n

As for Caesars, how does the debt-encrusted company swing such a big deal? It issued 30 million shares yesterday<\/a>, hoping investors will pony up enough (at $58\/share) to underwrite a Hill acquisition. The offer, if successful, would give CZR 29% of the U.S. sports-betting market, with more jurisdictions expected to come on line soon. \u201cAs more US states legalize, more quickly than we expected, the prize is substantial,\u201d said James Wheatcroft<\/strong>, gaming analyst for Jeffries<\/strong>. Caesars also intends to collateralize $2 billion of the purchase price with with debt pledged against William Hill’s overseas businesses. It further hinted at least a partial spinoff of non-U.S. Hill assets. The attraction, the company said, was \u201cthe ability to access our extensive and preexisting relationships with dozens of sports teams and events, including being the exclusive casino partner of the NFL<\/strong>.\u201d As for U.S. asset sales, they are still pledged against repayment of existing debt\u2014or are they? Caesars was ambiguous. It could raise as much as $2 billion, after a deal is struck, by unloading all overseas Hill assets, opined Roth Capital Partners<\/strong> gaming analyst David Bain<\/strong>. \u201cShould the deal hold, after divestment of non-William Hill USA businesses by Caesars, we believe Caesars will have created roughly $10.4 billion of value, for consideration of roughly $1.7 billion,\u201d he wrote. That’d be pretty sweet.<\/p>\n\n\n\n

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Should Norfolk<\/strong> voters approve a casino this November? Possibly not. While the Pamunkey Tribe<\/strong> isn’t backing off its commitment to a $500 million permanent casino, they’re going cheap and looking to cash in quickly by throwing up a tent in a parking lot<\/a> and calling it a casino. Zoning rules don’t forbid it and it sure would be handy to the Amtrak<\/strong> station. (Good news for Amtrak fan Joe Biden<\/strong>.) The Pamunkey would still need to get conditional permission from the city but the latter seems inclined to play along. The tribe itself has sent mixed signals, telling Commissioner Kathryn Shelton<\/strong> that greenbacks would start flowing \u201cimmediately after November, because they were looking at putting a temporary facility like a tent at Harbor Park<\/strong>.\u201d Then, in a backpedal, tribal representatives said they’d go the sprung-structure route if the city<\/em> asked them to do it. That won’t happen as long as Kenny Anderson<\/strong> is mayor. \u201cWe have not discussed it, but I\u2019m not that warm and fuzzy about some type of temporary facility,\u201d he said. \u201cIf there was a tent or trailer, that doesn\u2019t sit well with me.\u201d<\/p>\n\n\n\n