Caesars Entertainment Corporation
|Traded as||NASDAQ: CZR|
|Founded||October 29, 1937|
|Founder||William F. Harrah|
|Headquarters||Paradise, Nevada, U.S.|
|Revenue||US$ 4.85 billion (2017)|
|US$ 532 million (2017)|
|US$ -382 million (2017)|
|Total assets||US$ 25.51 billion (2017)|
|Total equity||US$ 3.30 billion (2017)|
Number of employees
|Footnotes / references|
Caesars Entertainment Corporation, is an American gaming corporation based in Paradise, Nevada that owns and operates over 50 casinos and hotels, and seven golf courses under several brands. In 2013, it was the fourth-largest gaming company in the world, with annual revenues of $8.6 billion. Caesars is a public company, majority-owned by a group of private equity firms led by Apollo Global Management and TPG Capital.
- 1 History
- 1.1 William F. Harrah era (1937–1978)
- 1.2 Under Holiday Inn
- 1.3 The Promus Companies
- 1.4 Renamed as Harrah's Entertainment, Inc.
- 1.5 Purchase of Caesars Entertainment
- 1.6 Company goes private
- 1.7 The Linq
- 1.8 New Las Vegas Arena
- 1.9 Rename to Caesars Entertainment Corp.
- 1.10 Caesars Acquisition Company merger
- 1.11 Casino unit files for Chapter 11 bankruptcy
- 1.12 Playtika Company acquisition and sale
- 2 Properties
- 3 See also
- 4 References
- 5 Further reading
- 6 External links
William F. Harrah era (1937–1978)
The company's background can be traced to October 29, 1937, when Bill Harrah opened a small bingo parlor in Reno, Nevada, a predecessor to Harrah's Reno. In 1955, he expanded to Stateline, Nevada, on the south shore of Lake Tahoe, where he would eventually open Harrah's Lake Tahoe.
Harrah's Inc. made its initial public offering in 1971. In 1972, it was listed on the American Stock Exchange and in 1973, Harrah's became the first casino company listed on the New York Stock Exchange.
Under Holiday Inn
In February 1980, Holiday Inns acquired Harrah's, Inc. for $300 million. Liquidation of Harrah's collection of almost 7,000 antique automobiles reportedly returned the full purchase price of the company to Holiday Inn. Holiday Inn at the time had interests in two casinos: the under-construction Holiday Inn Marina Casino in Atlantic City, and a 40 percent stake in the Holiday Casino, adjacent to the Holiday Inn hotel on the Las Vegas Strip.
The Promus Companies
The company now known as Caesars Entertainment was formed in 1990 as The Promus Companies. To effect the sale of the Holiday Inn hotel business to Bass PLC, Promus was created as a corporate spin-off, holding Harrah's, Embassy Suites, Homewood Suites, and Hampton Inn; Bass then acquired Holiday Corp., which retained only the Holiday Inn assets. The next year, the company's headquarters moved from Reno to Memphis, Tennessee
The late 1980s and early 1990s saw a rapid increase in gambling markets with the growth of Indian gaming and legalization of riverboat casinos. In 1993 and 1994, the company opened Harrah's Joliet, Harrah's Vicksburg, Harrah's Tunica, Harrah's Black Hawk, Harrah's Central City, Harrah's Shreveport, Harrah's North Kansas City, and Harrah's Ak-Chin.
Renamed as Harrah's Entertainment, Inc.
In 1995, Promus decided to spin off its non-gaming hotel businesses, in part because they had been undervalued by investors due to perception of the company as a risky gaming stock. Promus Hotel Corp. was established, holding Embassy Suites, Hampton Inn, and Homewood Suites, while the parent company, holding 16 casinos, was renamed as Harrah's Entertainment.
Harrah's continued its expansion over the next ten years, opening Harrah's Skagit Valley, Harrah's Sky City, Harrah's St. Louis-Riverport, Harrah's Cherokee, Harrah's Prairie Band, Harrah's New Orleans, and Harrah's Rincon, and acquiring the Southern Belle Casino, Showboat, Inc., the Rio All Suite Hotel and Casino, Players International, Harveys Casino Resorts, Louisiana Downs, Horseshoe Gaming, and the World Series of Poker.
In 1997, Harrah's launched its Total Gold loyalty program (renamed as Total Rewards in 2000), developed at a cost of $20 million. It was the first gaming company to offer a systemwide comps program, allowing points earned at one casino to be redeemed for goods and services at any of the company's other casinos. The system would be credited as a major driver of Harrah's growth over the coming years.
In 1999, the company moved its headquarters from Memphis to Las Vegas.
Purchase of Caesars Entertainment
Harrah's made its largest single expansion in 2005, when it acquired Caesars Entertainment, Inc. for $10.4 billion. Negotiations were spurred on by news of a merger agreement between MGM Mirage and Mandalay Resort Group. The two companies sold several properties ahead of the merger to assuage antitrust concerns, including Harrah's East Chicago and Harrah's Tunica. The acquisition increased Harrah's portfolio to 40 casinos, plus four cruise ship casinos. The deal furthered Harrah's goal of gaining a larger presence on the Las Vegas Strip, where Caesars owned four casinos, and improved its ability to market to high rollers.
Harrah's began to push for a larger international presence in 2005, announcing joint venture agreements to build casinos in Spain, Slovenia, and the Bahamas, and applying for a license to build a major resort in Singapore, though none of these projects would come to fruition. Harrah's also acquired London Clubs International in 2006, and the Macau Orient Golf club in 2007.
From 2005 to 2010, the company consolidated control of a long stretch of the east side of the Las Vegas Strip, acquiring the Bourbon Street, Imperial Palace, Barbary Coast, and Planet Hollywood casinos, along with large tracts of land behind the Strip properties.
Company goes private
Loveman at some point sought advice from private equity tycoon David Bonderman about the possibility of spinning off ownership of Harrah's real estate as a separate real estate investment trust (REIT), hoping to attain the higher price-to-earnings ratios at which hotel companies traded, compared to gaming companies. In 2006, the discussions evolved toward the idea of a leveraged buyout of Harrah's by Bonderman's company, TPG Capital. Another private equity firm, Apollo Global Management, approached Loveman about a buyout, and he encouraged them to collaborate with TPG. By the end of the year, an agreement was announced for the two companies to buy Harrah's for $17.1 billion in cash plus $10.7 billion in assumed debt. The transaction closed in January 2008, leaving Harrah's with $25.1 billion in debt.
It was widely announced in previous years that the company planned to implode properties and build new ones from scratch, but after the market downturn the company conceded that it had little experience in building major resorts. Instead it developed Project LINQ in 2009, which calls for retaining and improving all existing buildings while adding a collection of about 20 restaurants and bars to be built along a winding corridor between the company's Imperial Palace, O'Sheas and Flamingo casinos, on the east side of the Strip. It is an attempt to create the kind of entertainment district that has developed organically in cities such as Los Angeles, Memphis and New Orleans yet is lacking on the Strip, with its enclosed, casino-centric zones. If this new zone is successful it will provide competition for the Fremont Street Experience.
New Las Vegas Arena
The Anschutz Entertainment Group first tried to build an arena in Las Vegas in association with Harrah's Entertainment. In 2007, the joint venture announced they would build a 20,000 seat stadium behind the Bally's and Paris casino-hotels. Caesars Entertainment, Inc. had previously envisioned using the location to build a baseball park, but the company's buyout by Harrah's cancelled the plans. Through the following year, Harrah's got uncertain on continuing with the project, not knowing if AEG would split the costs, and whether building a major league-ready stadium without a guaranteed franchise to play on it would be feasible given the enduring financial crisis. The original plans were to break ground in June 2008 and finish the arena in 2010, but by 2009, it was revealed the stalled project had not even done a traffic study despite being located near a busy intersection. In 2010, the plans were changed to use an area behind the Imperial Palace. However, given the financing would require a special taxation district, opposition from Clark County regarding using public money in the project stalled it even further. AEG eventually backed out completely by 2012, once MGM Resorts International came up with their own project using a terrain behind the New York-New York and Monte Carlo resorts. This attracted AEG primarily for not relying on public funding.
The acquisition of Planet Hollywood provided Harrah's with a contiguous 126-acre (51 ha) property bordering the strip. The vacant lots behind the casinos had been slated for a sports arena large enough to hold a professional basketball or hockey team. The three casinos will have over 8,000 rooms which can be directly connected to the arena.
Rename to Caesars Entertainment Corp.
In November 2010 plans for an IPO were canceled, but a planned name change from Harrah's Entertainment Inc to Caesars Entertainment Corp did go forward as planned and was made official November 23, 2010. This change was intended to capitalize on the international name recognition enjoyed on the Caesars name brand. The Harrah's brand would remain one of the company's three primary casino brands.
On February 8, 2012, an initial public offering took place, with the common stock trading on the NASDAQ under the symbol "CZR."
Caesars Acquisition Company merger
On December 22, 2014, Caesars announced its intention to acquire Caesars Acquisition Company. Under the terms of the transaction, shareholders of Caesars Acquisition Company will receive 0.664 share of Caesars Entertainment common stock for each share of Caesars Acquisition Company held.
Casino unit files for Chapter 11 bankruptcy
The casino operating unit, Caesars Entertainment Operating Company, Inc. and approximately 170 of its subsidiaries filed for Chapter 11 bankruptcy on January 15, 2015.  The casino unit's parent company, Caesars Entertainment Corp., did not file for bankruptcy protection. . The casino operating group's investors initiated litigation against the parent company, Caesars Entertainment Corp.'s over the parent company's debt guarantees.
On November 2, 2015, the Rock Gaming announced it would begin assuming management of Horseshoe Casino Cleveland, Horseshoe Casino Cincinnati, and ThistleDown Racino from Caesars Entertainment, and complete the transition by June 2016.
Playtika Company acquisition and sale
Caesars Entertainment Corporation (via its Harrah's casino brand) acquired Playtika in May 2011 for an amount between $80 and $90 million. Playtika, a social game developer company, was founded in 2010 by Robert Antokol and Uri Shahak and produced Facebook social gaming platforms (slotomania.com & caesarsgames.com). As of June 2016, a Chinese consortium, which includes Alibaba chief Jack Ma's Yunfeng Capital, agreed to purchase it in a buyout for $4.4 billion.
On November 29, 2017, Caesars announced it is selling Harrah's Las Vegas to VICI Properties while Caesars will continue operating it. The same day, they announced that they’re buying Centaur Gaming. In addition, they’re building a new convention center in Las Vegas called "Caesars Forum".
- "US SEC: Form 10-K Caesars Entertainment Corporation". U.S. Securities and Exchange Commission. Retrieved March 27, 2018.
- Schedule 14A: Proxy Statement (Report). Caesars Entertainment. April 14, 2016. p. 76. Retrieved 2017-01-30 – via EDGAR.
- "Casino companies ranked worldwide by revenue". statista. 2013. Retrieved 2015-01-17.
- "Caesars Entertainment's operating unit files for bankruptcy". Reuters. 2015-01-15. Retrieved 2015-01-15.
- "Chapter 11 Petition" (PDF). PacerMonitor. Retrieved 22 October 2015.
- "About Us". Retrieved 2008-01-29.
- "Company History". Archived from the original on 2008-01-25. Retrieved 2008-01-29.
- Seymour Korman (September 12, 1965). "Lake Tahoe: Rich in beauty and gambling". Chicago Tribune. Retrieved 2015-10-22.
- "Investors struck it rich in casino stock". The Times. San Mateo, CA. AP. October 26, 1972. – via Newspapers.com (subscription required)
- Daniel Heneghan (February 8, 1990). "Inn sale completed". The Press of Atlantic City – via NewsBank.
- "Harrah's Entertainment". answers.com. Retrieved 2007-08-13.
- Hermann, Andrew (May 5, 1993). "New gambling boat sets sail out of Joliet". Chicago Sun-Times. via NewsBank. Retrieved 2012-05-20. (subscription required)
- "Dice rolling in Vicksburg as Harrah's opens doors". The Advocate. Baton Rouge, LA. AP. November 21, 1993 – via NewsBank.
- Laurel Campbell (November 30, 1993). "Harrah's opening plays well in Tunica". The Commercial Appeal. Memphis, TN – via NewsBank.
- Janet Day (December 28, 1993). "2 casino operators in 2 towns merge". Denver Post – via NewsBank.
- Marsha Shuler (April 19, 1994). "Shreveport gambling boat opens". The Advocate. Baton Rouge, LA – via NewsBank.
- Fred Faust (September 23, 1994). "Opening night: Casino near Kansas City is ready for action". St. Louis Post-Dispatch – via NewsBank.
- Francie Noyes (December 29, 1994). "Harrah's glitzy Ak-Chin casino wakes sleepy town". Arizona Daily Star. Tucson, AZ – via NewsBank.
- "Promus plans corporate split". The Kansas City Star. Bloomberg. January 31, 1995 – via NewsBank.
- Laurel Campbell (June 20, 1995). "Dual stock trading for Promus begins as breakup looms". The Commercial Appeal. Memphis, TN – via NewsBank.
- James Wallace (December 16, 1995). "Harrah's puts its money on casino in the Skagit". Seattle Post-Intelligencer – via NewsBank.
- "New Zealand has Harrah's casino". The Commercial Appeal. Memphis, TN. February 2, 1996 – via NewsBank.
- Laurel Campbell (March 13, 1997). "Harrah's opens Missouri casino". The Commercial Appeal. Memphis, TN – via NewsBank.
- Bob Williams (November 14, 1997). "Cherokee casino opens". News & Observer. Raleigh, NC – via NewsBank.
- Rick Alm (January 14, 1998). "New casino opens in Kansas Prairie Band, near Topeka, unveiled to waiting gamblers". Kansas City Star – via NewsBank.
- John Pope (October 29, 1999). "Casino shows its hand". The Times-Picayune. New Orleans, LA – via NewsBank.
- Jeff Simpson (August 15, 2002). "Tribal casino has LV style". Las Vegas Review-Journal – via NewsBank.
- Laurel Campbell (December 7, 1995). "Harrah's to reopen Belle with Mardi Gras theme". The Commercial Appeal. Memphis, TN – via NewsBank.
- Joe Weinert (June 2, 1998). "Harrah's completes Showboat purchase". The Press of Atlantic City – via NewsBank.
- David Flaum (January 5, 1999). "Harrah's closes books on Rio deal, gains Vegas resort". The Commercial Appeal. Memphis, TN – via NewsBank.
- Joe Weinert (March 23, 2000). "Done deal: Harrah's gets Players". The Press of Atlantic City – via NewsBank.
- Patrick Strawbridge (August 1, 2001). "Harrah's completes buyout". Omaha World-Herald – via NewsBank.
- "Harrah's Entertainment completes acquisition of Louisiana Downs". New Orleans CityBusiness. December 30, 2002 – via NewsBank.
- Chris Jones (July 1, 2004). "Harrah's purchase clears last hurdle". Las Vegas Review-Journal – via NewsBank.
- Rod Smith (March 12, 2004). "Casino purchase finally finished". Las Vegas Review-Journal – via NewsBank.
- "Casino operator overhauls player club program". Las Vegas Sun. April 4, 2000. Retrieved 2015-11-27.
- Gary Thompson (September 4, 1997). "Harrah's launches customer-loyalty program". Las Vegas Sun. Retrieved 2015-11-27.
- Rick Alm (September 9, 1997). "Harrah's Total Gold card broadens players' options". Kansas City Star – via NewsBank.
- David G. Schwartz (February 9, 2015). "The legacy of Gary Loveman and Caesars Entertainment". Vegas Seven. Retrieved 2015-11-27.
- Laurel Campbell (March 5, 1998). "Harvard prof to mine Harrah's profit". The Commercial Appeal. Memphis, TN – via NewsBank.
- Liz Benston (September 5, 2002). "Satre announces he'll step down as Harrah's chief executive". Las Vegas Sun. Retrieved 2015-12-06.
- "Harrahs Entertainment Inc · 8-K · For 4/21/99 · EX-99.1". Retrieved 2007-08-13.
- Suzette Parmley (June 14, 2005). "The gambling world gets a new top dog". Philadelphia Inquirer. Retrieved 2015-11-26.
- Rod Smith (June 14, 2005). "Documents detail how deal came to be". Las Vegas Review-Journal – via NewsBank.
- Howard Stutz (June 9, 2005). "Merger step closer". Las Vegas Review-Journal – via NewsBank.
- Howard Stutz (June 14, 2005). "Gaming goliath springs to life". Las Vegas Review-Journal – via NewsBank.
- Rod Smith (July 15, 2004). "Caesars accepts buyout offer". Las Vegas Review-Journal – via NewsBank.
- Rod Smith (July 14, 2004). "Harrah"s courts Caesars". Las Vegas Review-Journal – via NewsBank.
- Liz Benston (December 5, 2005). "Harrah's focuses on foreign affairs". Las Vegas Sun. Retrieved 2015-12-06.
- "Harrah's controlling stake in London Clubs International". FinancialWire. November 5, 2006 – via NewsBank.
- "Harrah's invests in Macau, of course". Las Vegas Review-Journal. September 13, 2007. Retrieved 2015-12-06.
- Howard Stutz (July 30, 2005). "Bourbon Street casino closing". Las Vegas Review-Journal – via NewsBank.
- Ed Vogel (December 23, 2005). "Board approves Harrah's to run Imperial Palace". Las Vegas Review-Journal – via NewsBank.
- Ed Vogel (February 8, 2007). "Regulators recommend land swap". Las Vegas Review-Journal – via NewsBank.
- "Boyd Gaming closes Barbary Coast property exchange" (Press release). Boyd Gaming. February 27, 2007. Retrieved 2015-11-27 – via PR Newswire.
- "Harrah's officially takes over Planet Hollywood". Las Vegas Sun. February 19, 2010. Retrieved 2015-11-27.
- Jennifer Shubinski (June 22, 2006). "Harrah's adds more acreage to its plot". Las Vegas Sun. Retrieved 2015-11-27.
- "Landowners stand in way of 'the gorilla'". Las Vegas Sun. December 17, 2006. Retrieved 2015-11-27.
- William D. Cohan (June 5, 2015). "A private equity gamble in Vegas gone wrong". Fortune. Retrieved 2015-12-06.
- Oliver Staley; Brett Cole (December 19, 2006). "Harrah's agrees to Apollo, Texas Pacific buyout offer". Bloomberg. Retrieved 2015-12-06.
- Arnold M. Knightly (January 29, 2008). "Deal closes: Harrah's now private". Las Vegas Review-Journal. Retrieved 2015-12-06.
- "Harrah's plans new 'street' of bars, eateries near Strip".
- "Harrah's to build Vegas arena to draw NBA, NHL". ESPN.com. 22 August 2007.
- Benston, Liz (September 27, 2008). "Harrah's still wants arena, but how much will it pay?". Las Vegas Sun. Retrieved 2010-09-05.
- "Insiders Tight Lipped on Las Vegas Arena". KLAS-TV. January 20, 2009. Retrieved April 7, 2015.
- "Las Vegas foundation drops arena effort - Arena Digest". arenadigest.com. 12 June 2010.
- "MGM & AEG Building a 20,000-Seat Arena on the Las Vegas Strip". Billboard. Associated Press. June 19, 2013. Retrieved April 7, 2015.
- Stutz, Howard (2008-04-10). "Harrah's opts to hail name of Caesars". Las Vegas Review-Journal.
- "Annual Report for the Fiscal Year Ended December 31, 2013". SEC Filings. SEC. Retrieved 17 July 2015.
- Salzberg, Mark (16 January 2016). "Will Lenders Roll Snake Eyes? Seventh Circuit Says Caesars May Be Entitled To Injunction". The National Law Review. Squire Patton Boggs (US) LLP. Retrieved 6 September 2018.
- Reuters. "Caesars casinos files for bankruptcy". Fortune. Retrieved 2015-01-15.
- Morrison, Peter (26 October 2015). "Caesars' Rolls Snake Eyes: District Court Refuses To Enjoin Suit Against Parent". The National Law Review. Retrieved 6 September 2018.
- Farkas, Karen (November 2, 2015). "Rock Gaming takes over management of Horseshoe Cleveland Casino from Caesar's Entertainment". cleveland.com. Retrieved February 26, 2016.
- "Rock Gaming Raises Its Stakes in Ohio and Begins Transition of Operational Responsibilities of Gaming Properties" (PDF) (Press release). Rock Gaming, LLC. November 2, 2015. Retrieved February 25, 2016.
- "Playtika Acquired by Caesars Entertainment Casino Group for $80M to $90M". Adweek. 2011-05-19.
- Culpan, Tim (1 August 2016). "Alibaba's Play Is No Gamble". Bloomberg Gadfly. Retrieved 3 August 2016.
- Editorial, Reuters. "Caesars to sell Harrah's Las Vegas real estate assets for $1.14..." reuters.com.
- Editorial, Reuters. "Caesars Entertainment to buy casino operator Centaur for $1.7 billion". reuters.com.
- VenuesNow. "VenuesNow :: Caesars To Open New Vegas Convention Center". www.venuestoday.com.
|Wikimedia Commons has media related to Caesars Entertainment Corporation.|