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Caesars sells St Louis to Penn

Discussion in 'Casino Industry & Development' started by leo21, May 8, 2012.

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  1. leo21

    leo21 VIP Whale

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  2. Amn1410

    Amn1410 Low-Roller

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    This sucks big time. Only a 2 hour drive for me
     
  3. perchcatcher23

    perchcatcher23 Tourist

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    They must be having problems windsor's ceasar laid off 27 people too
     
  4. jpw711

    jpw711 VIP Whale

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    Maybe Penn will loosen up the slots.
     
  5. mjames1229

    mjames1229 VIP Whale

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    And take some 7s off the dice.

    I was only there once (this past February) and I took a Royal Flusher-like beating. I would think that my contribution (done in less than four hours) would have helped them remain profitable. They really do have a nice property.
     
    Super Bowl with my son
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  6. engicedave

    engicedave VIP Whale

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    Amen
    Damn is that place tight
     
  7. dunebug81

    dunebug81 VIP Whale

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    Sad to see this go. The STL property is one of our usual stops when driving to Denver. Good baccarat action and a stellar breakfast buffet. The Italian place is also really good.

    I'm no fan of Penn as every other penn property I've been to has lousy comps and table limits that seem too high. Plus their properties aren't linked so playing at a Hollywood in PA does nothing for you when you play at the Hollywood down the road in WV.
     
  8. theotherone

    theotherone Low-Roller

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    This just sounds awful. Seems to be the total opposite of how casinos *should* be moving.

    But maybe it will mean CET can better focus it's efforts on other casinos iT owns.

    Harrahs Metropolis is my goto property of choice lately; now I fear they could be next on the chopping block.
    I'm staying at Lumiere in STL in Oct -- I was so close to staying at Harrahs. Glad I didn't choose them now...
     
  9. dbueler

    dbueler High-Roller

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    This is a real bummer for me. Harrahs STL is my home casino, my play there combined with LV keeps me diamond. No way will I keep diamond with only LV trips. And I really enjoy the diamond thing!

    I used to play at Ameristar, they are tough with comped rooms. Then realized if I migrated to Harrahs STL, I could easily reach diamond and open up great comps in LV, which it did.

    The room comps have already dried up considerably at Harrahs STL. I will still play there until the sale is final to ensure I get another year of diamond.

    diane
     
  10. leo21

    leo21 VIP Whale

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    Well, from my limited experience with Penn casinos here, I can say that they have good restaurants. I don't know if they have invested anything in their Aurora property lately but because the Joliet Hollywood burned, they had to put some money in it and the renovation they did was amazing. I still can't win in that casino no matter who owns it, though. Their program isn't national and that's the sticking point. They promote M Resort but it looks like they cherry pick players for offers for their other properties. I guess we will have to where the hosts end up and what info sharing happens between Penn and CET. I would be happy to give them a try down there because there a lots of fun things to do in STL. But I am not willing to travel down there if we have to start over from scratch.
     
  11. Funkhouser

    Funkhouser In Charge of the Big Door

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    I think this is the begining of Caesars / Harrahs new business model.
    Given the expansion into Ohio where they operate but do not own the casinos and only have a limited stake. In the Cleveland Horseshoe operations which opens next week they only have a 20% piece of the operation.

    Given the debt load they are under, and analysts stating they only have enough revenue to make the interest payments, they will begin to liquidate properties in Midwest which are non or low profit. They will need to renogiate debt coming due in 2015, and I see them favoring access to new untapped gaming markets which state legislators have recently opened up.

    St. Louis with their original limited gaming, and higher tax basis probally was more hassle then it was worth. Not to mention they had a competing property in KC.

    I think Caesars is eyeing the asian market next, and with most of their available capital tied up in Linq, they need to find new growth markets to jump start cash flow. Even the new TR program is just a polishing of the turd which is reduced comp levels by the big guys.
     
  12. leo21

    leo21 VIP Whale

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    St. Louis was actually one of their better properties in terms of revenue. All the loss limit stuff is gone and it's one of the better Midwestern markets overall. That's part of the reason this is so shocking. The Illinois casinos seemed to be the obvious targets when this "make us an offer" stuff started. Dumping STL is probably a bad long term move but they are desperate to have a big East Coast presence. Maybe they expect airfares to hit a point where it would be unfeasible to travel from the East to Vegas.
     
  13. Funkhouser

    Funkhouser In Charge of the Big Door

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    Actually I read this article by Loveman CEO. Looks like they feel the St. Louis market is too competitive.

    http://www.lvrj.com/business/loveman-says-caesars-in-broad-expansion-151090675.html
     
  14. leo21

    leo21 VIP Whale

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    Well, I will say what no one else will: Loveman is a dummy and it's time the private equity firms who now own CET start waking up to it before he makes a bad situation worse. If they feel they can't compete in STL, so be it but I think that this guy has coasted for far too long. They need someone who has a better background in hospitality and gaming, not academics.
     
  15. SH0CK

    SH0CK Stylin' and Profilin' Quasi Tech Admin

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    CET is a publically traded company.

    http://finance.yahoo.com/q?s=CZR
     
  16. leo21

    leo21 VIP Whale

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    My understanding is that they didn't release a large percentage of shares. The folks who had it before it went public still are really in control. This kinda sums up what's really going on:

    http://dmckee.lvablog.com/?p=8990#more-8990
     
  17. Falcon_Rob

    Falcon_Rob Flying Winnebago

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    So how exactly *SHOULD* casinos be moving? I worked at a CET property the last four years, some as a floor supervisor. There was a Burger King in the food court in my casino. As a supervisor, I could watch a guy lose $500 in 20 minutes on the craps table and STILL NOT BE ABLE TO COMP HIM A WHOPPER!! Not to mention how badly employees were treated and how incredibly cheap the company has become in every facet of its operations.

    I'm not familiar with Penn's overall business strategies. But if you're using CET as a model to what casinos *should* be moving to, you must be experiencing something that's gone completely over my head these past four years.
     
  18. dunebug81

    dunebug81 VIP Whale

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    I think he was referring to the players club not being linked from property to property.

    As for comps at Caesars in my experience it's mostly Vegas that is super cheap on the comps and the in ability of floor people not being able to comp. having been to nearly every other CET property that's almost never the case. I've played $25 a hand bj or $40 a roll craps and asked for food after short 20-30 min sessions and it's almost always given to me. I don't know why Vegas has become so cheap.

    As for being an employee of CET I'm sorry you were not treated well. The people who interact with the customer should be treated and paid well. There is no excuse for that.
     
  19. Falcon_Rob

    Falcon_Rob Flying Winnebago

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    You know, that IS what he was referring to and that fact DID get over my head until you pointed it out. I guess I have to agree in that respect as it could be nice to play locally to build up points for future trips to other properties. However, I'm still in the mindset that only GOOD can come for this property now that its no longer under control of CET. I'm sure the employees will welcome this. As for the players, I'm not familiar enough with Penn to know for sure (but with happier employees, I'd assume that would transfer to happier players as well).
     
  20. leo21

    leo21 VIP Whale

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    You are assuming a lot. There is nothing about my experience with Penn that would suggest that it is really a better play to work or play. I have met people who are loyal to them in the Chicago market but at the same time, I keep bumping into people in their other markets that trash it as a grind joint. I understand you are disappointed with your work experience with CET but that doesn't mean it extends to other employees or to their customers.
     
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