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CET Announces $1.756 Billion Fourth Quarter Loss

Discussion in 'Casino Industry & Development' started by Viva Las Vegas, Mar 11, 2014.

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  1. Viva Las Vegas

    Viva Las Vegas Ramblin' Gamblin' Man

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    Link

    “The process to address Caesars condition is well underway, but will take quite some time to achieve,” - Gary Loveman

    [YOUTUBE]S_K7QU7u_VY[/YOUTUBE]
     
  2. lithium78

    lithium78 High-Roller

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    They are losing their shirt in AC, because the gambling market has collapsed there due to casinos in all the surrounding states. AC never expanded their entertainment options like LV and they are paying the price for it. CET has also failed to get into the Asian gaming markets where MGM, etc. are making the big money right now.
     
  3. Funkhouser

    Funkhouser In Charge of the Big Door

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    Classic! Who thought the Talking Heads could prophesize what path CET would be on long before there existence!

    Maybe David Byrne should be running the company.
     
  4. NickyDim

    NickyDim VIP Whale

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    This is what's going to save Caesars in AC. Once there is approval for other states to have online gaming agreements with Las Vegas and New Jersey(like Delaware just signed with LV), their revenue will go through the roof and that's what their betting on. 52% increase in one year from just 2 states in their initial year, is just the tip of the iceberg.
     
  5. Viva Las Vegas

    Viva Las Vegas Ramblin' Gamblin' Man

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    David is far more intellegent and capable. I'd hate to be a bondholder, not sure if they'll recover a few cents on the dollar after Gary shifts the remaining assets in various entities and pulls the plug on the bond/bag holders. Stations Casinos did the same.

    It's hard to lose money on a casino unless your profits are earmarked to repay interest and debt. The problem is senior management (MILFe/CET, many other major corporations) skims their take off the top (compensation including stock options) without contributing a penny in capital. The result is a Strip duopoly running on fumes and held together with duck tape and chicken wire. Sorry, but EBITDA is meaningless in a world where Interest, Taxes, Depeciation and Amortization are real costs.
     
  6. Someone

    Someone High-Roller

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    the vast majority of states have real live gaming so there is nothing to show that those that want to gamble don't have that opportunity unless they are such an anti-social loser that they prefer to gamble at home on the computer so they can be away from the live action and drinks and food

    I mean who wouldn't want to play computer craps at home in their underwear eating cold hotdogs and drinking piss beer VS being at a casino and at least possibly getting a drink for your calculated losses and actually having social interaction

    and they took in 316 million in a YEAR when they are losing SIX TIMES that in a QUARTER so I don't think online gaming is a savior and even worse if everyone sits at home and gambles online who is going to pay $500 a night to stay at the cromgavorstraminerwell and $5,000 for a table at Drai's and $100 for a steak at wherever and $200 a night at the new Q

    or are we suppose to believe that people are sitting on unlimited gambling capital that they only don't gamble with because they can't get to the actual casinos often enough and they can't carry their hefty bag of gambling cash with them when they do come so they will use the remaining resources online until they can get back to AC or Vegas......or that anyone that is so addicted to gambling like that is not already dead broke and tapped out

    I mean the fact that AC takes a major hit every time some neighboring state starts up even a few casinos shows that gambling total dollars in the USA are pretty much TAPPED OUT and now casino companies are just shifting around the same dollars to new properties in different areas at the expense of old properties

    and poker and the WSOP is played like there is no tomorrow poker rooms even in Vegas are shutting down left and right and the idea of being the next "playa" at the table has faded to some other ridiculous fantasy and the only thing worse than that is sitting at home eating a cold bologna sandwich and drinking piss beer while being the next "playa" in front of a computer where no one can even see your poker face behind your Oakley Blades and your hoodie while you jam to your Walkman and do your little distracting chip stack tricks

    gambling is a well past mature industry and gambling resources for the America economy are tapped out no matter if it is live or online sports or table games or slots or poker

    and again even if people do play from home that leaves CET with billions in properties that are half filled and over staffed with unionized work forces that will be difficult to trim over the short haul and even if CET does manage to draw the club kid crowd (where they are WAY BEHIND already) to Vegas that still leaves their horrible properties in dozens of other states that will not be attracting that crowd.......unless of course they can get their hands on Revel and work their CET magic on it :thumbsup::rolleyes2::evillaugh:nworthy::faint::wave: because yea everyone in the "in crowd" is hating Revel because of the ownership not because AC is a tired played out shithole that no one goes to for anything besides gambling and to GTFO after they gamble......but then an operator like CET has never been running a casino like Revel geared towards the "in crowd".......they have just been busy running the properties they do have into AC into the ground :eek:
     
  7. lithium78

    lithium78 High-Roller

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    They haven't even really tapped into the potential for online gambling in NJ yet, because the websites were hurried out, so a lot of people are waiting until they get the kinks worked out. CET finally managed to link the online gaming to Total Rewards, so I'm planning to play more on the websites now that I'm getting my tier credits and reward credits. It may actually help the casinos that people can more easily earn comps from home that they can use in AC. CET has been sending me tons of offers for free hotel stays and show tickets for my online play.
     
  8. HoyaHeel

    HoyaHeel Grammar Police & Admin

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    I have MUCH better beer at home than I can get comped in a casino in Vegas:peace:

    There's really no need to be so demeaning of those who might enjoy online gaming. Let's keep it polite, please:thumbsup:
     
  9. Kickin

    Kickin Flea

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    "And in completely unrelated news TPG, Apollo, Blackstone, and myself made $1.756 billion this quarter" - Gary Loveman (edited out of the official release)
     
  10. Tellafriend

    Tellafriend High-Roller

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    Very, very well said!
     
  11. GrtWitHntr

    GrtWitHntr Low-Roller

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    That's hilarious:nworthy: Tell us how you really feel:thumbsup:
     
  12. Viva Las Vegas

    Viva Las Vegas Ramblin' Gamblin' Man

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    Norman Chad says, pay the man, Shirley.
     
  13. Someone

    Someone High-Roller

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    just to be clear (and it probably wasn't) I am not demeaning of those that might like to gamble online (though I personally can't see that as being remotely interesting just like I personally find it highly uninteresting to gamble in the back room of some random truck stop or gas station, but people do it)

    I was being demeaning of those that would actually make the argument that they can't possibly find a way to spend their current gambling budget unless legalized online gambling comes into reality

    because the reality is it is very very very easy to get around the illegalities of online gambling now and if you are concerned with the whole sending of money by wire or waiting a few days to get your money because you "need your bank roll now" you probably actually do not have a bank roll you have this months rent that you are gambling in hopes that you can make a little more so you can have fun and pay the rent.......when you gamble the odds are CLEARLY against you so the idea that one that should be gambling somehow can't wait the few days or even a week or two weeks to collect their money back from Bovada when they do their distributions is laughable.......because you should only gamble with money you can afford to lose so if you win, lose a little or break even you should not be in a position to worry about waiting for Bovada to send you your money because the reality is if you were to lose it then there is no waiting for that money you "need" because you lost the money you need gambling

    and really if you can't afford one of the flights to Vegas and a room at The El Cortez and eating from one of the hundreds of dollar menus in Vegas then you probably can't afford to gamble

    and if you work so much that all you have time for is to gamble online well again Bovada is said to be highly reputable, the waiting on money is a non-issue and I guess to a very very few sitting at home after a hard weeks or two weeks of work in front of a computer gambling would be stress relief I think that number is extremely limited and even more so the number that can actually afford to do so it pretty miniscule

    so to anyone that can afford to gamble, has not found Bovada yet, works too hard and too many hours to find the time to get to one of the hundreds of casinos that litter the USA from coast to coast and or when you are there you can't expend all of your gambling resources I am sorry if my prior post was offensive to you.....to the rest......you might have a problem with gambling and online gambling is probably going to be a bigger issue for you especially if the only thing holding you back now is the fact that your bank roll is held up for a few days or weeks because of the way Bovada and others have to operate to skirt the law

    gambling is great fun especially if done responsibly and in the context of "this is how I spend my budgeted entertainment money'

    when it gets to the idea that there is a large pool of money in the USA that is untapped just waiting for people that can't somehow get to any of the multiple casinos across the land or use Bovada (that a highly credible industry expert has given his approval to in terms of odds, algorithms and credibility) then I have concerns that there is either a way blown out of proportion expectation of what those dollar amounts are or there area lot of people that will be wasting money gambling online that they can't afford to lose

    and in the context of this thread neither one of those things is in any way shape or form healthy for CET or any other major casino company or for gambling in general or Las Vegas or the US economy
     
  14. jackincols

    jackincols Guest

    :evillaugh Yeah, about the only difference in the "mob days" verses now is the mob sent couriers to Vegas to go to the count room and physically take the cash out. Now, it's done electronically.
     
  15. grosx2

    grosx2 VIP Whale

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    Love it....you know it's on when each entire paragraph is also its own giant run-on sentence....that's a good old-fashioned, straight up fuckin RANT right there.....preach! :nworthy::peace:
     
  16. jr7110

    jr7110 VIP Whale

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    I have zero interest in online gaming - I visit both Las Vegas and Atlantic City several times a year, and a majority of the fun is in the destination. I enjoy staying in a nice hotel, eating nice meals and (in Vegas) checking out interesting off-strip locations.

    Gambling is a part of my trips, but not the only focus. I can't imagine that sitting in front of a computer screen would be a good substitute for the energy and excitement that comes from the possibilities (real or imagined) that you feel are waiting for you in the next pull of the slot handle or roll of the dice in an actual casino.
     
  17. lithium78

    lithium78 High-Roller

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    Well, as I mentioned, I can't always get away from work to go down to AC (although I try as often as I can.) So, online gambling provides me with a way to scratch the itch. Plus, a friend gave me a whole bunch of microbrews, so I can have a free drink in my hand as I play. If I ask my wife to bring the beer to me from the fridge, it's like I have a cocktail waitress waiting on me too. :beer:
     
  18. PPtraderal

    PPtraderal Low-Roller

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    Cet acqusition

    WHat makes no sense to me is this. The Atlantic Club Casino, in AC , went under. Tropicana bought the machines and client base for something like 8 million. Caesar's bought the hotel. Now the building is sitting idle. No activity. I can't imagine why Caesar's would have an interest in this property. It is the southern most boardwalk casino. They have Caesar's, Bally's, WIld Wild West which is like a Ghost town, Showboat and Harrah's. They also closed all the race books on January 1, 2014. Bally's and wild Wild west do not have buffets. WHy buy a building and let it sit idle ?
     
  19. Someone

    Someone High-Roller

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    the simple answer is because it is a really poorly run company operated by idiots

    the longer story is who cares when you are doing stupid things with others money and getting paid a lot to do so

    and if you are scratching your head about why it sits closed this will make you say WTF :eek::rolleyes2::poke::thumbsup:

    http://www.nj.com/atlantic/index.ssf/2014/02/whelan_caesars_meddling_in_atlantic_club_future.html

    nothing like buying dead assets and then trying to make sure they will never be able to be used for the only thing that they would be remotely useful for before you try and dump them on some other bigger chump.......as if there is a bigger chump in the casino industry or in AC than CET
     
  20. engicedave

    engicedave VIP Whale

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    Why not buy a property at a fire sale price, and then close it to consolidate your players and income?
    By opening the property, you have the remodeling costs, staffing costs, general overhead and upkeep.
    By keeping it closed, you eliminate competition by having one less casino on the boardwalk in order to consolidate down your players to overhead costs.

    Don't you think companies have bought out competitors or new products, only to shelve them so they don't dilute the market and reduce sales of your primary product? Pharma industry does this all the time.

    So the property sits there, so what? You bought it in a fire sale when the economy and the real estate market was in the dumper, so you sit on it and wait for some other brain surgeon to cough up present day or future property valuation at a profit as well as a premium, since they'll become your competitor.

    It's an asset you can dump at fair market value at any time and likely comes with a NJ gaming permit/license

    Money in the bank, while consolidating your consumer base to a lower overhead cost.
     
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