|
|
|
 |
Penn National Gaming Still Searching for Las Vegas Casino
LAS VEGAS, NEVADA --
Since the onset of the recession, Penn National Gaming has found itself in a better cash position than almost any other gambling operator, and one of its goals has been to exploit that advantage to acquire a presence on the Las Vegas Strip. After failing to strike a deal with MGM Mirage concerning any of its Strip casinos, Penn National is now considering buying the unfinished Fontainebleau Casino.
The Fontainebleau is in bankruptcy, and still is only two-thirds toward completion. Estimates are that a purchaser would have to spend another $1.5 billion to open the casino resort, with $3 billion invested before the bankruptcy.
Complicating the potential sale is the opening of almost 10,000 more Strip hotel rooms, not to mention thousands of square feet of gaming floors, to the already-suffering Las Vegas market when CityCenter and the Cosmopolitan Casino begin operations in the next few months.
Reports have also stated that Apollo Management is considering a bid for the Fontainebleau. Apollo is one of two private equity firms controlling Harrah's Entertainment.
If completed, the Fontainebleau will contain 3800 hotel rooms, along with substantial retail and restaurant space accompanying its casino.
Penn had been in talks with MGM Mirage when that company's outstanding debt seemed likely to force some equity sales, but MGM preferred to offer its Detroit or Mississippi properties and retain its Las Vegas casinos. An agreement to refinance its debt with lenders has allowed MGM to withdraw its casinos from the sales market.
Previous USA Casino News Articles
Post A Comment
|
 |
|
|
|
