The restructuring will result in the business being split into two separate entities – one that will be set up as a real estate trust and the other as an operating company. The real estate business will then lease operations of Caesars and Bally’s to the operating company. As such, the real estate business will not need to have a full casino licence, but will instead be able to apply for a Casino Service Industry Licence.
Caesars is one of the biggest names in the gambling industry, and was once part of the Hilton Hotels chain. The corporate history of the organisation is more complicated than many would imagine, and Caesars is actually a number of different businesses, so when Caesars Entertainment filed for bankruptcy in 2015, it was a move that made headlines worldwide. Whilst some speculated that the brand might disappear entirely, and take the likes of Caesars Atlantic City and Bally’s with it, the restructuring plan will help to ensure that doesn’t happen, and effectively serves as an exercise in damage limitation.
There is still some way to go before the proposed plan can be implemented, but receiving approval for it was an essential first step, so it is good news that the Casino Control Commission opted to provide it. Corporate lawyers retained by Caesars will now be focused on obtaining the other approvals that are required.