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Harrah's to Buy Caesars in $5.2B Deal (Duopoly on the LV Strip)
AP ^ | 7/15/2004 | ADAM GOLDMAN

Posted on 07/15/2004 10:04:04 AM PDT by mkj6080

Harrah's Entertainment Inc. is buying Caesars Entertainment Inc. (CZR) for about $5.2 billion in cash and stock in a deal that would create the largest gambling company in the world.

The deal announced Thursday eclipses last month's high-profile MGM Mirage merger with Mandalay Resort Group (MBG) while setting up a battle for customers on the lucrative Las Vegas Strip.

A source familiar with the deal, speaking on condition of anonymity, said Harrah's and Caesars began negotiating after MGM Mirage completed its deal last month to buy Mandalay for $4.8 billion in cash...

Both deals will face intense scrutiny from federal and state gambling regulators...

(Excerpt) Read more at apnews.myway.com ...


TOPICS: Business/Economy; Culture/Society; Extended News; Front Page News; News/Current Events
KEYWORDS: caesars; casino; gambling; harrahs; lasvegas; mandalay; mgm; strip
The Las Vegas Strip is going to be dominated by only two companies: MGM and Harrah's. I guess hotel rates will go up and comps will go down. If you like going to LV this sucks!!!
1 posted on 07/15/2004 10:04:12 AM PDT by mkj6080
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To: mkj6080

Yeah, when two companies compete against each other, they always raise prices and eliminate features to attract customers away from the other guy...


2 posted on 07/15/2004 10:08:19 AM PDT by flashbunny (Taxes are not levied for the benefit of the taxed.)
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To: mkj6080
The Las Vegas Strip is going to be dominated by only two companies: MGM and Harrah's. I guess hotel rates will go up and comps will go down.

That has been the trend. Comps are much more difficult today than they were 10 years ago.

3 posted on 07/15/2004 10:08:34 AM PDT by Always Right
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To: flashbunny
Yeah, when two companies compete against each other, they always raise prices and eliminate features to attract customers away from the other guy...

Certainly there still is competition, but having 5 big companies instead of 2 mega companies would provide a much more competitive environment. Once #1 is full you are left with #2.

4 posted on 07/15/2004 10:12:00 AM PDT by Always Right
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To: Always Right
Comps are much more difficult today than they were 10 years ago.

Casinos are a different animal today than in years past. In fact, the year Bill Harrah died (1976) was when I saw a major change in casinos. They went from high-class establishments owned by "charasmatic" individuals to nameless, faceless corporate entities.

5 posted on 07/15/2004 10:13:02 AM PDT by randog
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To: mkj6080

I've been there a few times, I've never understood the fascination with the place.

It's like a big mall with liquor and gambling, and the house always wins in the end.


6 posted on 07/15/2004 10:23:11 AM PDT by adam_az (Call your State Republican Party office and VOLUNTEER!!!!)
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To: randog

Wynn is going for it again. There will still be a high-end independent casino on the Strip.


7 posted on 07/15/2004 10:23:51 AM PDT by eno_ (Freedom Lite, it's almost worth defending.)
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To: adam_az

If you play smart at blackjack, you can impress a girl and get comped good drinks (if you choose the venue wisely, e.g. The Hard Rock) and lose little enough that you can leave a big tip and everyone is happy.

If you plan on winning money at the table, well... the ROI ain't so good.


8 posted on 07/15/2004 10:26:19 AM PDT by eno_ (Freedom Lite, it's almost worth defending.)
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To: eno_

I was in LV during the middle of May. You can see the superstructure for Steve Wynn's place L'Reve going up. The hotel has an interesting curvlinear shape. Knowing Steve its going to be an awesome place.


9 posted on 07/15/2004 10:26:57 AM PDT by mkj6080
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To: mkj6080
Both deals will face intense scrutiny from federal and state gambling regulators...

Yep, they wanta be certain they get their fair cut of the action.

10 posted on 07/15/2004 10:37:44 AM PDT by Willie Green (Go Pat Go!!!)
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To: mkj6080

Strip is overbuilt anyway, IMO

but they just keep on building...


11 posted on 07/15/2004 11:04:09 AM PDT by Shermy
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To: mkj6080

The rich end by the airport, that is.

But there is still plenty of takeover space with the older casinos at the other end. Riviera, Circus Circus, etc.


12 posted on 07/15/2004 12:08:02 PM PDT by Sam the Sham
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To: adam_az
It's like a big mall with liquor and gambling, and the house always wins in the end.

Most of the time, but not always. For proof, read Bringing Down the House: The Inside Story of Six M.I.T. Students Who Took Vegas for Millions.

Also, there are games like varieties of poker where you're not playing against the house, but against other people. And if you know what you're doing, you can make a lot of money.

13 posted on 07/15/2004 1:47:33 PM PDT by jpl ("America's greatest chapter is still to be written, for the best is yet to come." - Ronald W. Reagan)
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To: Sam the Sham

Don't know who owns the Riviera, but somebody big does. Circus Circus IS the Mandalay Group, who are getting bought out.


14 posted on 07/15/2004 3:17:24 PM PDT by Citizen of the Savage Nation
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To: Sam the Sham

Riviera already looking at bankruptcy, Circus Circus was taken over as part of MGM,Mandalay deal.. Sorry.


15 posted on 07/15/2004 3:39:34 PM PDT by BooBoo1000
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To: BooBoo1000

I didn't know.

But then again, all Riviera has is topless shows. As if California has any lack of topless bars. As if seeing boobs is any novelty nowadays.


16 posted on 07/16/2004 9:02:20 AM PDT by Sam the Sham
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