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 ...
Yeah, when two companies compete against each other, they always raise prices and eliminate features to attract customers away from the other guy...
That has been the trend. Comps are much more difficult today than they were 10 years ago.
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.
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.
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.
Wynn is going for it again. There will still be a high-end independent casino on the Strip.
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.
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.
Yep, they wanta be certain they get their fair cut of the action.
Strip is overbuilt anyway, IMO
but they just keep on building...
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.
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.
Don't know who owns the Riviera, but somebody big does. Circus Circus IS the Mandalay Group, who are getting bought out.
Riviera already looking at bankruptcy, Circus Circus was taken over as part of MGM,Mandalay deal.. Sorry.
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.
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