Caesars Entertainment changing corporate structure to raise new equity

By Cy Ryan

Wednesday, July 10, 2013 | 3:30 p.m.

The Nevada Gaming Control Board on Wednesday approved a juggling of the corporate structure of Caesars Entertainment to permit it to raise up to $1.5 billion to pursue future development.

The change will give the company, which has more than 30 casinos in the United States and three foreign countries — including eight in Las Vegas — “access to the financial market,” said Michael Cohen, senior vice president of Caesars.

Cohen said the same owners still will be in charge and the management will not change.

Caesars is currently seeking approval from Maryland to hold 58 percent of the Horseshoe casino in Baltimore.

Cohen told the board at its meeting in Las Vegas that he hopes to have approval from the Securities and Exchange Commission by next month for the corporate changes, which will allow Caesars to “raise new equity without the stockholders being damaged.”

He called this a temporary plan that calls for moving around subsidiaries.

The application goes before the state Gaming Commission at its July 25 meeting in Las Vegas for final approval.

The board also gave approval to:

• Penn National Gaming, which is licensed at the M Resort and Spa in Henderson, to transfer its real estate holdings into a separate company to attract more financing. The company has interests in 21 casinos and seven race tracks. A company spokesman said the reorganization will not result in change of management or employees at the Henderson casino.

• Station Casinos for a license for 35 slot machines at its newly acquired Wildfire club in Las Vegas and a restricted license for 15 slots at the Wildfire in Henderson. Also approved were Thomas Friel and Marc Falcone to be senior vice presidents at the locations.

• Bluff Holding Company, which accepts online race betting wagers from 40 states, to be licensed as a marketing service provider to casinos in the online poker business.

• Check Holding of Pennsylvania to be licensed as a payment processing service to Nevada casinos.

• The following persons were approved for licensing as executives: Richard Faircloth, vice president at the Tropicana; Michael Shaunnessy, president/CEO at Nevada Gold and Casinos; Ashley Hemmers, director at the Avi Hotel & Casino in Laughlin; Matthew Flandermeyer, secretary/treasurer in Sartini Gaming; and Ronald Eidell, chief financial officer at Nevada Properties.

• Fertitta Entertainment in Las Vegas to create a profit sharing plan for 14 of its employees in management.