Creditors claim Caesars Atlantic City could be tossed into bankruptcy if Caesars can transfer their loyalty program.
Caesars Entertainment is investing much of the year that is last a variety of moves built to reorganize debt and separate the parts for the company that are working from those that are taking a loss.
The company has found ways to keep its high performing or promising assets away from the massive debts plaguing the parent company though entities like Caesars Growth Partners.
That’s evidently what Caesars planned to do with their benefits program, called Caesars Enterprise Services.
But now, hedge fund mogul David Tepper is among a team of bondholders that are searching to stop that transfer in an effort to keep the valuable program as an element of the main company.
Currently, four of the 12 casinos that had been in operation in the beginning of 2014 have either turn off or want to do so before the end regarding the summer.
Regulators Consider Transfer
The battle comes after the private-equity organizations that own Caesars starting asking for approval from state gaming commissions to transfer the benefits entity. On Thursday, it was anticipated that the New Jersey Casino Control Commission would take a vote on the move, but that was delayed until the following month. The state’s Division of Gaming Enforcement said that they are investigating the request, and haven’t yet determined whether or not they’ll recommend the continuing state approve the transfer.
But Tepper as well as other major debt holders have now argued against that move. They state that separating the rewards program from the moms and dad company might be a precursor to putting two more Caesars properties in Atlantic City (Bally’s Atlantic City and Caesars Atlantic City) into bankruptcy.
That is not the next that New Jersey officials want to see. Already, four of this 12 casinos which were in operation at the begin of 2014 have either shut down or intend to do so before the end for the summer.
While that may ensure it is easier for the casinos that are remaining grab a larger slice of Atlantic City’s shrinking gambling pie, two more casinos on the verge of closing would consume even further into the city’s tax base and complicate any attempts to transition to a post-casino economy.
Bondholders Fight Business Restructuring
Many bondholders were fighting the attempts to restructure Caesars every step of the way. According to Tepper and others, the organizations that now own the company, including Apollo Global, are simply just making use of organizational maneuvers to protect their strongest assets from creditors while allowing the primary branch of Caesars to fall apart. By splitting the company this way, the owners might be able to put Caesars into bankruptcy while still going forward with their finest assets through Caesars Growth Partners (CGP).
But if those plans are actually in the ongoing works, they are often thrown for a cycle if the loyalty program isn’t permitted to be transferred over to CGP. That entity allows Caesars to monitor its players and includes their extensive customer list, valuable assets being critical towards the successful operation of any form that is future usually takes.
Which means that then have significant leverage in the bankruptcy proceedings if Caesars proper still held on to the loyalty program if the owners want to run the company through CGP, bondholders would. For example, they could threaten to partner with another casino operator and allow that rival then to make use of the consumer list.
Pirates Pitcher Jeff Locke Game Fixing Hoax Wrangle
Jeff Locke was the goal of a childhood friend’s false game-fixing claims. (Image: Justin K. Aller/Getty Pictures North America)
Jeff Locke is supposed to be investing his worrying about how his pitching can help the Pittsburgh Pirates make a run to the National League playoffs august.
Instead, a whole tale about a hoax involving a childhood friend has thrown him into the middle of the controversy over fixed games, even as Major League Baseball has already confirmed that he has done nothing wrong.
An account that showed up in the August 18 issue of Sports Illustrated, produced by The Center for Investigative Reporting, tells the story of a hoax that is unusual by a guy named Kris Barr, a sports handicapper who was simply friends with Pirates starting pitcher Jeff Locke as a youngster.
Both men expanded up in Conway, brand New Hampshire, playing youth baseball together until Barr’s family moved away as he had been in sixth grade.
Locke would go in to become perhaps the most useful high school pitcher within the state, get drafted by the Atlanta Braves, and eventually reach the major leagues.
Meanwhile, Barr discovered himself in the company of sports handicapping, now offers tips to gamblers on his web site, VIPSportsInvestment.com.
Social networking Snub Leads to Resentment
It’ll be nice when all of this passes and everyone realizes it was just a big stink.
In accordance with Barr, he and his brother attempted to reconnect with Locke after he was traded to the Pirates during his minor league days, but Locke showed little interest in reconnecting. That small led to Barr holding a grudge. That included rooting against his former friend at every opportunity, and eventually telling his consumers to bet against him in virtually every one of their starts.
But something uncommon happened: Barr’s picks were startlingly accurate when Locke pitched. He’d select Locke to lose and offer up several runs, and his former friend did just that. The team that originally drafted him at the end of the season, he picked Locke to get his first career win against the Braves. Sure enough, Locke won a decision that is 2-1.
That led to Barr telling exactly what he now states were innocent jokes about how he had been working with Locke to fix his starts. At first, his tales got laughs, but as the predictions mounted, people started questions that are asking.
Tale is Potential Distraction in Playoff Race
The SI story goes into the tale that is harrowing of investigation into Barr, how Locke first heard bout the claims, and how investigators eventually cleared Locke and Barr of any actual game-fixing allegations. But the release of the article brought the story to Locke’s attention yet again, this time in the center of a heated pennant race.
Locke attributes Barr’s actions to town that is small, and says he can’t wait until the story blows over.
‘It went away…and, given that it is all public, it’s back,’ Locke stated. ‘And this is lightning link slot machine the part that is frustrating. I have work doing in 2 or three days, we now have employment to complete tonight, we do not want to distract such a thing away. It’ll be good when all of this passes and everybody realizes that it absolutely was merely a big stink.’
Jeff Locke is currently in his fourth Major League Baseball season, and their second as a full time starter for the Pirates. In the 2013 season, Locke went 10-7 with a 3.52 ERA, earning an accepted place on the National League All-Star Team.
Gibraltar Challenges New UK Gambling Tax
Gibraltar is home to numerous online gambling companies that serve the united kingdom market. (Image: Wikimedia Commons)
Gibraltar is among the most homes that are popular online gambling companies, especially for those who service the united kingdom market.
With a very low tax rate, it was the perfect place for operators to headquarter by themselves while still being in a jurisdiction that was considered reputable and friendly. But a taxation that is new will end what UK officials see as an unjust advantage for offshore operators, and that hasn’t sat well with those running their companies from Gibraltar.
The Gibraltar Betting and Gaming Association (GBGA) has filed a challenge that is legal the British Gambling Commission’s plan to introduce a 15 percent point-of-consumption tax for several video gaming operators who intend to offer service to UK-based customers.
The move employs the GBGA had established their intention to fight the tax back with regards to was initially proposed in March.
GBGA Against New Regulations
Officials in the UK state that the new guidelines will allow all operators to compete on a playing that is level in their lucrative market
At the moment, gambling operators who provide their games to players in the UK pay taxes only in the jurisdiction where they are situated. This means that UK-based companies pay a much higher tax rate their many of their foreign counterparts, whom are positioned in Gibraltar, the Isle of Man or other areas that offer very low tax rates so that you can encourage gambling companies to set up shop.
Under the new guidelines, introduced by the Gambling (Licensing and marketing) Act, taxes is levied on any gambling activity that takes invest the UK, no matter where the gambling site hosts its operations. All operators wishing to provide games in the UK will have to be licensed by the UK Gambling Commission as a element of the new regulations.
A Level Using Field?
Officials in the British say that the new rules will allow all operators to compete on a level playing field in their lucrative market. However the GBGA does not see it that quite way.
‘ The actual only real beneficiaries of the change will be the UK domestic industry and the Gambling Commission itself, which has persuaded great britain government that it must be the global regulator of this high tech and complex industry,’ said GBGA Chief Executive Peter Howitt in a statement.
‘We have an effective and knowledgeable regulator in Gibraltar,’ he continued. ‘That the Gambling Commission thinks it is far better placed to manage the industry here is laughable.’
However, it appears as though the level of dedication for this battle differs among GBGA members. For example, 888 Holdings may support the GBGA position, but past statements in financial reports suggest the company doesn’t particularly fear the taxation scheme. Meanwhile, William Hill plans to keep from the fight entirely, in large part because the firm works closely with the united kingdom government and operates many land-based shops in the united states.
A spokesperson for the Department of Culture, Media and Sport confirmed they was in fact served because of the GBGA’s legal claim, and said that a response will come ‘in due course.’
The Gambling (Licensing and Advertising) Act is expected to go into impact on October 1, 2014. While it’s likely that a lot of major operators will choose to apply for UK licenses underneath the new regulations, it’s possible that some may balk at the taxation scheme and select to focus on other markets instead.