ANALYSTS don’t believe that Caesars Entertainment allegedly losing money and straining under debt will put the Horseshoe Casino Cleveland in danger. Caesars’ financial health was a hot topic this week as state consultants reported on the strength of Rock Ohio Caesars, the joint venture behind the casino scheduled to open May 14 on Public Square.
The New Jersey-based Spectrum Gaming Group gave the partnership an overall solid appraisal — clearing the way for likely approval of licensing on May 2 — but said Caesars Entertainment’s troubles are noteworthy and bear watching.
Caesars, the largest domestic casino owner and a name synonymous with Las Vegas, has struggled from the effects of a heavily leveraged 2008 buyout by two private equity firms and the economic downturn.
Caesars will serve as manager of the Horseshoe and holds just 20 percent of the joint venture led by Cavaliers’ majority owner Dan Gilbert. It’s part of a new operating model that allows Caesars to enter different markets while minimizing its investment.
“The financial condition of the parent company doesn’t have much of an impact on what they will do in Ohio,” said Dennis Farrell, a North Carolina-based gaming analyst for Wells Fargo Securities.
Analysts also claimed that they are optimistic about the future of the gambling industry in Cleveland and the rest of Ohio. The state also will get casinos in Toledo and Columbus and possibly video slot machines at seven horseracing tracks. The racetrack gambling faces a court challenge in Franklin County.
