Caesars is interested in the Japanese market
The Caesars Entertainment group has established itself as the largest casino operator in the United States.
Like many others of their international competitors they are paying close attention to the development of the legalisation of gambling and Japan.
If this is interesting to you as well, you should also know that we previously reported about this topic in these articles : Casinos legalisation in Japan on its way, A statement on the legalisation of land based casinos in Japan and Legalisation of casinos in Japan delayed.
An investment of at least $5 billion
Gary Loveman, the CEO of Caesars Entertainment, stated at a press conference that a casino complex in Japan would require a minimum investment of $5 billion.
Despite such a large budget, he said that the group would have no problem financing this hypothetical project.
It is indeed possible for them to finance a significant portion of this amount on the debt market.
For this reason Caesars Entertainment will not have any problems in funding the project of setting up a world-class establishment in Tokyo.
Other interested competitors
Unfortunately for this group, they are not the only casino operators that are interested in Japan.
In fact, some of the biggest competition are Las Vegas Sands and MGM Resorts International, who have also expressed spending billions of dollars to launch huge casino complexes on the market, that should also quickly become the most important market after Macao.
All these different projects should be funded through the principal of the cash flow they will generate.
Consequently, the casino operators do not expect to encounter great difficulties in raising the necessary funds for the realisation of the projects.
Details on the financial health of the group
Caesars Entertainment was founded in 1973 in Reno, the US state of Nevada, and has since grown gradually through various expansions, several acquisitions and many creations of new establishments.
Today, the group operates gaming establishments on four continents.
They see themselves as a casino operator whose geographical scope is wider than anyone else’s.
On March 31, 2014, their debt stood at over $23 billion.
As a result of this, the group sold some of their assets to refinance their debt to remain solvent.
Their financial health has seen better days, but despite of this the company should still be able to invest in Japan without having to worry.
In fact, financing the market for a casinos is very strong at the moment.
