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Cyber Threats Become the New Norm for Gaming Industry, Says Caesars' SVP
Caesars Suffers Due To Overlooking Asia
March 10, 2019 Aleksandra Zolotic
Las Vegas-headquartered, Caesars Entertainment, is likely to experience a lack of prospects in the future due to overlooking the Asian market. The company’s current focus is mainly its home market – however, such restrictions in policy may lead to numerous missed opportunities on this massive market of big potential.
Icahn’s Big Return To Gambling World
Carl Icahn’s come back to the industry was made public recently after he bought shares in Caesars. Wall Street stock markets reacted wildly to the rate at which Icahn bought those shares. A significant jump was noticed…
…after an embarrassing plummet by 46% in 2018.
As a matter of fact, this is just the initial step he’s taken regarding Caesars. There were some discussions on board hip, and the names of three new directors who will replace the ones currently in position are already known.
Caesar’s Value Limited Due To Asian Deficit
This US-focused operator, as the analysts from Sanford C Bernstein and Company say, is likely to experience limitations in organic top-line growth. The main reason for this is the company’s policy which restricts their properties to its home market exclusively.
Having in mind their last year’s shocking decline in value of shares, they have been advised to consider rearranging their policy. The purpose is to find the common language with the oriental market, and the recent course of events with competitors, MGM and their Japanese License bid definitely goes in favor of this.
Gambling Hotspots In Asia Without Caesars’ Presence
Even though this company features numerous establishments, including the famous Caesars Palace Las Vegas Hotel and Casino, it comes as a rather unpleasant surprise that they…
…haven’t got a single venue in some of the most prominent Asian gaming sites such as Manila, Singapore, and Macau.
Probably the only thing that could save the day here and turn Caesar’s profits in an upward direction are Icahn’s thorough strategic approaches. Since the company is already strong and stable on the regional market, there are no reasons why things couldn’t be the same in the East.
Enter South Korea
However, the future of Caesars and the Asian market may not be so uncertain…
…because the plan to build a resort near Incheon, South Korea, was recently unveiled.
Only time will tell whether all pieces of the puzzle will fit together. Until then, this is how analysts see the situation:
“One key question is really whether Icahn is a long-term investor looking to create value with the existing company or looking to flip his ownership for more immediate returns. He has done both in the past.”
Source:
“Lack of Asia exposure an overhang for Caesars: brokerage”, ggrasia.com, March 6, 2019.
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I really hope that Icahn’s big return is all about big business plans. If he is smart enough, he’ll know exactly what to do. The truth is, Asia is big, there is plenty of room for all kinds of investments and agreements.