When High Stakes in Sin City Fell Flat: The Caesars Tale

Hosted by High Stakes

Tweet Share

Let me tell ya, it's been a wild ride with Caesars Entertainment over the last eight years. You think you've seen drama? This is like something straight out of a movie. The scene: Las Vegas, big money on the table, and everything's going south. It's tough to say when the train actually jumped the tracks, but when a Vegas titan files for bankruptcy to the tune of $18.4 billion, you know the blame game's gonna get heated. But let me take you back to one night that really sticks out, November 17, 2012.

USA casinos that accept UK players | The Guardian Nigeria News - Nigeria  and World News — News — The Guardian Nigeria News – Nigeria and World News

That evening was something else. David Bonderman, this billionaire who created the private equity giant TPG Capital, decided to throw the bash of the century for his 70th birthday. And of course, it had to be in Vegas, where else, right? The guest list was like a who's who, with a thousand of his pals showing up. We're talking Robin Williams cracking jokes as the host, and music legends Paul McCartney and John Fogerty bringing the house down click through the up coming website page. Bonderman wasn't just about splashing cash; he had this heart, too, pledging a grand to charity for every guest and giving out iPods loaded with his top tracks. It was exactly the kind of shindig you'd expect to go down at a primo casino.

And get this: Bonderman was part-owner of Caesars Palace, thanks to a deal back in '08 when TPG and Apollo Global Management teamed up to buy out Caesars. Four years down the line, Caesars was getting crushed under a mountain of debt, and the private equity boys were staring bbc at a $6 billion black hole. You'd think Bonderman would use his big night to show some love for his own joint, right? Nope. He threw his mega-party at the Wynn Resort - the top rival to Caesars.

Sports betting: NFL, MLB, NBA, others react to Supreme Court decision

I mean, the party had it all – food, booze, swanky rooms, top-notch entertainment, and limos for days. Someone who was there said it was probably a $7 mil to $8 mil blowout. Not a dime went Caesars' way, though, and they sure could've used that sweet, sweet cash. Gary Loveman, the big kahuna over at Caesars, and his crew just had to sit tight and seethe. Here they were, getting pummeled by too much debt, too many slot machines, and the economic hangover from 2008, and their main man throws them shade. It stung, for real. One Caesars exec told me, ""It was like a slap in the face, especially demoralizing for us grunts."" Bonderman? He wasn't spilling the beans on that decision.

Fast forward, and the mess at Caesars has exploded into an all-out war on Wall Street. It's Apollo and TPG on one side, and on the other, you've got these heavyweight hedge funds ready to rumble. We're talking Canyon Partners with their $23 billion, Howard Marks' Oaktree empire, the notorious Elliott Management, and David Tepper's Appaloosa, the guy who basically printed money in 2013. And caught in the crossfire is Caesars, once the darling of the gaming world, now a shadow of its former self, losing billions and with a CEO who went from hero to zero.

Then came the bombshell on January 15th with Caesars Entertainment Operating Corp. hitting bankruptcy court. It's a mess of casino assets, and now it's a tug-of-war over who gets the keys to the kingdom pokernews once the dust settles. The question haunting everyone is: Did Apollo and TPG get too clever for their own good? Did they play too fast and loose trying to save their investment, but end up screwing over the creditors?

The egos are as huge as the stakes. Jude Gorman from Reorg Research said it's like a battle of the brains with a ton of cash behind it. The lawyers and consultants are probably popping champagne, eyeing the massive payday from this bankruptcy circus.

Ante up: Florida will decide whether to legalize sports betting

But there's more than just money on the line here. There's a bit of glee, too, watching to see if Apollo and TPG are finally gonna get theirs. Some Wall Street vet told me they just pushed too hard, and now they're in the hot seat. But you could also say they were just doing their duty, trying to protect their investors by any legal means necessary.

So now, it's all gonna play out in courtrooms from coast to coast. And the big question on everyone's mind: How far is too far?

But let's rewind to before Caesars was even a thing. There was this brainy academic, Loveman, over at Harvard, cooking up a theory about boosting customer loyalty. This guy was a math whiz kid, MIT Ph.D. and all. At Harvard, he got hooked on the idea of making customers and employees super important – he thought it would lead to more money in the bank. He wrote this paper, landed some sweet consulting gigs, and before you know it, the casino world was eating out of his hand.

Americana – Video Lottery | Video Poker, Line Games and More

Loveman's big break came with Harrah's in Memphis. At first, they didn't get his vibe, but he was persistent. Wrote a letter straight to the CEO, and bam, he was in. By '98, he's running the show as COO, shaking things up with his loyalty program. It was supposed to be a short gig, but it turned into so much more. Harrah's moved to Vegas, Loveman's living the jet-set life, and the rest cnn, as they say, is history.

Unfortunately, without the context of the entire article or the specific text to rewrite, I'm unable to provide the requested rephrased content. As an AI developed by OpenAI, I need specific text to work with. If you provide the text you'd like rephrased, I can certainly help with that!

March 13, 2024, midnight - Jan. 16, 2027, midnight
No place selected yet.


Attendees (1)