Divestment of assets isn’t uncommon for gambling operators across the globe. If a certain digital asset is a burden or a specific property is underperforming, operators often explore a wide range of options, including potential sales or mergers.
Currently, the leading gaming and entertainment company, Caesars Entertainment, has four casinos across Indiana. The list of properties includes Caesars Southern Indiana Hotel and Casino, Horseshoe Hammond, Harrah’s Hoosier Park Racing and Casino and Horseshoe Indianapolis.
An ongoing focus for Caesars is to reduce its financial liabilities. The potential sale of two of its Indiana properties is one way this can be achieved, an analyst suggests. Shaun Kelley, a senior research analyst for Bank of America, recently revealed that Caesars may consider divesting two of its casinos.
The venues that may be sold are Horseshoe Indianapolis and Harrah’s Hoosier Park. The divestment of the two properties is expected to raise close to $2 billion in net proceeds for Caesars, Kelley estimates. Additionally, the analyst explained that the finalization of the company’s projects in Danville and New Orleans may further boost its growth.
“We expect this sale to raise nearly $2 billion in net proceeds that should reduce traditional and lease-adjusted leverage below five times and close to their targeted range.“
Shaun Kelley, senior research analyst for Bank of America
Possible Buyer Is VICI Properties
The sale of two of Caesars’ casinos in Indiana may be completed by divestment of Centaur Holdings, the holding company of the two properties. The potential buyer, according to the analyst, could be VICI Properties, the owner and acquirer of real estate assets within the hospitality, gaming, leisure and entertainment sectors.
Despite Kelley’s prediction, Caesars is yet to confirm or reject the possible divestment of assets in Indiana. With the start of the year, the leading gaming and entertainment company confirmed the date when it will be releasing its financial results for the fourth quarter and full year 2023. At the time, Caesars said that its results would be released upon market close on Tuesday, February 20, 2023.
On the same day, the company will also host a conference, discussing its latest results as well as other important matters. If Caesars considers the aforementioned divestment, it may be one of the topics up for discussion on that day.
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