More Bad News for Online Poker
April 1st, 2009More bad news for online poker and casino games, a bond analyst said this week that worldwide casino operator Harrah’s Entertainment’s could end up in bankruptcy court before the year is out, according to the Las Vegas Gaming Wire. Apparently the company is trying to restructure its debt.
“We think this latest restructuring is an attempt to rearrange the deck chairs on the Titanic,” Barbara Cappaert, a bond analyst with KDP Investment Advisors, said. “The company will very likely throw in the towel and reduce debt via a debt/equity restructuring (or bankruptcy) later this year to streamline its balance sheet.” Harrah’s said it wanted to swap an unspecified amount of debt for $2.8 billion in lower value/ higher interest notes that would mature in nine years.
Harrah’s owners, private equity firms Apollo Management and TPG Capital, are offering to exchange the notes issued in December for $250 million, or 37 cents on the dollar for notes tendered and accepted by April 17, accordin to Las Vegas Gaming Wire. This news is certainly nothing shocking, as casinos are going bankrupt all the time these days.
However, that really has nothing to do with poker, as poker provides a minute amount to the total revenue of a casino. Most of it comes from slots and sports betting. I believe that poker, and especially online poker, will always thrive, no matter what the state the world economy is in.
