LAS VEGAS (KSNV) — Tilman Fertitta is poised to become one of the most powerful figures on the Las Vegas Strip, with a $5.7 billion cash deal to buy Caesars Entertainment and add the casino giant to a portfolio that already includes the Golden Nuggetand a wide range of businesses.
The much-anticipated move would give Fertitta control of one of the largest gaming companies in the world and put him in direct competition with MGM.
Fertitta is a businessman whose holdings include Landry’s and other restaurant chains, and he owns the NBA’s Houston Rockets. UNLV gaming historian David G. Schwartz also noted Fertitta’s diplomatic role, saying, “Companies like Landry’s. He owns a basketball team. He is also the United States Ambassador to Italy and San Marino.”
Fertitta was sworn into the ambassador role in May of last year, and Schwartz said the purchase reflects Fertitta’s long track record running businesses. “I think people can look at it as, this is somebody who has been running other businesses for quite some time and is doing well enough that he has money to buy a big casino company so a lot of people would look at that as a positive,” Schwartz said.
But the deal also comes with significant financial obligations. Fertitta would assume $11.9 billion in Caesars Entertainment debt, raising questions about whether cost-cutting could lead to job losses.
UNLV economics professor Nicholas Irwin said the debt load has been a concern for workers and suggested the deal could ease some of that strain. “I am sure that giant debt overhang was always top of mind for a lot of folks working there and, you know, this relieves some of that pressure,” Irwin said.
Irwin said it is still early, and decisions about staffing and operations may take time. “I think, in the early stages, it is definitely going to be a ‘feel it out’ process,” he said. He also noted that while taking on debt aggressively could be a good sign for Caesars employees, there is still more debt to pay off and job cuts could remain a possibility down the road.
Another way to manage debt is to find ways to bring in more customers and increase tourist spending, a dynamic that could affect tourism. UNLV hospitality professor Amanda Belarmino said large mergers can create new options for visitors. “Whenever you have these mergers that go, not just within the city but throughout the rest of the country; it opens opportunities for guests,” Belarmino said.
Belarmino said Fertitta’s ownership of the Golden Nugget downtown and the potential addition of Las Vegas Strip properties could give tourists more price variety. She also predicted active ownership that could boost tourism and local participation on the Las Vegas Strip.
“I think that there may be some really good potential for us as we see an NBA team, as we see other things going forward. And I think it is good to have someone who is very business savvy and has this kind of experience and community involvement; has a lot of potential good things for the city,” Belarmino said.
Experts also pointed to another possible strategy for dealing with debt: selling off properties. With the Caesars purchase, Fertitta would be the only casino boss with properties on the Las Vegas Strip and in downtown. Analysts said the Golden Nugget’s short-term performance could be an indicator of whether it remains part of the long-term portfolio as Fertitta Entertainment works to keep finances stable.
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‘ Some details of this article were extracted from the following source news3lv.com ’
