Sunday, September 19, 2004
Copyright © Las Vegas Review-Journal

INSIDE GAMING: Aztar's up for sale ... What else is new?

Wall Street sources are saying Aztar Corp. Chairman Paul Rubeli is seriously marketing his company to active suitors. They say the the company's biggest asset is the real estate on which its Tropicana hotel-casino sits in Las Vegas. Sources say a deal would make sense if it positioned Aztar with another Midwest operator. They also say the most likely deal would be done with a private equity fund that could use multiple investments to combine two or more midtier gaming companies. One analyst, however, said there have been sale rumors about Aztar since he was in eighth grade -- presumably several decades ago. Aztar declined to comment.

¥ ¥ ¥

Word on the Street is that Harrah's Entertainment is close to a final deal with Colony Capital to sell four properties involved in its $9.4 billion buyout of Caesars Entertainment, a move that could speed the regulatory process. Harrah's has been hunting for buyers to unload some of the less-critical properties it would own after the merger. Colony Capital, which recently bought the Las Vegas Hilton and owns Resorts International near Atlantic City, reportedly wants to buy Atlantic City Hilton and Bally's Tunica (Miss.), both owned by Caesars, and Harrah's Tunica and Harrah's East Chicago. Sources said that, together, the four properties should command a price of about $1.26 billion.

¥ ¥ ¥

Sources are also saying serious suitors are expressing interest in other second-tier properties Harrah's Entertainment would own after the merger. Four of the most likely takeout candidates are Harrah's Lake Charles Casino in southwest Louisiana and Bally's New Orleans, Caesars Tahoe and Flamingo Laughlin, which are owned by Caesars Entertainment.

¥ ¥ ¥

The Venetian is plowing full-speed ahead with developing an Internet gaming site, even though most other major operators have either shied away from or dropped plans for such projects. The company has invested more than $1.3 million in its site. It has landed an interactive gaming license and an electronic betting center from the Alderney Gambling Control Commission in the Channel Islands off the coast of England. The good news: players will not have to visit the geographic site to bet.

¥ ¥ ¥

Guess who's coming to dinner? Well, to the Forum Shops. Harry Winston, Bruno Magli, Modafino Italian Design and Casa Fuente are some of the shops committed to the expansion. Like Breakfast at Harry Winston's, except Truman Capote made it Tiffany's but that's already across the street in the Bellagio. Anyhow, among high-class jewelry lovers, Harry Winston's has a lot louder ring than Tiffany's.

The Inside Gaming column is compiled by Gaming Wire Editor Rod Smith. You can contact him by phone at (702) 477-3893, fax (702) 387-5243 or e-mail at rsmith@reviewjournal.com.