Can Caesars ever dig itself out?

With a mountain of debt weighing it down, can Caesars Entertainment ever dig itself out organically? I bet the strategy Caesars’ hedge fund controlling shareholders will take includes long legal skirmishes that will eventually whittle down all interests. Caesars will be left with smaller scale and less leverage.  In the meantime, Caesars marquee properties are becoming tired at the centre of the Las Vegas strip.

Stakeholders should applaud the recent targeted investments Caesars has made in Strip properties (although not the terms of such investments to bondholders). Adding shopping districts and entertainment venues to existing properties will provide high incremental returns. But without a clear Asian or online growth plan, Caesars will suffer as US regional gambling becomes more competitive.  Strong balance sheets will become bigger weapons as US regional casino operators fight in static growth markets. And Caesars certainly does not have a strong balance sheet.

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