Caesars Entertainment is selling its Macau golf course, implying that the corporation is abandoning its plans to grow into the lucrative Chinese resort. home
Caesars stated in a filing to the Securities Exchange Commission that a firm called Pearl Dynasty Investments Ltd. is buying the property for $438 million.
According to media sources, Caesars, the largest casino operator in the United States, first purchased the golf course property in 2007, paying $578 million for the Macau Golf Course. The corporation, then known as Harrah's Entertainment, hoped to establish a foothold in the resort, which has since surpassed Las Vegas as a gambling destination.
In 2009, Harrah's chief executive Gary Loveman stated, "We've made it quite clear we would like to see the Caesars Palace brand in Macau." "We obviously know that there are six licensees, and it has to fit through that lens in some way."
However, despite years of attempting to put together a project, Caesars still lacks a gaming license in Macau, although rivals MGM Resorts, Las Vegas Sands, and Wynn Resorts are well established.
Caesars said the revenues from the golf course sale will be used to pay down debt, which has hampered the company's capacity to grow. Pearl is putting down a $65.7 million deposit on the acquisition, which is anticipated to finalize later this year.
Last month, Caesars Entertainment revealed plans to raise $1.2 billion by selling stock.
Mr. Loveman told reporters that not entering the Macau market was the biggest mistake Caesars has ever made.
According to the Las Vegas Review-Journal, Macau's gaming revenue reached a new high of $38 billion in 2012, more than six times that of Las Vegas casinos. The revenue growth has continued in 2013, with the gaming industry up 16% through July.