I want to give everyone who is not familiar with Las Vegas and the casino game a better understanding of this deal. It is hard for me to translate the numbers. I'm not sure how many people would understand, so I am going to tell everyone in a layman's way how it works.
The M Resort was opened a few years ago, This casino was built specifically to capture the SoCal crowd. I have been to the M a number of times. Beautiful place with lots of scenery.
Long story short, the market crashed and the owners of the M were forced to do something. The outstanding debt was close to 800 million, the bank sold the debt for 230 million to Penn Gaming (23con$). Penn Gaming is the outfit that is building the casino at The Kansas Speedway. They own a number of non-Las Vegas gaming venues.
I have been trying to figure out what the re-sell price on a completed Vegas casino would be. I am starting to get a better idea. If you take into account Phil Ruffin's purchase of Treasure Island (roughly 30con$) and combine that with the M re-sell of (23con$). Currently, the re-sell value for a Las Vegas casino is somewhere between (25-27con$). Remember, I am giving a very "layman's" view on the numbers, different locales will have different re-sell figures. This is only what I have seen so far.
I believe a number of Vegas casino's are destined to change hands over the next five years. I am making it a priority to get an accurate view on where they are going? Who is buying them? Whomever chooses to read my blog will be hearing a lot about the casino's in Las Vegas. Have a Nice Day..Rob Astle
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