Representatives from Caesars Entertainment Corporation, an internationally known gaming company with a 20 percent stake in Rock Ohio Caesars, also defended its financial stability during the meeting, following a standard investigative report by a gaming consulting group on Wednesday that expressed concern over its billions in debt.
That consulting group, Spectrum Gaming Group, determined in its voluminous report that Caesars Entertainment Corporation had more than $26 billion in debt. It recommended the commission continue to monitor the company.
Eric Hession, treasurer and senior vice president of finance, said the report was inaccurate because it didn't calculate the company's recent debt reduction of $5 billion. He said the company is recovering and making investments that are giving it more financial flexibility.
Casino reps defend finances to Ohio regulators
April 20, 2012
Associated Press
COLUMBUS, Ohio (AP) — Gaming regulators on Thursday questioned a company slated to open Ohio's first casino next month about one of its owners' old business practices, as well as the financial stability of another company heavily invested in the project.
Daniel Gilbert, majority owner of Rock Ohio Caesars, addressed members of the Ohio Casino Control Commission during a two-hour presentation about his company's vision for the Horseshoe Casino Cleveland, scheduled to open in May.
But Gilbert, who also is a majority owner of the Cleveland Cavaliers basketball team, answered questions from the commission over a $60,000 unsecured loan he personally made to former Detroit Mayor Kwame Kilpatrick in 2009. Kilpatrick owes that city more than $800,000 from a criminal case that forced him out of office in 2008. Gilbert never faced criminal charges over the loan, and investigators determined it was not part of an extortion or bribery scheme.
Gilbert said he thought the loan at the time would "provide a pathway" for Kilpatrick to provide for his family.
"In hindsight, poor judgment to make that loan," he said as he faced commission members.
Representatives from Caesars Entertainment Corporation, an internationally known gaming company with a 20 percent stake in Rock Ohio Caesars, also defended its financial stability during the meeting, following a standard investigative report by a gaming consulting group on Wednesday that expressed concern over its billions in debt.
That consulting group, Spectrum Gaming Group, determined in its voluminous report that Caesars Entertainment Corporation had more than $26 billion in debt. It recommended the commission continue to monitor the company.
Eric Hession, treasurer and senior vice president of finance, said the report was inaccurate because it didn't calculate the company's recent debt reduction of $5 billion. He said the company is recovering and making investments that are giving it more financial flexibility.
Spectrum ultimately recommended the commission grant Rock Ohio Caesars an operating license after a financial background report of the company as a whole applauded the financial health of Rock Ohio Ventures, which has an 80 percent stake in the company.
The commission, which also asked the company about its plans for safety and a diverse workforce during the meeting, said it wants to make a decision on the license May 2. It's one of four licenses being sought for casinos in Cleveland, Cincinnati, Columbus and Toledo.
The Cleveland facility will feature a 100,000-square-foot gambling floor with 2,100 slot machines, 63 table games and 30 poker tables. Marcus Glover, general manager for that casino, said the company expects to employ about 1,600 people.
Spectrum's report also raised concerns about Gilbert's involvement in sports betting while he was a college student at Michigan State University in 1981. The matter was handled at the university level at the time.
The report also recommended a hearing be held regarding the Cleveland casino's vice president of finance, Roger Lee Dillard III, over how he disclosed information about his accountant's license in North Carolina. The company said the executive is addressing the issue.
Spectrum also cleared its background check on another business partner in the deal, Lake Ohio Development CEO and former world poker champion Lyle Berman. Berman's company owns 10 percent of Gilbert's ownership in Rock Ohio Gaming, a subsidiary of Rock Ohio Ventures.
Casinos are going up in Ohio following approval by voters in 2009. Certain revenue from the casinos will be distributed to public school districts and various support programs, including problem gambling.
Through the joint venture, Rock Ohio Caesars will operate the Cleveland casino and another in Cincinnati slated to open in spring 2013. The $400 million development in the northeast corner of the city's center has had two construction accidents in the last six months, including a floor collapse in January that injured at least a dozen employees, and a partial garage collapse in December. No one was injured.
Penn National Gaming plans to open its Toledo casino within a few weeks after Horseshoe Casino Cleveland, with its Hollywood Casino Columbus to follow in the fall.
That consulting group, Spectrum Gaming Group, determined in its voluminous report that Caesars Entertainment Corporation had more than $26 billion in debt. It recommended the commission continue to monitor the company.
Eric Hession, treasurer and senior vice president of finance, said the report was inaccurate because it didn't calculate the company's recent debt reduction of $5 billion. He said the company is recovering and making investments that are giving it more financial flexibility.
Casino reps defend finances to Ohio regulators
April 20, 2012
Associated Press
COLUMBUS, Ohio (AP) — Gaming regulators on Thursday questioned a company slated to open Ohio's first casino next month about one of its owners' old business practices, as well as the financial stability of another company heavily invested in the project.
Daniel Gilbert, majority owner of Rock Ohio Caesars, addressed members of the Ohio Casino Control Commission during a two-hour presentation about his company's vision for the Horseshoe Casino Cleveland, scheduled to open in May.
But Gilbert, who also is a majority owner of the Cleveland Cavaliers basketball team, answered questions from the commission over a $60,000 unsecured loan he personally made to former Detroit Mayor Kwame Kilpatrick in 2009. Kilpatrick owes that city more than $800,000 from a criminal case that forced him out of office in 2008. Gilbert never faced criminal charges over the loan, and investigators determined it was not part of an extortion or bribery scheme.
Gilbert said he thought the loan at the time would "provide a pathway" for Kilpatrick to provide for his family.
"In hindsight, poor judgment to make that loan," he said as he faced commission members.
Representatives from Caesars Entertainment Corporation, an internationally known gaming company with a 20 percent stake in Rock Ohio Caesars, also defended its financial stability during the meeting, following a standard investigative report by a gaming consulting group on Wednesday that expressed concern over its billions in debt.
That consulting group, Spectrum Gaming Group, determined in its voluminous report that Caesars Entertainment Corporation had more than $26 billion in debt. It recommended the commission continue to monitor the company.
Eric Hession, treasurer and senior vice president of finance, said the report was inaccurate because it didn't calculate the company's recent debt reduction of $5 billion. He said the company is recovering and making investments that are giving it more financial flexibility.
Spectrum ultimately recommended the commission grant Rock Ohio Caesars an operating license after a financial background report of the company as a whole applauded the financial health of Rock Ohio Ventures, which has an 80 percent stake in the company.
The commission, which also asked the company about its plans for safety and a diverse workforce during the meeting, said it wants to make a decision on the license May 2. It's one of four licenses being sought for casinos in Cleveland, Cincinnati, Columbus and Toledo.
The Cleveland facility will feature a 100,000-square-foot gambling floor with 2,100 slot machines, 63 table games and 30 poker tables. Marcus Glover, general manager for that casino, said the company expects to employ about 1,600 people.
Spectrum's report also raised concerns about Gilbert's involvement in sports betting while he was a college student at Michigan State University in 1981. The matter was handled at the university level at the time.
The report also recommended a hearing be held regarding the Cleveland casino's vice president of finance, Roger Lee Dillard III, over how he disclosed information about his accountant's license in North Carolina. The company said the executive is addressing the issue.
Spectrum also cleared its background check on another business partner in the deal, Lake Ohio Development CEO and former world poker champion Lyle Berman. Berman's company owns 10 percent of Gilbert's ownership in Rock Ohio Gaming, a subsidiary of Rock Ohio Ventures.
Casinos are going up in Ohio following approval by voters in 2009. Certain revenue from the casinos will be distributed to public school districts and various support programs, including problem gambling.
Through the joint venture, Rock Ohio Caesars will operate the Cleveland casino and another in Cincinnati slated to open in spring 2013. The $400 million development in the northeast corner of the city's center has had two construction accidents in the last six months, including a floor collapse in January that injured at least a dozen employees, and a partial garage collapse in December. No one was injured.
Penn National Gaming plans to open its Toledo casino within a few weeks after Horseshoe Casino Cleveland, with its Hollywood Casino Columbus to follow in the fall.
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