With Caesars bleeding cash, new rumors have surfaced that they may try to sell the Flamingo Casino on the Las Vegas Strip. The company would ask for $1 billion for the property, which may be difficult to get for a 75 year old resort in need of renovation and repairs.
Caesar’s Entertainment just reported that, in the first quarter of this year, they made $2.3 billion! Still, the company somehow lost $700 million in just the first three months of this year. So with all this cash coming in, how is Caesar’s still losing money?
First, their online and mobile division made the company about $40 million last year. But this year it’s actually lost the company over $50 million! Plus, the company’s operational expenses rose to $2.3 billion, which is the same number they reported as their first quarter profits for this year!
In an effort to recover, Caesars has not made it a secret that they would like to sell one of their Las Vegas Strip casino properties. Specifically, that now looks to be the Flamingo Casino. Built in 1946, it’s the oldest casino on the Las Vegas Strip and a landmark. And that may actually work against the sale.
Caesars expects to get about $1 billion for the sale of Flamingo Casino. But will a buyer be willing to fork over so much cash for a resort in need of so much work? We should find out at some point this summer!
