The gaming and entertainment industry often sees companies divesting their assets when certain properties are not performing as expected. This is the case for Caesars Entertainment, which is considering selling two of its Indiana casinos in an effort to reduce financial liabilities.
The potential sale of Horseshoe Indianapolis and Harrah’s Hoosier Park is expected to generate close to $2 billion in net proceeds for Caesars, according to analyst Shaun Kelley of Bank of America. This move would also help the company bring down its leverage to a targeted range.
One possible buyer for the properties is VICI Properties, a company that specializes in acquiring real estate assets in the hospitality, gaming, leisure, and entertainment sectors. While Kelley has made this prediction, Caesars has not yet confirmed or denied the potential divestment.
The company is set to release its financial results for the fourth quarter and full year 2023 on February 20, 2023. Along with the financial results, Caesars will also host a conference to discuss important matters, which may include the potential divestment of its Indiana properties.
Overall, the potential sale of the two Indiana casinos is part of Caesars’ strategy to optimize its portfolio and improve its financial standing. It remains to be seen whether the divestment will indeed take place, but it is clear that Caesars is actively exploring ways to strengthen its position in the gaming and entertainment market.