Seeking Alpha

Caesars Entertainment on the prowl in New York

Caesars Entertainment (CZR +2%) says it has submitted an application to New York gaming authorities for a gambling license in Woodbury, New York.

The company plans to partner with Caesars Acquisition Company (CACQ +2.8%) on the development.

What to watch: Four casino licenses in New York are expected to be granted with the Orange County region a particular focus of the industry due to its proximity to New York City.

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Comments (1)
  • Howard Jay Klein
    , contributor
    Comments (351) | Send Message
    Orange county is the crown jewel in the New York state 4 casino region authorization law. Caesars will be going head to head against Genting. With a proprety only 40 miles from the heart of the metro NY/North Jersey area any property there will do well. The problem here is that the Catskills counties, another 50 miles north will likewise get top proposals from the likes of Mohegan Sun and those applicants see the Orange County development as an interceptor--rightly so. The key here is will metro area players divide their business between the two areas so sharply so that neither may be able to ultimately build a critical mass of revenue and visitation. Both will see the huge metro area as its prime feeder market. Both will pile marketing heft into the area. No precise forecast can predict just how players will make those critical choices. In the end if proximity rule the day as it usually does in gaming, Orange county development can significantly reduce the potential of the Catskills. Looking at both proposed areas begs the question as to why the state designated both, risking the possibility that longer term economic expansion envisioned by the law will be diminished by a saturation problem built into the legislation.
    1 Jul 2014, 08:13 AM Reply Like
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