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Caesars Sold For $438M In Macao Land Holding

Caesars Entertainment Inc. ended its nearly six-year flirtation with Macau on Friday.

The casino operator sold a 175-acre golf course near the Kotai Streep area, a gaming enclave in China, to an Asian developer for $438 million.

Trading disclosed within the company’s quarterly report to the U.S. Securities and Exchange Commission is expected to close by the end of the year. 슬롯머신

Caesars said this week it signed a purchase agreement with Pearl Dynasties Investments. The buyer paid Caesars $65.7 million in land deposits. Caesars could maintain 10% of the purchase price, or $43.8 million, if the contract breaks down.

The company said it will use its estimated $420 million in transaction proceeds to pay off its debt. Caesars Entertainment has the highest long-term debt of $23.7 billion in the gaming industry.

The company did not comment on the transaction other than the SEC filing.

In 2007, Caesars, without a Macau game license, paid $578 million for the land, the site of a Macau golf course, with the aim of developing a hotel-casino complex.

But Macau’s government has never made any additional concessions to the game, and has shown no intention of increasing the number of licenses beyond the current six concessions and sub concessions.

Caesars, then known as “Haras Entertainment,” never submitted an application in the Macau licensing process after the Chinese government ended a 40-year monopoly in Macau dominated by Hong Kong billionaire Stanley Ho in 2001.

MGM Resorts International, Wynn Resorts Ltd., Ltd., and Las Vegas Sands Corp. all operate resort developments in Macau.

Gary Loveman, president of Caesars Entertainment, which rejected Win’s deal to buy a subsidiary in 2006, said not entering the Macau gaming market was the company’s biggest mistake.

Macao game sales were a record $38 billion in 2012, more than six times the revenue generated by Las Vegas casinos. The Macao game market grew 16% during the first seven months of 2013.

Caesars renamed the development business Caesars Golf. Last year, the company took a $101 million record on the land when it put the land up for sale.

Caesars shares closed up 75 cents, or 4.26 percent, at $18.36 on Nasdaq Global Select. Caesars shares have more than doubled this year and reached an all-time high of $18.76 at one point on Friday.

Caesars is in the process of spinning off its gaming business interacting with Planet Hollywood Resorts, and a planned Baltimore casino into a separate company owned by the gambling giant.

In a filing by the Securities and Exchange Commission (SEC) in July, company officials say they will raise $1.18 billion from the sale of shares in the new public company.

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