Tag Archives: chips

Carl Icahn Cashing in His Chips on Tropicana Entertainment, Gathering $1.85 Billion

Eldorado Resorts to Get Tropicana Entertainment Business; Sell Residence to Gaming & & Leisure

Tropicana Atlantic City

Icahn Enterprises consented to sell its majority-owned subsidiary, Tropicana Home entertainment Inc., for a total cost of $1.85 billion. The deal will see Tropicana’s realty go to Video gaming and Leisure Properties Inc. and its video gaming and hotel operations to Eldorado Resorts Inc.

. Icahn Enterprises (NASDAQ: IEP)first gotten an interest in Tropicana in 2008 after the predecessor company filed for Chapter 11 insolvency reorganization. It showed to be a winning gamble.

“Tropicana was insolvent and desperately needed brand-new management. At that time, we determined this undervalued asset as being a best scenario to deploy our method operandi, by which we look for to get underestimated possessions, nurture, guide and enhance their condition and operations, and to eventually significantly boost value for all shareholders,” Carl C. Icahn, chairman of Icahn Enterprises, said. “We turned Tropicana into a great casino company that today owns 7 gambling establishments.”

The crown gem of its holdings is the 1,882-room Tropicana Casino & & Resort in Atlantic City, which Icahn picked up for $200 million, or about $106,270 per room.

The 7 combined residential or commercial properties included in the deal overall 350,000 casino square feet, 7,416 slot machines, 237 table video games and 4,993 hotel rooms. The list price corresponds to about $370,520 per space.

Tropicana Atlantic City is third-largest grossing gambling establishment in Atlantic City, drawing in $489 million in earnings in 2017 and posting a gross earnings of $91.9 million, according to the NJ Department of Gaming Enforcement. The revenue was an almost 72 percent jump over 2016 earnings.

In the offer, Gaming and Leisure Characteristic (NASDAQ: GLPI )will pay$1.21 billion for substantially all of Tropicana’s realty. It will enter into a master lease with Eldorado Resorts (NASDAQ: ERI) for the residential or commercial properties. That offer does not consist of the MontBleu Casino Resort & & Spa in South Lake Tahoe and the Tropicana Aruba Resort and Gambling Establishment. Tropicana plans to dispose of Tropicana Aruba Resort and Gambling establishment prior to closing.

Eldorado will participate in a triple-net master lease for the acquired properties with an initial term of 15 years, with renewals of up to Twenty Years at Eldorado’s alternative. The initial annual lease under the regards to the lease is expected to be $110 million.

Eldorado will use a portion of those earnings from the sale of the Aruba property to assist money the remaining $640 million of money factor to consider payable in the acquisition.

Eldorado Resorts will end up owning the running assets of seven casinos in six states, including the Tropicana Laughlin Hotel and Casino and the MontBleu Gambling Establishment Resort & & Medical Spa in South Lake Tahoe; as well as gambling establishments in Indiana (Tropicana Evansville); Louisiana (Belle of Baton Rouge Gambling Establishment & & Hotel); Mississippi (Trop Casino Greenville); Missouri (Lumière Place); and New Jersey (Tropicana Casino and Resort, Atlantic City).

More than 200 million cards issued with brand-new security chips

In an effort to lower fake and charge card fraud more than 200 million payment cards have been provided with embedded computer chips in the U.S., ahead of a Oct. 1 deadline for the switch to such cards, according to the Smart Card Alliance.

Charge card companies have actually set the October due date which will certainly need U.S. consumers to bring a brand-new type of card and retailers across the nation to upgrade payment terminals.

Randy Vanderhook, executive director at the Smart Card Alliance which counts Visa Inc, MasterCard Inc, American Express Co and Discover Financial Solutions as its members told Reuters there are a lot more chip cards in the hands of customers than there are merchant places that are equipped to accept them.

“Many individuals have several cards in their wallet,” Vanderhook said.

“So even if people get one card in their wallet that’s their primary shopping card then it does not matter that there are still numerous thousands of other cards that have yet to be replaced.”

The Alliance expects to issue 600 million chip-enabled cards by 2015. The total number of payment cards in the united state stands at approximately 1.2 billion, which includes credit, debit, charge and other types of payment cards.

U.S. merchants are investing $8.65 billion for upgrading their payment terminals and some consisting of Target Corp are prepared to accept the new cards. It is not completely clear at the minute how many U.S. merchants have actually updated their payment terminals.

“Retailers are making a huge investment in order to upgrade their terminals to accept these cards,” stated Brian Dodge, executive vice president of the Retail Industry Leaders Association.

“However the level of security in these cards is not what it ought to be and it is not equal to exactly what is offered in the remainder of the world,” Dodge stated.

U.S. banks and card business will certainly not issue individual identification numbers (PINs) with the new credit cards, an added security step that would render taken or lost cards virtually ineffective when making in-person purchases at a retail outlet.

Instead, they will certainly stick with the present system of needing signatures.

Experts predict that charge card scams at brick-and-mortar sellers will fall after the intro of chip-enabled cards, however that online fraud will rise, as has taken place in other countries making use of the innovation.

Research study and consulting firm Aite Group estimates U.S. online card scams will more than double to $6.6 billion from $3.3 billion between 2015 and 2018.