Why Caesars Is Stacking Its Chips in South Korea

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March 19 (Bloomberg) -- Gary Loveman, CEO of Caesars Entertainment, explains why the company is stacking its chips in South Korea and comments on the state of the U.S. economy and how Las Vegas is attracting new visitors. He speaks with Trish Regan on Bloomberg Television's "Street Smart." (Source: Bloomberg)


The first foray into asia?

It is our first one.

This is the first one that has made it to fruition and we are very excited about it erie wise the asian market important to you?

It has had unprecedented growth for the gaming industry.

More recently in singapore where the gaming market went from virtually nothing to almost the size of las vegas very quickly.

South korea offers a tremendous opportunity and has a long history of japanese users as well.

Let me ask you a little bit about the politics of this.

We have seen a lot of u.s. companies very concerned about their operations in russia as a result of coming sanctions.

Operating in a region so close to one as volatile as north korea, did that give you pause?

It really didn't. obviously all south koreans are concerned about what goes on in the north, and we in the united states are as well.

That the south korean economy is very strong and very well administered.

The regulatory structure is seemingly well-developed and mature.

We don't have a lot of faith in what happens with north korea, we feel like an investment in south korea is a good one.

They are hoping to bring a lot of asian customers into vegas.

As you make these plants in south korea, it's part of a goal to bring your asian customers into vegas or into the u.s. properties as well?

We will.

These customers will not be korean nationals.

Korean law does not permit locals to gamble in their facilities.

These will -- with 40 years experience with caesars operating with customers in china, we will certainly invite many of them to come and see us in las vegas, and many of them do already.

You have a pretty macro view of the world and what people are willing to spend these days.

What is your sense of the u.s. economy?

Do you feel we are in enough of a recovery mode?

We were just listening earlier to fed chair janet yellen talking about the key metric that the fed watches.

What is your sense of how we stand right now?

I'm optimistic about the u.s. economy for the first time in a long time.

We are seeing sustained expansion, but we all ought to be realistic.

The rate of expansion remains tepid.

These are not the numbers that in prior years would have gotten us excited.

It is increasingly across the board in terms of sectors and across a number of different categories of guest at we see in las vegas and other places.

It's not going to be easy for a long time.

They will have to work hard and be prudent in how they control their expenses.

What does that mean for expansion opportunity here in the u.s.? we're opening a new place in baltimore this summer that i think will do exceptionally well.

Opening in markets that already have a lot of supply, we would be much more cautious about.

We will limit ourselves to the emerging markets like baltimore.

What has reemerged is las vegas.

It is doing very well, enjoying increased visitation.

It is the dynamic place it was before the crisis occurred.

There really isn't any place like it, so that is where we will focus our attention.

Vegas has become sort of a destination unto its own, with people not necessarily going to vegas just to gamble.

We have an awful lot of people who come to see us for reasons other than gaming.

They might enjoy a little bit of gaming, but their principal motivation to come to las vegas is the broader leisure experience.

They are therefore inventions, culinary experience, spall, some of the other things in the area.

I am there.

If you do want to gamble, you can do that online as well.

There are only three states in the united states that allow residents to gamble online.

Delaware, new jersey, and nevada.

Those businesses are in the early stages of development.

They are encouraging, but we need some of the bigger states to legalize gaming online, whether it is just poker or other forms of gaming.

We would like to see that in bigger states like california and texas.

Fix things are changing pretty rapidly and more states are starting to welcome this.

This text has been automatically generated. It may not be 100% accurate.


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