Caesars Bankruptcy Risk Killed Its Bid for N.Y. Casino LicenseFreeman Klopott and Christopher Palmeri
The threat of bankruptcy by Caesars Entertainment Corp.’s main operating unit was a key reason the Las Vegas-based gambling company didn’t win a license to operate a casino in New York state.
The state panel that recommended license winners in December said in a report released Friday that bankruptcy may have been a distraction to Caesars management, damaged the reputation of gambling in New York and kept customers from visiting the company’s proposed $880 million resort-casino.
“The board was especially concerned about the bankruptcy risk,” according to the report.
A Caesars spokesman declined to comment.
Caesars proposed developing a casino about 50 miles (80 kilometers) north of New York City, which would have among the closest to the largest U.S. metropolis. The state is moving foward with three licenses, while opening up bids for a fourth in the region along the Pennsylvania border. None of the licenses will be in Orange County, where Caesars sought to build.
Caesars Entertainment Operating Co., the company’s largest division, filed for bankruptcy protection in January.