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Casino Union Calls Caesars Bankruptcy REIT Plan Too Risky

  • Report says structure would make casinos vulnerable in slump
  • Union critique follows lawmakers’ protest over tax-free plan

Caesars Entertainment Corp.’s proposal to spin assets of its bankrupt operating unit into a real estate investment trust would create a deeply indebted business vulnerable to a downturn in the gambling industry, according to a casino workers’ union.

A Caesars REIT would be riskier than other big, publicly traded real estate trusts, Unite Here! said in a report released Tuesday, the same day the operating unit is due to update a Chicago bankruptcy judge on its reorganization. The union says it has long been opposed to casino REITs.