Caesars casino company inks non-gambling deal in Dubai

Caesars Entertainment launches new licensing strategy in partnership with a local developer.

New York Weekend Edition /
Apr.April 15, 2018 12:00 PM

From left: Sheikh Mohammed bin Rashid Al Maktoum, Mark Frissora. (Credit from left: World Economic Forum, Bernard Spragg, Caesars Entertainment)

Caesars Entertainment is playing a new game.

The casino company behind famous joints on the Las Vegas strip including, of course, Caesars Palace, is launching a new non-gambling venture — hopefully its first of many, according to the Wall Street Journal.

Caesars’ new hotels in Dubai, where gambling is illegal, will be done in partnership with local developer Meraas Holding, which is owned by Dubai’s royal family, the patriarch of which is Sheikh Mohammed bin Rashid Al Maktoum, the ruler of Dubai and the Vice President and Prime Minister of the United Arab Emirates. Together, the companies will develop and operate two branded Caesars resorts on a man-made island, which is part of Meraas’ broader $2.2 billion mixed-use project, Bluewaters.

The deal comes as gambling revenues are falling across the casino industry and on the heels of Caesars’ Chapter 11 bankruptcy proceedings, which wrapped up last fall. Going forward, the company is planning for licensing agreements comparable to the Meraas deal to account for up to 10 percent of its earnings.

“This is a good way for us to get into places that we haven’t been to,” Caesars’ chief executive Mark Frissora told the Journal. “The capital is paid out by someone else. They do the investment.”

MGM Resorts International is already making similar moves: the company is working on its own branded hotels in Dubai for opening in 2021 and already runs non-gambling operations in China. [WSJ]Erin Hudson


Related Articles

arrow_forward_ios
(iStock/Illustration by Kevin Rebong for The Real Deal)
NYC investment sales hit multi-year peak to end 2021
NYC investment sales hit multi-year peak to end 2021
Tax assessments rise 9%, signaling higher bills for landlords
Tax assessments rise 9%, signaling higher bills for landlords
Tax assessments rise 9%, signaling higher bills for landlords
From left: Ryan Johnson and Jeff Berens, co-founders of Culdesac, in front of a rendering of Culdesac Tempe (Culdesac, iStock)
Startup that wants to build car-free cities raises $30M Series A
Startup that wants to build car-free cities raises $30M Series A
From left: Stephen Schwarzman, chairman, Blackstone; Barry Sternlicht, chief executive officer, Starwood Capital Group (Getty Images, Brookfield Asset Management/Illustration by Steven Dilakian for The Real Deal)
Blackstone, Starwood to pay $1.5B for WoodSpring Suites properties
Blackstone, Starwood to pay $1.5B for WoodSpring Suites properties
Keith Powers, Democratic District 4 representative on the New York City Council, in front of 45 East 45th Street (Getty Images, The Roosevelt Hotel, iStock/Illustration by Steven Dilakian for The Real Deal)
Local lawmakers aim to landmark shuttered Roosevelt Hotel
Local lawmakers aim to landmark shuttered Roosevelt Hotel
Former WeWork CEO Adam Neumann (Getty Images, iStock, Yard 8 Miami, Stacks on Main, Trulia, Power Design Inc., Inkwell Decatur, Wikipedia, Illustration by Kevin Cifuentes for The Real Deal)
Depreciation Man: Adam Neumann’s real estate binge to ease tax bill
Depreciation Man: Adam Neumann’s real estate binge to ease tax bill
A photo illustration of 51-53 East 73rd St, 300 De Witt Ave, 137 Bayard Street and 3044 Coney Island Ave (LoopNet, Rosewood Realty Group/Illustration by Steven Dilakian for The Real Deal)
Ten mid-market investment sales to start your day
Ten mid-market investment sales to start your day
M&T CFO Darren King (The Org and iStock)
Real estate lender’s bleak outlook and earnings decline perplexes analysts
Real estate lender’s bleak outlook and earnings decline perplexes analysts
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...