Caesars Entertainment, Inc.
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Formerly called
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Park Place Entertainment (1998–2003) |
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| Industry | Gaming |
| Fate | Acquired |
| Predecessor | |
| Successor | Harrah's Entertainment |
| Founded | 1998 |
| Defunct | 2005 |
| Headquarters | Paradise, Nevada, USA |
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Key people
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Wallace R Barr, CEO Harry Hagerty, CFO William Barron Hilton and Stephen F. Bollenbach, Co-Chairman |
Caesars Entertainment, Inc. was a Las Vegas Valley, Nevada based business that was the largest owner, operator and developer of casinos throughout the world. It was part of the Hilton Hotels chain and was spun off from Hilton as Park Place Entertainment in 1998, and renamed as Caesars Entertainment in 2003. The company was acquired in 2005 by Harrah's Entertainment, which later took on the Caesars Entertainment name.
Hilton's involvement in the gaming industry began in 1947, with its approval to operate what would be the Caribe Hilton Hotel and Casino in Puerto Rico. Other Caribbean casinos followed, including the Havana Hilton and El Panama Hilton. Hilton's international hotels were spun off as a separate company in 1964.
Hilton returned to gaming in 1970, buying a controlling interest in Kirk Kerkorian's International and Flamingo hotels in Las Vegas. Its casino holdings grew to ten properties over the years, accounting for more than half of the company's revenues.
Hilton unsuccessfully tried to sell itself in 1989, and again in 1995. The failures were partly attributed to gaming regulations that would make a purchase by a foreign company difficult, leading the company to consider a spinoff of its gaming operations.
By 1996, new CEO Stephen Bollenbach, a former gaming executive with the Trump Organization, had set a goal of becoming the biggest company in the gaming industry, discarding the idea of a spinoff. With growth in the number of gaming jurisdictions stalled, Bollenbach aimed to expand through acquisitions, especially in Atlantic City, where Hilton had no presence.Bally Entertainment, with five casinos, including two in Atlantic City, was a natural target. Its midscale clientele, heavy on slots revenue, would provide balance to the volatility of Hilton's high-end baccarat players. Hilton beat out ITT Corporation with an offer of $2 billion in stock plus $1 billion of assumed debt, and the purchase closed in December. Bally CEO Arthur Goldberg joined Hilton as president of gambling operations.
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