Cleveland, Cincinnati Casinos to be Managed By Caesars Entertainment
Joint Venture Agreement Finalized between Rock Gaming and the World's Largest Gaming Company; Caesars to Hold Equity Stake in Projects
CLEVELAND and LAS VEGAS, Dec. 22, 2010 /PRNewswire/ -- Rock Gaming LLC, and Caesars Entertainment Corporation announced today that they have formed a joint venture to develop and operate casinos in downtown Cleveland and downtown Cincinnati. The new joint venture, Rock Ohio Caesars LLC, is majority owned by Rock Gaming. Rock Ohio Caesars has entered into long term management agreements with subsidiaries of Caesars for management and operation of each of the venture's facilities.
A general manager for each casino will be named in early 2011. Each manager will be responsible for ensuring the casinos operate under Caesars' world-class operating standards, provide good-paying jobs in the community and serve as good corporate neighbors.
Ohio voters approved full-service gaming, including the development of a casino in each of the state's four largest cities, in a November 2009 constitutional referendum.
"Rock and Caesars have been functioning as a very cohesive team since we agreed to work together earlier this year," said Matt Cullen, a Rock Gaming principal. "Their enthusiasm for the Cleveland and Cincinnati communities is evident, and their expertise in developing and operating first-class gaming establishments has been invaluable as we work to refine our plans for these projects."
"We are delighted to have the opportunity to deliver two new urban casinos for Ohio. These destination casinos will be a welcomed addition to our portfolio of 52 worldwide casinos," said John Payne, central division president. "Caesars Entertainment shares Rock Gaming's vision for these urban casinos that will create jobs, spur local economies and increase tax revenues throughout the State of Ohio."
Rock Ohio Caesars is expected to invest $600 million to develop the Cleveland casino, which will sit between the bank of the Cuyahoga River and Huron Road in the heart of the downtown entertainment district. The gaming operation is projected to attract eight million visits to downtown Cleveland annually, while adding another high-profile attraction to Cleveland's impressive sports, entertainment, music and cultural destinations. More than 8,000 direct and indirect construction and permanent jobs are expected to be created by the development and operation of the casino.
At the request of city and regional leadership, Rock Ohio Caesars is exploring the development of a Phase 1 casino plan in downtown Cleveland's historic Higbee building, which is in close vicinity to the new construction casino development. Should it be concluded that a Phase 1 casino is a viable under taking, the venture would expect a late 2011/early 2012 opening and the creation of up to 1,600 jobs in the initial phase. Rock Ohio Caesars expects to announce a decision relative to the Higbee project in the next 60 days.
The Cincinnati casino will be built on 20 acres of vacant property on the downtown's northeast side known as Broadway Commons. The estimated $400 million new development is expected to drive six million visits to downtown Cincinnati, while creating nearly 1,700 jobs at the casino. In all, approximately 4,700 direct and indirect construction and permanent jobs will be created by the development.
About Rock Gaming, LLC
Rock Gaming is a Midwest-based gaming partnership formed with an initial focus to develop first-class casinos in two of Ohio's largest cities, Cincinnati and Cleveland, as well as to explore other potential gaming opportunities. Dan Gilbert, a principal of Rock Gaming, is also chairman and founder of Quicken Loans, Inc., the country's largest online retail mortgage lender, as well as the majority owner of the NBA's Cleveland Cavaliers and the American Hockey League's (AHL) Lake Erie Monsters; both teams play at the Quicken Loans Arena in downtown Cleveland.
About Caesars Entertainment Corporation
Caesars Entertainment Corporation is the world's largest casino entertainment company. Since its beginning in Reno, Nevada, more than 70 years ago, Caesars has grown through development of new resorts, expansions and acquisitions, and now operates casinos on four continents. The company's resorts operate primarily under the Harrah's®, Caesars® and Horseshoe® brand names. Caesars also owns the World Series of Poker® and the London Clubs International family of casinos. Caesars Entertainment is focused on building loyalty and value with its guests through a unique combination of great service, excellent products, unsurpassed distribution, operational excellence and technology leadership. Caesars is committed to environmental sustainability and energy conservation and recognizes the importance of being a responsible steward of the environment. For more information, please visit www.caesars.com.
Forward Looking Statement
The statements in this release that refer to plans and expectations for future periods are forward-looking statements and are not guarantees of future performance and involve significant risks and uncertainties. The actual results may differ materially from those contained in or implied by the forward-looking statements as a result of various factors, some of which are unknown, including, without limitation: our ability to agree upon a mutually acceptable plan for development of the projects; our ability to obtain financing for development of the projects; changes in gaming legislation in Ohio; the adoption of final rules and regulations by the casino control commission and; favorable resolution of any legal challenges to gaming legislation and regulations; our ability to obtain necessary licensing to operate casinos in the State of Ohio; completion of all transactions necessary to secure rights to land on which the casinos will be developed; and economic conditions in general and in our specific market areas. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we can give no assurance that our plans, intentions or expectations will be achieved. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. We do not undertake any obligation to publicly release any revisions to any forward-looking statements contained herein to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.
SOURCE Rock Gaming LLC and Caesars Entertainment Corporation
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