CAESARS to file for Bankruptcy in January

[Alan Mendelson]

From the Las Vegas Review Journal. Should we read between the lines about Total Rewards and how players will be treated?

http://www.casinocitytimes.com/artic...issue=12-22-14

Meanwhile, Caesars separate entities will be merging back together:

http://www.reviewjournal.com/busines...ge-shares-rise

Personally, I can't believe that the stock price will hold during a bankruptcy. And I won't believe that there won't be changes to the Total Rewards programs.

While Caesars doesn't want to cut off its customers -- which is why Total Rewards is unlikely to be crippled -- I am sure they will be cutting a lot of the "fat" away. Unfortunately many players expect that "fat" and that is why they chose to play at Caesars properties.

Knowing the bankruptcy is now a certainty, I don't think that I will be playing much at Total Rewards properties until:

1. terms of the bankruptcy are known in more detail
2. we see what the new Total Rewards program "looks like" starting April 1st.

[RoeIncarnate]

So here is a question for you 7 stars folk. What if you took all that play to mlife? What kinda rewards would they give you at your level. What comps would you be missing?

Just curious. I'm a cheap gambler and am lucky if I made the pearl level at mlife in a year.

Hope everyone had a merry Christmas.

[Alan Mendelson]

So here is a question for you 7 stars folk. What if you took all that play to mlife? What kinda rewards would they give you at your level. What comps would you be missing?

Just curious.

Good questions. I never made a comparison of the programs. I personally don't want to stay at any of the MGM properties in Vegas.

[Dan Druff]

I am not sure if MLife versus Total Rewards has been discussed yet. I will start a separate thread about it shortly.

[Alan Mendelson]

I will be going to Caesars for New Year's Eve. I have no need to play for "comps" and I have a folio credit plus enough RCs in my account to have a great time without gambling at Caesars. I wonder if this might be my weekend to play elsewhere -- perhaps at Wynn?

There is no sense in adding tier score or RCs for 2014 at this point. And on New Year's Day why risk the play at Caesars when tier points and RCs might be wiped out by a bankruptcy filing mid-January?

[Dan Druff]

I will be going to Caesars for New Year's Eve. I have no need to play for "comps" and I have a folio credit plus enough RCs in my account to have a great time without gambling at Caesars. I wonder if this might be my weekend to play elsewhere -- perhaps at Wynn?

There is no sense in adding tier score or RCs for 2014 at this point. And on New Year's Day why risk the play at Caesars when tier points and RCs might be wiped out by a bankruptcy filing mid-January?

I think the real risk isn't seeing tier credits or RCs wiped out, but a major degradation of the Seven Stars benefits, such as making it more like Mlife.

[Alan Mendelson]

Dan, I agree about benefits being cut. I am in the office talking to my son and I said to him "what if they raise 7 Stars to 500,000 tier points? Or, what if they do away with the annual gift or lower the value of the annual dinner to $250, do you still want to play there?"

Is it prudent to not play until the dust settles?

[Dan Druff]

Dan, I agree about benefits being cut. I am in the office talking to my son and I said to him "what if they raise 7 Stars to 500,000 tier points? Or, what if they do away with the annual gift or lower the value of the annual dinner to $250, do you still want to play there?"

Is it prudent to not play until the dust settles?

I'm not sure. I am really hoping they release this info sometime well before April 1.

Have you asked your host if she knows anything about this?

[Alan Mendelson]

Dan I am sure that except for the board of directors, executive management and lawyers NO ONE knows anything.

[Alan Mendelson]

Got a phone call this morning about what Caesars management is telling the hosts:

The Bankruptcy will not have an effect on players and the Total Rewards program. Comps and points that have been earned will remain in effect without interruption. There will not be any change in tier score requirements caused by the bankruptcy -- HOWEVER if there are changes it will not be caused by the bankruptcy.

There might be changes in the 7 Stars Signature events and 7 Stars benefits but again these will not be because of the bankruptcy but because there are changes made every year.

Hosts are being told to reassure their TR members that the bankruptcy will not have any impact on players, the TR program or what they have come to expect.

Hosts have had discussions with management about their players being concerned about play, benefits, etc. which is why management sent out a detailed memo to hosts. These concerns will not show up in the pre-packaged bankruptcy filing.

My own personal thought: I am sure that management will want to put a shine on whatever is going to happen in the bankruptcy. It appears from the statement that there won't be any wholesale or dramatic changes to Total Rewards or to the programs and benefits that we are now familiar with, but I think it would be naive to think that the program and benefits will continue without any changes whatsoever.

If there are going to be any wholesale or dramatic changes we won't have to wait till April 1st to see them as they would be immediate as soon as the bankruptcy papers are filed.

[regnis]

We are all overlooking the fact that Caesars can actually be more generous with the rewards program as well as other things of which we have all been complaining, as they will have reduced
their debt requirements substantially.

Seems to me that would be the prudent business tactic--so I guess it won't happen.