What would a Caesars bankruptcy mean for casino players? Should we be running to cash in rewards credits before the likely January filing?
A:
If you’re concerned about Total Rewards going away completely, in light of recent moves and the experts’ interpretation thereof (see Today’s News 10/17/14), don’t be.
"I don’t think anything would change," says Fitch Ratings analyst Alex Bumazhny, who’s normally bearish on Caesars Entertainment. "Total Rewards is licensed in perpetuity," its ownership shared between several Caesars Entertainment subsidiaries. Admittedly, it is part of the weakest one, Caesars Entertainment Operating Co., which owns Caesars Palace on the Strip and by far the likeliest entity to go bankrupty. But it also is part of the healthier Caesars Entertainment Resort Properties (Harrah’s Las Vegas, Paris-Las Vegas, The Rio, Flamingo Las Vegas) and Caesars Growth Partners (Bally’s, Cromwell, The Quad/LINQ).

"Ownership of the casinos may change but likely they’ll stay within Total Rewards as Caesars Entertainment Operating Co. goes through with its reorganization," Bumazhny opines.

Buzahmy’s sanguine view is shared by Raving Consulting marketing veteran Dennis Conrad, who writes, "my take would be that a bankruptcy would be a non-issue for casino players. Now if there were a risk of closure of Caesars casinos, that would be a different story. But Caesars can’t afford to screw around with the goodwill of their core asset, their casino players."

Just to be sure, we ran your query by Caesars Entertainment spokesman Gary Thompson, who wrote, "We do not anticipate our guests will experience any changes in our Total Rewards program or any reduction of earned Total Rewards."

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