Overview
Caesars Entertainment, Inc. is one of the world’s leading gaming companies. With $4.2 billion in annual net revenue, 27 properties in five countries on four continents, 26,000 hotel rooms, two million square feet of casino space and 50,000 employees, the Caesars portfolio is unequaled in the industry. The company has its corporate headquarters in Las Vegas, Nevada, where it operates Caesars Palace and three other major casino resorts.
Caesars Entertainment adopted its new corporate name in January 2004, but the company traces its roots back more than 50 years. The new Caesars Entertainment represents the union of four legendary gaming organizations — Caesars World, Hilton gaming, Bally's and Grand Casinos. Formerly known as Park Place Entertainment Corporation, the company's stock trades on the New York Stock Exchange under the ticker symbol (NYSE:CZR).
Caesars brands are among the most respected and best recognized in the world: Caesars, Paris, Bally’s, Flamingo, Hilton and Grand Casinos. Each Caesars Entertainment property creates a unique experience for its guests, from the Roman glory of Caesars Palace to the Old World romance of Paris Las Vegas, to the Southern charm of the Grand Casino resorts to the beach party excitement of The Flamingo.
In addition to world-class casinos, Caesars resorts feature more than 170 distinctive restaurants and cafes; 70 exciting theaters, showrooms and amphitheaters; 18 luxurious spas; five championship golf courses, a best-in-class sports shooting range, easy access to skiing, boating, deep sea fishing and other outdoor adventures – and the most alluring shopping destinations in the world.
Caesars resorts surround their guests with entertainment – live performances by the world’s most popular recording artists and comedians, championship boxing, celebrity golf and world-class tennis – as well as exquisite dining, elegant shopping, pampering spas, challenging golf and the most exciting gaming tables and slot floors in the world.
Caesars Palace in Las Vegas in 2003 opened The Colosseum, a 4,100-seat state-of-the-art theater that has become one of North America's premier venues for top tier talent. Home to "A New Day…." starring Celine Dion, which already has sold out more than 150 performances, The Colosseum also has hosted appearances by Jerry Seinfeld, Gloria Estefan and other top-name entertainers. Sir Elton John debuted a new stage show, "The Red Piano," at The Colosseum in February 2004 and will perform at least 25 times a year for the next three years.
In addition to its 17 domestic properties, Caesars operates 8 international casino resorts. As the United States’ leading operator of international casinos, Caesars is uniquely qualified and experienced in owning and operating casino resorts in cooperation with local partners around the globe.
No other operator in the U.S. gaming industry has so consistently demonstrated its cultural sensitivity, adaptability and expertise in working with different management ownership structures. And no other gaming company has as strong a track record in producing profits and tax revenue within unique ownership structures.
Management Team
Managing the Caesars Entertainment portfolio is a team of seasoned executives who are recognized leaders in the travel, resort, hospitality, entertainment and gaming industries. Together, the senior management team has more than a century of experience in the gaming and hospitality industries.
- President and Chief Executive Officer Wallace R. Barr is one the most influential executives in the industry. A 25-year gaming veteran with extensive operating and finance experience in Las Vegas, Atlantic City and international casino markets, Barr previously served as the company’s chief operating officer. A former president of the Casino Association of New Jersey, Barr serves on the boards of many civic and philanthropic organizations. He was the recipient of the 2003 Employer of the Year Award given by the Nevada AFL-CIO.
- Executive Vice President and General Counsel Bernard E. DeLury, Jr., a 14-year gaming veteran, heads the company’s legal team and also is responsible for governmental affairs, security, regulatory and compliance functions. He is admitted to practice before the United States Supreme Court, the United States Court of Appeals for the Armed Forces and the United States Court of Appeals for the Third District. He is a past chairman of the New Jersey State Bar Association’s Casino Law Section, an officer of the International Association of Gaming Attorneys and a member of the board of directors of the Atlantic City Convention Center and Visitors Authority.
- Executive Vice President of Human Resources for the Western and Mid-South Regions Steven F. Bell is responsible for recruitment, training, organizational development, benefits and compensation. A veteran human resources executive with extensive experience in the telecommunication and financial services industries, Bell also leads the company’s community relations, diversity and corporate philanthropy initiatives.
- Senior Vice President and acting Chief Financial Officer Wesley D. Allison is responsible for corporate finance, tax, treasury, accounting, internal audit, insurance, investor relations and the company’s long-term financial strategy. Before joining Caesars, Allison served as corporate controller for Las Vegas-based Station Casinos, where he directly supervised financial matters involved in opening new properties. Allison began his professional career in 1985, as a staff auditor with the public accounting firm of Arthur Andersen.
- Senior Vice President for the Western and Mid-South Regions Anthony F. Santo has overall responsibility for a dozen properties in Nevada, Indiana, Mississippi and Louisiana. A 22-year veteran of the gaming industry, Santo previously has served as president of Paris Las Vegas, Bally’s Las Vegas, the Flamingo Las Vegas, the Reno Hilton and the Flamingo Hilton Reno. He also is a member of the board of directors of the Las Vegas Convention and Visitors Authority, the agency responsible for the international promotion of Las Vegas as a travel and tourism destination.
Caesars Entertainment customers are served by a dedicated and highly trained team of associates – 52,000-strong. Their expertise and dedication are the foundation of the company’s success.
Growth Strategy
Since becoming president and CEO in November 2002, Barr has focused the company on these principal strategic objectives:
Building dominant market share in major gaming markets – including Las Vegas (#2 in market share); Atlantic City (#1 in market share); Tunica, Mississippi (#1 market share); Mississippi Gulf Coast (#1 market share).
Creating unique new attractions for guests to drive non-gaming revenue while continuing to grow the gaming franchise. Projects initiated or completed in 2003 and 2004 include: The Colosseum at Caesars Palace, The Roman Plaza at Caesars Palace, The Pier at Caesars Atlantic City, The Gateway at Bally’s Atlantic City and new restaurants, nightclubs, high-end slot lounges and other amenities in both Las Vegas and Atlantic City.
Using technology to lower costs and develop closer relationships with customers. The company has launched the second phase of its Connection Card customer loyalty program, launched a major new Internet marketing initiative, introduced the Caesars Entertainment MasterCard and taken the lead in deploying “ticket-in, ticket-out” slot technology in its resorts across the country.
Improving operational efficiencies and reduce costs through carefully analyzing targeted expense categories at the company’s largest properties.
Exploring entry into new markets, both domestic and international, on an opportunistic basis.
New Markets
Seeking opportunities to grow its revenues in strategic new markets, the company has partnered with the Saint Regis Mohawk Tribe to develop and manage a casino resort in the Catskill Mountains in New York, approximately 90 minutes north of New York City. The project has been endorsed by local, county and state government officials and is awaiting approval by the U.S. Bureau of Indian Affairs, the National Indian Gaming Commission and the State of New York. The Tribe in October 2004 announced a major land claim settlement with the office of New York Governor George Pataki.
In 2004, the company also:
- Announced that it will make its first move into Europe through a partnership with Quintain Estates, a major British development company, to build and operate a luxury, Caesars-branded casino on 13 acres adjacent to the redeveloped Wembley National Stadium in London.
- Signed formal development and management agreements with the Big Sandy Band of Western Mono Indians to build a $250-million casino on tribal land near Fresno, California.
The company also is exploring opportunities in other domestic and international markets.
Technology
Technology and the Internet play a key role in Caesars’ strategy to grow its business and build stronger relationships with its customers.
In late 2002, the company launched all-new web sites for its domestic casino resorts. The new sites are designed to make it easer than ever for guests to reserve their hotel rooms over the Internet and access detailed information about the latest attractions, events and amenities at Caesars casino resorts.
By tracking customers’ choices and preferences and storing that information in the company’s growing data warehouse, Caesars expects to drive faster growth in online reservations and build better and longer lasting relationships with its customers.
The development of sophisticated software programs and advanced digital storage facilities has created a new world in which it is possible for a major casino company to keep track of millions of customers, their preferences, their play at the tables and on the slots, and their spending – not only in the casino, but in the hotel, restaurants, cafes, bars, clubs and retail outlets.
The Caesars data warehouse accommodates more than six trillion bytes of data on a single IBM iSeries platform housed in the company’s computer facility in Atlantic City.
Creation of the data warehouse has enabled Caesars to do a better job of developing new customers and marketing to existing customers, because the company can better identify individual preferences and create specially tailored offers and promotions. By using e-mail to deliver these offers, Caesars can respond more quickly to market conditions and significantly reduce the cost of customer acquisition and retention.
In another technology initiative, Caesars has partnered with Cox Business Services Hospitality Network to install digital video and audio connections and high-speed computer data ports in 26,000 U.S. hotel guest rooms. Cox will invest approximately $30 million to upgrade cabling and in-room television systems and will share in the profits from the new on-demand music and video services and high-speed Internet access.
Connection Card
The Connection Card program rewards loyal guests with complimentary hotel, restaurant, entertainment and retail privileges at the company’s 17 domestic casino resorts. Often compared to frequent flyer plans, the Connection Card program offers participants a bank of “Connection comp dollars” that can be used as cash to pay for meals, shows, hotel accommodations and other resort amenities.
“Connection Comp” dollars are calculated not only on slot machine and table game play, but also on hotel cash folio accounts - the amount hotel guests pay in cash or by credit card for their room rate, meals charged to their room and other resort amenities.
The first large gaming company to reward hotel folio charges in its loyalty program, Caesars Entertainment continues to develop the Connection Card program; building on inherent strengths derived from its geographic and brand diversity. In addition to “comp dollars” the Connection Card program also features cash-back slot bonuses redeemable at the Las Vegas properties. Some program rules and features may vary by market.
Responsible Gaming
Caesars Entertainment in 2004 began rolling out one of the casino resort industry’s most aggressive programs to promote responsible gaming.
“We value our guests and want them to enjoy their gaming experience in a responsible way,” says President and CEO Wallace R. Barr. “For that reason, it’s important that we join with our employees, our communities and health professionals to understand and assist individuals who suffer from gambling disorders.”
Under the new program, the company has created a “one-stop” system to bar any of the company’s domestic casino resorts from marketing, mailing, extending credit, cashing checks or awarding complimentary services through player loyalty programs to anyone who has registered with a state or individual Caesars Entertainment casino self-exclusion program. Once instituted, the company-wide ban will extend for life, with limited opportunities for appeal or exception, subject to regulatory requirements.
In addition, the company has hired a Responsible Gaming Manager who will work with the company’s legal department to involuntarily place individuals on the Responsible Gaming List, based on reports of specific behavior associated with problem gaming filed by casino employees. These reports are to be known as Responsible Gaming Alerts. Examples of behavior that might prompt a Responsible Gaming Alert are conversations with a casino employee about significant financial losses, depression or thoughts of suicide.
Company-wide employee training on the new Responsible Gaming Program is mandatory for all property officers and directors, casino floor supervisors, cashiers and members of the marketing, credit, audit, security and surveillance departments.
The new program is intended to complement the company’s existing “We Care” project, which educates customers and casino employees on the importance of responsible gaming and provides contact information for those seeking help.
Under the framework of the program, Caesars Entertainment is set to put in place a standardized responsible gaming policy that will be universal at all properties.
In addition to creating its own Responsible Gaming Program, the company strongly supports industry-wide programs and initiatives adopted by the American Gaming Association, including the new AGA Code of Conduct for Responsible Gaming.
Caesars Entertainment, along with several other large U.S. gaming companies, also is a major sponsor of the National Center for Responsible Gaming, based at Harvard University in Boston, Massachusetts.
The National Center was founded in 1996 as the first national organization devoted exclusively to funding independent, peer-reviewed scientific research on pathological and youth gambling. Its mission is to help individuals and families affected by gambling disorders by supporting the finest peer-reviewed research; encouraging the application of new research findings to improve prevention, diagnostic, intervention and treatment strategies; and enhancing public awareness.
The NCRG is governed by a volunteer board of directors, which includes a Caesars Entertainment executive. The board, whose primary responsibility is fund raising, is balanced between representatives of the gaming industry and leaders from government, academia, health care, education and other non-gaming fields.
With the contributions of the casino gaming industry, equipment manufacturers, vendors, related organizations and individuals, more than $7 million has been committed to the NCRG, an unprecedented level of funding for gambling research. This financial support has enabled the NCRG to attract the best minds from the most prestigious institutions to conduct research in this uncharted field.
Caesars also promotes the responsible gaming programs of the American Gaming Association, the industry group organized in 1995. In 1997, the AGA created the Responsible Gaming National Education Campaign, an industry wide umbrella program focused on educating the public and casino employees about responsible gaming.
As part of that program, the AGA has created numerous print materials on responsible gaming, including the Responsible Gaming Resource Guide, the PROGRESS Kit, and the association’s flagship responsible gaming brochure Keeping it Fun: A Guide to Responsible Gaming, among others.
The AGA also has developed public and employee education programs, including Responsible Gaming Education Week, held annually during the first week of August, and the Responsible Gaming Lecture Series, launched in 2001 to bring responsible gaming experts to gaming jurisdictions nationwide.
In 2001, the association recognized the company as the first member of its “Million Dollar Club,” established to recognize those companies that contribute $1 million or more to the National Center for Responsible Gaming (NCRG), which has funded groundbreaking research on problem gambling.
“While research shows the number of people who do not gamble responsibly is very small, the industry has long made it a priority to keep employees, customers and the general public informed about disordered and underage gambling,” says Flamingo Las Vegas President Lorenzo Creighton, a member of the Advisory Board of the Nevada Council on Problem Gambling.
Corporate Responsibility
As the acceptance of casino gambling as a legitimate form of entertainment has spread throughout the United States, members of communities in which casinos operate have made it clear that they expect a significant commitment from casino operators to assist the people and the civic organizations that make up those communities.
Caesars Entertainment recognizes that it is an invited guest in every community in which it has a casino resort. To fulfill its commitment to exemplary corporate citizenship, the company has established a charitable foundation to oversee its philanthropic and civic activities – The Caesars Foundation. In 2003, Caesars Entertainment, its U.S. casino resorts, and their affiliated foundations contributed nearly $20 million to civic and philanthropic causes across the United States.
Since the company inaugurated the Caesars Foundation nearly two years ago, its principal focus has been supporting community programs that empower the disadvantaged by offering education and training that impart long-term job skills and life skills.
Caesars Entertainment employs nearly 50,000 people throughout the United States. Because of turnover and promotions, the company always is looking for bright new talent. By standing behind community organizations that prepare disadvantaged local residents for the challenges and responsibilities of well-paying, skilled employment, the Caesars Foundation can make everyone a winner.
The company’s philanthropic initiatives are intended to reflect the specific needs and circumstances of each of its home markets. In Mississippi, Caesars properties created the “Adopt a Town” program, which provides job training, life skills training and job transportation to unemployed and under-employed people.
In New Jersey, Caesars has been a leader in working with local Atlantic City Boys and Girls Clubs to develop facilities and programs intended to help local youngsters stay in school and develop the skills they need to move into successful careers.
In Nevada, Caesars has supported several programs that develop job skills and enable the under-employed to move into higher-skilled employment. In addition, the Foundation has
donated hundreds of thousands of dollars to assist Nevada workers whose jobs were impacted by the decline in tourism caused by the September 11 terrorist attacks.
Caesars President and Chief Executive Officer Wallace R. Barr recently received the respected Civitas Laurel Award from the Foundation for an Independent Tomorrow, one of Las Vegas’ major charitable organizations, recognizing the company’s significant contribution to the community.
Diversity
Under the leadership of Barr, Caesars has made a strong commitment to increasing the diversity of its workforce, management team, customer base and vendor roster.
- In 2004, Caesars announced a new web-based program intended to help increase the participation of minority and women-owned vendors in Caesars purchasing activities. Barr also announced a goal of increasing the participation of minority and women-owned business in the company's purchasing to 20 percent.
- In 2003, minority and women-owned businesses accounted for approximately $90 million, or 15 percent, of the company's total annual purchasing of $600 million.
- Barr said the company will continue its efforts to promote diversity throughout the rest of its operations.
- Five of the company's 17 domestic casino resorts - or more than 28 percent - are headed by a president or general manager who is a woman, African-American or Asian-American.
- More than 28 percent of the company's 4,557 managers are members of minority groups and more than 41 percent are women.
- About 51 percent of the company's 48,950 domestic employees are minority group members and about 50 percent are women.
- The company in the past year has committed more than $400,000 from its Caesars Entertainment Foundation and other corporate sources to programs specifically aimed at promoting education and economic development among minority groups and women.
- Recipients include: the Urban Chamber of Commerce, the Latin Chamber of Commerce, the United Negro College Fund, the University of Memphis (Tunica, Mississippi), 100 Black Men of Las Vegas, the Nevada Association of Latin Americans, Nevada Hispanic Services, the Women's Foundation of Greater Memphis and the Immigrant Workers Citizenship Project.
"We believe we have made important strides as we work to ensure that our management team, our employee base and our philanthropic commitments reflect the broadly diverse background of the nation as a whole and the communities in which we live and work," Barr said. "We are fully committed to continuing our efforts to meet these important goals."
Casino Resorts - The West
In Las Vegas, Nevada, the world’s largest casino market, the company has four destination resorts clustered at the bustling “Four Corners” intersection of Flamingo Road and Las Vegas Boulevard.
Caesars Palace is the most famous casino in the world and the flagship resort of the gaming industry’s most powerful brand.
Paris Las Vegas is the most evocative of the new Las Vegas mega-resorts, immediately recognizable for its 50-story Eiffel Tower, Arc de Triomphe entrance, sidewalk cafes and other landmarks inspired by the City of Light.
Bally’s, home of the city’s most glamorous showgirls, is where classic Las Vegas thrives in style.
The Flamingo, across the boulevard from Caesars Palace, is the ultimate party venue, a mecca for the city’s tour and travel business and home to a lush, five-acre tropical garden of tiered swimming pools, waterfalls and wildlife habitat.
Northern Nevada resorts are Caesars Tahoe and the Reno Hilton, surrounded by the towering Sierra Nevada mountains and minutes from 18 ski resorts and 30 golf courses.
In Southern Nevada, where the desert meets the Colorado River at the Arizona and California borders, is the Flamingo Laughlin, which offers the city’s finest accommodations.
Casino Resorts – The East
In Atlantic City, New Jersey, the second largest gaming market in the United States, Caesars Entertainment has three resort-casinos along the most famous boardwalk in the world.
Bally’s Atlantic City boasts the premium “Boardwalk at Park Place” address, immortalized in the game of Monopoly.Ô Bally’s is connected to and operates Caesars’ Wild Wild West Casino, Coyote Kate’s Slot Parlor and The Claridge Casino at Bally’s.
Adjoining Bally’s on the south is Caesars Atlantic City, renowned for its lavish guest accommodations and distinctive Roman décor, and home to the city’s premium casino customers. Joined by pedestrian connectors, the casino hub at the center of the Boardwalk makes it possible for guests to walk five city blocks, from Indiana to Missouri Avenues, without exiting the properties.
A short walk down the Boardwalk is the Atlantic City Hilton, a popular leisure and convention destination and the only Atlantic City casino that features its own beach.
Casino Resorts – The Mid-South
Tunica, Mississippi is the third-largest gaming destination in the United States, just minutes from downtown Memphis, Tennessee and the Memphis International Airport. Tunica is located at the crossroads of the Mid-South’s most popular attractions.
Caesars’ three Tunica properties are: Bally’s Casino Tunica, Sheraton Tunica and the 2,000-acre Grand Casino Tunica, which features three hotels, a championship golf course, a world-class spa, an expansive recreational vehicle park and one of the nation’s top sporting skeet and trap shooting facilities.
Along the Mississippi Gulf Coast, a popular resort getaway for the entire southeast, are Grand Casino Gulfport, with its Lazy River tropical pools and waterfall, and Grand Casino Biloxi, with two luxury hotel towers, a lavish spa, gulf-view pool and 13 diverse restaurants and cafes.
Both Gulf Coast resorts feature attractive meeting and convention facilities, popular deep sea fishing excursions aboard the Baby Grand 50-foot sport fishing yacht and access to play Grand Bear. A Jack Nicklaus signature golf course, Grand Bear is the Gulf’s finest golf destination.
In southern Indiana, across the Ohio River near Louisville, Kentucky, is Caesars Indiana. Caesars brings the glory of Rome to middle-America with a 500-room hotel, and a four-level, 93,000 square-foot casino distinct for its ornate columns, marble décor and seven themed gaming areas. Caesars Indiana is a destination resort offering eight restaurants, a shopping promenade, a 24,000-square-foot conference center, a 1,500-seat event and entertainment Colosseum and an 18-hole championship golf course, Chariot Run.
In Louisiana, Bally’s Casino New Orleans celebrates Mardi Gras year-round.
Casino Resorts – International
By any measure, Caesars is the United States’ leading operator of international casino resorts, uniquely qualified and experienced in owning and operating casino resorts in cooperation with local partners around the globe. No other operator in the U.S. gaming industry has so consistently demonstrated its cultural sensitivity, adaptability and expertise in working with different management ownership structures. And no other gaming company has as strong a track record in producing profits and tax revenue within unique ownership structures.
International destination resorts in which the company has an equity or management interest include Casino Windsor, located in Ontario, Canada (across the Detroit River from Michigan’s storied Motor City), Casino Nova Scotia Halifax and Casino Nova Scotia Sydney. The Nova Scotia resorts are located in the province’s historic maritime area.
Along the Gold Coast of Australia, occupying its own tropical island in the heart of a surfer’s paradise is the Conrad Jupiters, Gold Coast. Farther south, in the popular city of Brisbane, is the Conrad Treasury, distinctive for its stunning French Renaissance architecture.
In Uruguay, on picturesque Maldonado Bay, is Conrad Punta del Este. The resort’s operating parent, Baluma SA, is one of the country’s largest private employers.
The Caesars empire extends to South Africa at Caesars Gauteng, near Johannesburg, a joint venture with leading South African casino resort developer Global Resorts SA, and the South African black economic empowerment consortium Marang (East Rand) Gaming Investments.
The Caesars Palace brand travels around the world in three shipboard casinos named Caesars Palace at Sea, aboard the award-winning five-star luxury liners, Crystal Harmony, Crystal Symphony and Crystal Serenity, which are owned by Crystal Cruises, Inc.
March 2005
