James Packer Prepared to Cut Losses and Sell Cannery Casino Resorts to Boyd Gaming

James Packer Prepared to Cut Losses and Sell Cannery Casino Resorts to Boyd Gaming.

Costfoto / NurPhoto / Getty Images

Key Takeaways

James Packer Mariah Carey CanneryBillionaire James Packer is thrilled to be engaged to Mariah Carey for more reasons than just love, as many believe his forthcoming Alon Las Vegas casino resort will land Carey s next residency show. (Image: WireImage/New York Post)

Billionaire James Packer is reportedly readying his Crown Resorts Limited gaming and entertainment company to take a sizable loss and sell Cannery Casino Resorts.

Packer purchased Cannery and its three owned and one managed property in 2009 for $370 million along with a $50 million termination fee stemming from an earlier accepted proposal Crown later annulled.

The effective price tag of $420 million for Las Vegas Cannery Casino and Eastside Cannery, and the Meadows Racetrack and Casino in Pittsburgh, Pennsylvania, is now expected to be sold to Boyd Gaming at a discounted price somewhere between $225 and $240 million.

Though both parties are staying quiet on the potential deal, sources tell Reuters that the sale should be executed in the coming weeks.

Packer Busts

James Packer might have found his fiancé while attending a movie premiere in Aspen, Colorado, but the businessman whose net worth is estimated to be around $3.5 billion hasn t found much else to celebrate in the United States.

In Las Vegas, Packer s investments have been one bust after another, and unfortunately for him, when it comes to business, what happens in Vegas doesn t stay in Vegas.

His most notable failure in Sin City was the Fontainebleau Las Vegas, a still unfinished $2.9 billion casino and resort near the north end of the Strip. Packer s company invested $250 million into the development, but after the Great Recession fell on companies around the world and other financiers withdrew their stakes in Fontainebleau, the project was shelved and filed for bankruptcy.

Packer s quarter of a billion dollars was gone.

Packer Not Packing

You might think Packer s Las Vegas shortcomings would be more than enough reason to send the billionaire packing back to Australia, but instead he s re-buying into the game.

After months of speculation and financing concerns, construction is anticipated to commence in the coming weeks on the . Situated on land that hosted the New Frontier for 65 years until it was demolished in 2007, Alon had suffered a series of fiscal setbacks since Crown acquired the 35-acre property in 2014.

But now it appears the project is in full green light mode, and Packer s seven-year Vegas experience losing millions in the region hasn t created a hangover-type headache severe enough for the businessman to call it quits.

This time around he has a not-so-secret weapon.

The first three legs of Mariah Carey s Las Vegas residency show at Caesar s Palace has grossed $14.4 million over just 26 total shows. Her performances restart on June 7 and run through the final contracted show on June 11.

Afterwards, Carey will once again be a free agent in Las Vegas, and smart money will be on Packer to land the superstar for Alon.

Residencies have been a staple of Las Vegas entertainment for decades, and today making sure consistent traffic is coming through the casino doors, especially during slow months and weekdays, is vital to keep up with competition. Few names in music are bigger than Mariah Carey, an artist whose career has spanned over two decades and sold over 200 million records worldwide.

It appears as if Packer finally has the upper hand in Vegas.

Article Sources
Ex-UFC Fighter Chael Sonnen Reaches Plea Deal on Las Vegas Hotel Assaults editorial policy.
  1. Massachusetts Sports Betting, Third Resort Casino Omitted from Stimulus Bill

Compare Accounts
×
Queens Councilman Moya Supports Cohen Casino Plan, But Ramos Still Holding Out
Provider
Name
Description
Canada’s Single-event Sports Betting Bill Debated in Parliament This Week  Vaccine Lotteries Don’t Work, Study Says  Senate Passes Net Neutrality Measure, as More States Consider Online Gaming and Sports Betting Laws  After Santa Anita’s Latest Death, Stronach Group Bans Hall of Fame Trainer Hollendorfer from All Its Tracks  888 Holdings Revises William Hill Pact with Caesars, Looks for More Funds  Texas Casino Cruise Asks Social Media Followers if Company Should Fire Captain Who Struck Jetty  Hunt for Missing Bomb Linked to Maltese Casino Tycoon on Trial for Journalist’s Murder  Federal Sports Betting Ban Marks 25th Anniversary, Gaming Industry Says Law’s Days Are Numbered  Penn National Lands Another $100 Forecast, But Analyst Has Questions About New York  The Shuttered Las Vegas Pub that Inspired The Killers’ Most Popular Song