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Caesars Entertainment Announces Closure of Showboat Atlantic City

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Posted: Friday, June 27, 2014 9:30 am





Caesars Entertainment Announces Closure of Showboat Atlantic City

LAS VEGAS, June 27, 2014 /PRNewswire/ -- Caesars Entertainment

Corporation (NASDAQ: CZR) today announced it will close Showboat

Atlantic City effective August 31, 2014. The difficult decision to

close the property follows persistent declines in business levels in

the area exacerbated by the high property-tax burden in Atlantic City.

"While we regret the impact that this decision will have on our

Showboat associates, we believe this is a necessary step to help

stabilize our business in Atlantic City and support the viability of

our remaining operations in the vicinity," said Gary Loveman, chairman

and chief executive officer of Caesars Entertainment. "Since 2006,

revenue in Atlantic City has declined by more than $3 billion and

competition in the city has increased. The dynamic in Atlantic City

has led us to the difficult but necessary decision to close Showboat

in an effort to help stabilize our business there and support the

viability of our remaining operations in the vicinity. We sincerely

appreciate the service, dedication and professionalism shown by the

employees of the Showboat over the years to provide our customers with

incredible experiences."

Caesars Entertainment is offering assistance to Showboat employees

displaced by this decision, including providing preference for

available positions at the three remaining Caesars-affiliated Atlantic

City properties as well as sister properties in the region and across

the enterprise and other transitional resources.

Caesars remains the largest operator in Atlantic City and will

continue efforts already underway to help revitalize and transform the

area. Caesars is developing a new, state-of-the- art meetings facility

adjacent to Harrah's Atlantic City and is pursuing other opportunities

to stimulate new visitation and growth, including recently overhauling

the gaming floor at Bally's and investing in new dining options

throughout the company's Atlantic City footprint. The company has not

yet determined what will become of the property and land. It intends

to collaborate with city and state officials as it evaluates

alternative uses.

Showboat will remain fully operational until its closure and will

honor all room reservations and events until that time. Customers with

reservations after August 31, 2014 will receive assistance in finding

alternate accommodations.

Caesars Entertainment acquired Showboat Atlantic City by purchasing

Showboat Inc., in June 1998.

About Caesars Entertainment:

Caesars is the world's most geographically diversified

casino-entertainment company. Since its beginning in Reno, Nevada,

more than 75 years ago, Caesars has grown through development of new

resorts, expansions and acquisitions, and now operates casinos on

three continents. The company's resorts operate primarily under the

Caesars@, Harrah's@ and Horseshoe@ brand names. Caesars 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.

Forward-Looking Statements

This release contains or may contain "forward-looking statements"

intended to qualify for the safe harbor from liability established by

the Private Securities Litigation Reform Act of 1995. These statements

can be identified by the fact that they do not relate strictly to

historical or current facts. Caesars has based these forward-looking

statements on its current expectations about future events. Further,

statements that include words such as "may," "will," "project,"

"might," "expect," "believe," "anticipate," "intend," "could,"

"would," "estimate," "continue," "present," "preserve," or "pursue,"

or the negative of these words or other words or expressions of

similar meaning may identify forward-looking statements. These

forward-looking statements are found at various places throughout this

release. These forward-looking statements, including, without

limitation, those relating to future actions, new projects,

strategies, future performance, the outcome of contingencies such as

legal proceedings, and future financial results, wherever they occur

in this release, are necessarily estimates reflecting the best

judgment of Caesars' management and involve a number of risks and

uncertainties that could cause actual results to differ materially

from those suggested by the forward-looking statements.

Important factors that could cause actual results to differ materially

from estimates or projections contained in the forward-looking

statements include without limitation:

-- access to available and reasonable financing on a timely basis,

including the new incremental term loan CEOC is seeking under its

credit agreement (and related repayment of 2015 maturities) and

amendment to CEOC's credit agreement and related Caesars guarantee of

CEOC's credit agreement, which may not be consummated on the terms

contemplated or at all;

-- the assertion and outcome of litigation or other claims that may be

brought against Caesars by creditors of CEOC, some of whom have

notified Caesars of their objection to various transactions undertaken

by Caesars and its subsidiaries in 2013 and 2014;

-- the impact of Caesars' substantial indebtedness and the

restrictions in Caesars' debt agreements;

-- the effects of local and national economic, credit and capital

market conditions on the economy in general, and on the gaming

industry in particular;

-- the ability to realize the expense reductions from cost savings

programs, including the program to increase Caesars' working capital

and excess cash by $500 million;

-- the ability of Caesars' customer-tracking, customer loyalty and

yield-management programs to continue to increase customer loyalty and

same-store or hotel sales;

-- changes in laws, including increased tax rates, smoking bans,

regulations or accounting standards, third-party relations and

approvals, and decisions, disciplines and fines of courts, regulators

and governmental bodies;

-- the ability to recoup costs of capital investments through higher


-- abnormal gaming holds ("gaming hold" is the amount of money that is

retained by the casino from wagers by customers);

-- the effects of competition, including locations of competitors,

competition for new licenses and operating and market competition;

-- the ability to timely and cost-effectively integrate companies that

Caesars acquires into its operations;

-- the potential difficulties in employee retention and recruitment as

a result of Caesars' substantial indebtedness, the ongoing downturn in

the U.S. regional gaming industry, or any other factor;

-- construction factors, including delays, increased costs of labor

and materials, availability of labor and materials, zoning issues,

environmental restrictions, soil and water conditions, weather and

other hazards, site access matters and building permit issues;

-- severe weather conditions or natural disasters, including losses

therefrom, including losses in revenues and damage to property, and

the impact of severe weather conditions on Caesars' ability to attract

customers to certain of its facilities, such as the amount of losses

and disruption to us as a result of Hurricane Sandy in late October


-- litigation outcomes and judicial and governmental body actions,

including gaming legislative action, referenda, regulatory

disciplinary actions and fines and taxation;

-- acts of war or terrorist incidents or uprisings, including losses

therefrom, including losses in revenues and damage to property;

-- the effects of environmental and structural building conditions

relating to Caesars' properties;

-- access to insurance on reasonable terms for Caesars' assets; and

-- the impact, if any, of unfunded pension benefits under

multi-employer pension plans.

These forward-looking statements should, therefore, be considered in

light of various important factors set forth above and from time to

time in Caesars' filings with the SEC. You are cautioned not to place

undue reliance on these forward-looking statements, which speak only

as of the date of this release. Caesars undertakes no obligation to

publicly update or release any revisions to these forward-looking

statements to reflect events or circumstances after the date of this

release or to reflect the occurrence of unanticipated events, except

as required by law.

Logo - http://photos.prnewswire.com/prnh/20120607/LA21221LOGO

SOURCE Caesars Entertainment Corporation

-0- 06/27/2014

/CONTACT: Gary Thompson - Media, Caesars Entertainment, (702) 407-6529, Jennifer Chen - Investors, Caesars Entertainment, (702) 407-6407

/Photo: http://photos.prnewswire.com/prnh/20120607/LA21221LOGO


CO: Caesars Entertainment Corporation

ST: Nevada New Jersey



-- LA58861 --

0000 06/27/2014 13:30:00 EDT http://www.prnewswire.com

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