Caesars Entertainment continues to examine the White home debt management strategies, it would appear; namely, when you can not pay your debt off, acquire more, move things around on paper like a shell game, and appear to be you are taking action by filing a near-Obamacare sized document with the Securities and Exchange Commission (SEC).

The organization just filed an enormous treatise that is 900-page the SEC, outlining how their financial obligation restructuring would occur, in case some of you’ve got a long flight and need help falling asleep on board.

Restructured, But Not Out of Financial Obligation

The key term here is ‘restructuring,’ because nothing into the SEC filing actually suggests any substantial moves towards immediate paydown of the industry-high accrued long-term debt of $23.5 billion. Simply to put that in perspective, that amount is higher than what Detroit owes the American town that this summer took the honor to become the largest U.S. municipality to ever file for Chapter 9 bankruptcy security over its $18 billion in debts.

And like Detroit, Wall Street doesn’t have much positive to say about the direction Caesars is using, even though, like its namesake, the company keeps expanding and extending its rule to all corners of the planet. A year ago, despite bringing in some $8.6 billion in profits, they finished 2012 with a net loss in $1.5 billion. Sufficient reason for more than 50 casinos in 13 U.S. states with numerous of those properties still getting right back on their feet because they push out of the dark hole of the recession there’s a great deal at risk here; Moody’s Investor Service a globally recognized company which provides credit ratings and research covering financial obligation instruments and securities has termed the Caesars’ debt load as ‘unsustainable.’

New Projects Coming On, Both Gaming and Non-Gaming

And even though the company’s Deputy General Counsel Michael Cohen told the Nevada Gaming Control Board at the summit that Caesars debt which is $10 billion more than competitor MGM Resorts International was ‘manageable,’ he did acquiesce that ‘others disagree’ july. And debt that is new company has become dealing with will go towards funding both its $550 million Linq development in the Las Vegas Strip a 300,000-square-foot al fresco development that’s to consist of brand new entertainment, dining and shopping outlets, plus a 550-foot-high observation wheel- and a brand new 668-room tower add-on at their flagship Las Vegas Strip Caesars Palace property.

One planned partnership for Caesars just fell off their docket last week, and that was a minority stake with Suffolk Downs Race Track near Boston for a much-vied-for casino license in Massachusetts. From then on state’s Gaming Commission uncovered some alleged unsavory ties with now-removed partner Gansevoort involving some six-degrees-of-separation with the Russian Mob, Caesars decided the insanely nosey Commission’s reviews were a little too ridiculous for their taste, and just withdrew from that project entirely. And while they have now removed Gansevoort from their upcoming new boutique hotel where the former Bill’s Gamblin’ Hall once stood regarding the Las Vegas Strip, the $185-million task itself will stay under a new, as-yet-unselected hotel-casino name.

The company’s Interactive gaming division and its under-construction Baltimore Horseshoe into a new publicly traded holding company, Caesars Acquisition Co., of which the Entertainment division will continue to own 57 percent, while holding a buy-back option for the other 43 percent in three years in essence, the restructuring plan is this: Caesars Entertainment raised $1.18 billion by moving ownership of Las Vegas Strip property Planet Hollywood. Stockholders had been offered the ability if you can call it that to get one share in the Acquisition brand for each share of the Entertainment brand name they held. Obviously, there is no need to be Einstein to even see that if every cent of that raised money had been going towards debt paydown, it wouldn’t begin to cover even 1/10th of exactly what’s owed.

However, most of that money will get towards building and development expenses for the business’s new U.S. casinos, aswell as its burgeoning WSOP online brand, which is already ready to go in Nevada, and will also be come November 26th in New Jersey, when that state launches its online casinos legitimately.

To be reasonable, not every analyst sees Rome burning here (we leave few simple metaphors unturned in these situs). For example, Eilers Research gaming analyst Adam Krejcik told investors that ‘while the deal structure (and) regards to the rights offering are complex, and concerns about Caesars’ money structure will probably persist, we believe the near-term bias for Caesars equity investors is to the upside given the chance to have (the holding company) at an extremely attractive valuation.’

Krejcik views the payback coming via social media and mobile casinos games which are offered via Playtika and Buffalo Studios, two subsidiaries of Caesars. Having said that, the 2012 total interactive revenues for these groups was just $193.3 million, which is a long, long way from $23 billion. And even with quotes of these two divisions being projected at $283 million for 2013 (social gaming players pay small costs to make their virtual stacks grow), we are reminded of the famous saying oft-attributed to circus mastermind P.T. Barnum:’There’s a sucker born every minute.’