Dan Gilbert Looking To Cash Out Of Casinos: ReportMove Would Come Despite Sports Betting Legalization |
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Rust Belt billionaire Dan Gilbert is looking to make an exit from the casino gambling industry, per a report from Crain’s Detroit Business. Gilbert, who also owns the NBA’s Cleveland Cavaliers, has Las Vegas-style casinos in Detroit, Cleveland and Cincinnati.
Gilbert was once a partner with Caesars Entertainment Corp. for the Ohio casinos, but he ended up taking full control of the casinos several years ago and re-branded them as “JACK Casinos.” Caesars reportedly could be interested in acquiring the casinos it once had a stake in. Gilbert also owns the Greektown Casino-Hotel in Detroit. He also has racetrack interests.
His exit would come at a time when his Las Vegas-style casinos are under-performing relative to the competition. In terms of gaming win, Greektown is last among Detroit’s casinos, while his casinos in Cleveland and Cincinnati are the worst performing of their kind in Ohio.
The Hollywood Casinos in Columbus and Toledo generate more gaming revenue.
Gilbert is looking to divest, at least partially, at a time there’s a lot of upside for the industry due to recent Supreme Court sports betting ruling. Michigan and Ohio have yet to legalize sports betting, but both have already flirted with the idea.
So far, only four states have launched sports betting since the SCOTUS ruling. On a national basis, the sports betting market could hit $6 billion by 2023, assuming more than 30 states have implemented the industry by then. Offshore betting is currently a multi-billion-dollar market and online bookies stand to lose some U.S. facing business to regulated sports betting in the years ahead. Pennsylvania and Rhode Island are expected to join the fray this year.
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