Caesars Entertainment on stock exchange
Caesars Entertainment

After many attempts at selling its shares to the public, Caesars Entertainment floats its shares at the Initial Public Offering (IPO) with a massive pop.

Its first day of trading under symbol CZR, has seen the price pop 80% as investors grabbed the shares of one of the most recognized names in the gambling industry, Caesars Entertainment. The current value of the company is near the $23 billion mark despite massive losses of $467 million in the first 9 months of 2011, and $634 million in the first 9 months of 2010. The firm also has debts exceeding $20 billion.

As reported by casino gambling news, Caesars only sold 1.5% of its shares to the public.

Becoming a publicly traded company will allow the company to easily raise more funding, by selling more of its shares, to compete with mobile casinos that have been ripping a share of revenue from land-based casinos in recent years. Nothing can also prevent the gambling giant to pursue online gambling businesses as well.

Caesars gets 90% of revenue from the United States alone. This single country concentration is quite a risky strategy. As a result, Caesars is investing $470 million in China casino on the island of Hainan. This is to meet surging demands for gambling entertainment among growing and increasingly wealthy Asian population.

This will enable millions of Chinese and Hong Kong-based gamblers to seek an alternative to Macau and pursue their smart strategies at beautiful casinos run by the gambling business icon. The fact is, Caesars offers not only great casinos, but also high quality hotels and resorts that go with them.

Its decades of experience in luxury gambling will surely give a tough ride to Macau.