Update on Restructuring Issues in Gaming: What’s Changed, What’s the New Normal

April 17, 2012
Turnaround Management Association of Nevada
Spanish Trail Country Club5050 Spanish Trail Lane
Las Vegas, Nevada 89113

When the Great Recession hit gaming in 2008, the industry didn't see it coming. Commitments of building and expanding were in play based on a vision planned years before. The gaming industry has suffered as personal wealth and discretionary spending decline. This has been exacerbated the Las Vegas housing slump, high unemployment rates and increased competition nationally. These difficult economic conditions have resulted in an increasing number of gaming-related bankruptcy filings and out-of-court restructurings over the past several years. The challenges facing the gaming and entertainment industry will continue to impact the U.S. economy and require innovative, yet practical and effective, approaches to restructuring.

In particular, gaming restructurings often involve complex and unique contractual arrangements involving slots and gaming loyalty programs, lease and real estate issues, gaming cash management issues, IP issues and issues related to multiple product offerings that include gaming, restaurant, entertainment, retail and lodging operationsa?" all of which are underscored by significant regulatory oversight. In addition, the traditional balance-sheet restructuring mechanic of converting debt into equity to deleverage the balance sheet can conflict with the desires of large creditors to avoid licensing. The panelists have seen and been a part of most of the restructurings in Nevada and have extensive and unique experience in understanding and tackling the various difficult challenges arising in gaming industry restructurings and discussed some of the new developments arising from the Great Recession of 2008.


Brett A. Axelrod, Esq.
Fox Rothschild LLP

Candace C. Carlyon
Shea & Carlyon, Ltd.


Dawn M. Cica
Lewis & Roca, LLP