The future prospects of American casino operator, Caesars Entertainment Corporation, are likely to remain relatively restricted due the firm’s policy of largely overlooking Asia in favor of focusing the vast majority of its efforts on its home market.

Icahn agreement:

According to a report from GGRAsia, this is the opinion of the local branch of global brokerage firm, Sanford C Bernstein and Company and came despite the recent signing of a deal that saw billionaire investor Carl Icahn name a trio of new directors to the casino firm’s board.

Uncertain future:

Las Vegas-headquartered Caesars Entertainment Corporation is responsible for around 25 casinos including the iconic Caesars Palace Las Vegas Hotel and Casino but currently has no presence in any of Asia’s gambling hotspots such as Macau, Manila or Singapore. The firm has moreover seen the value of its shares decline by around 30% over the course of the past year while the agreement with 83-year-old Icahn is reportedly due to involve the initiation of a campaign that could see it sold or merged with a rival such as MGM Resorts International or Eldorado Resorts Incorporated.

Asian deficit:

However, an investigation from Sanford C Bernstein and Company analysts Kelsey Zhu, Vitaly Umansky and Eunice Lee has reportedly determined that Caesars Entertainment Corporation’s overall value is currently being limited ‘by execution overhang and a lack of exposure to Asia growth’ and will only be improved by large-scale corporate activities such as a merger or acquisition.

Reportedly read the analysts’ investigation…

“Our fundamental view of the company remains unchanged. We believe Caesars Entertainment Corporation’s long-term value is limited by execution overhang and limited organic growth. Caesars Entertainment Corporation is a United States-focused operator with no Asia exposure. We believe its potential foray into [South] Korea is of limited value and its United States business will experience limited organic top-line growth.”

South Korea possibility:

Caesars reportedly has plans to enter the embryonic Japanese gambling market and recently unveiled a plan that could see it finally construct a $700 million integrated casino resort near Incheon, South Korea. But, Sanford analysts reportedly declared that the firm’s long-term prospects are likely to be most helped by Icahn’s ‘thorough strategic process to sell or merge the company to further develop its already strong regional presence.’

Reportedly read the analysts’ investigation…

“One key question is really whether Icahn is a long-term investor looking to create value with the existing company or looking to flip his ownership for more immediate returns. He has done both in the past.”