Last month, it was announced that James Packer had his sights set on entering the American gambling market. He planned on purchasing the Cosmopolitan Hotel and Casino on the Las Vegas Strip from Deutsche Bank, but he was beaten to the punch by a company called Blackstone Group.

The Cosmopolitan was a beautifully-designed hotel that was aimed at attract A-list celebrities and wealthy gamblers with its stylish look and luxurious amenities. However, the casino failed to thrive, and Deutsche Bank decided to cut its losses and sell the property. Since Deutsche Bank is not a casino operator, it only makes sense for the company to sell the Cosmopolitan to a firm with more experience in in the gambling market.

While Blackstone does not operate casino properties, the company is heavily invested in the hospitality market. As such, Blackstone Group sees the value in the Cosmopolitan, and will work hard to make it one of the best casinos on The Strip.

"This marks the beginning of the next chapter for The Cosmopolitan of Las Vegas and the thousands of dedicated CoStars who are committed to providing a compelling guest experience," says CEO John Unwin. "It is a testament to our unique approach to the Las Vegas market." The casino will be sold for $1.73 billion cash.

Since the casino only earned $103 million in 2013, Deutsche Bank is making 17x more than the casino seems to be worth. There is huge potential for growth for The Cosmopolitan, so it does seem that James Packer an Crown Resorts have lost out on a great opportunity. Still, the casino operator has plenty of other projects on the go.

Crown Resorts is currently making plans to open a casino resort in the Sri Lankan capital of Colombo, and Packer also has his sights set on opening a casino in Japan once casino gambling is legalised.

About the Author

George Anderson
Author George, has over 25+ years’ experience in the Pokies and Casinos industry throughout Australia and New Zealand. Loves to research new Pokies games on the block and follows announcements from top industry providers about their upcoming releases. As soon as a new interesting pokie game appears on his radar, George is there to check it out and give you the scoop before anyone else and tell you about all casino sites where can play the latest game. Before this gig, George worked as Pokie game tester, making him an ideal candidate for this genre of work. He is also an animal lover and a proud owner of three dogs.