Harrah's responds to the hearing of the bill on the Senate floor

Newell Normand
Wednesday, May 16th

David Satz, Senior Vice President, Government Relations & Development at Caesars Entertainment Corporation, calls in to rebute the findings of a Louisiana financial expert. 


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

We continue our conversation on the Harris bill that actually makes its way to the senate floor this afternoon after having come on his senate revenue. And desk committee on a 64 vote in its approved and joining us now representative from. Harris is David Sacks. Welcome to the show David. And more good so who. And you guys were at the committee meeting in and you'd be the other day where these amendments were proposed and I got to imagine it EL a bit having conversations would not only the administration but members of the senate. As it relates to the amended version and makes its way to the floor. That's correct genome were glad to be in discussions. At this point where its leadership in hand. I think everyone's constructively moving forward were making sure the economics. We're we're both the company and the state and the city. And we're excited to be where we are. That we can bring us together. I know it's really you reflect on its. There's really no other state that would turn down the kind of economic development in me you think of the money on the table right now. There's twenty million dollars that would be guilty to this date just from what we've done deal could be boarded you'd be. I hearing that twenty million a year you if you're good debate on. On yelled go into the taxpayers and looking for more and more money raising taxes or cutting programs. And you just scratch your head so we're really hopeful that everyone sees the economic value here and we we find a way that works for everybody creek that we went. Well the feeling that I get is that the comfort level now as it relates to this is that you know we can argue about whether or not it's the best deal and or a fair deal or not. But in out that I guess in in my thing has never been anti Harris are against Harris it's always been about doing. Are due diligence on our side you guys of the sophisticated players and that's not to say that anything that you have said it's false it's just that the validation process that you go through. But I didn't really believe. That senator Gary Smith the new work that you do with some of his committee members were very fruitful and I hope that Harris has the same attitude. And as we under the senate floor this afternoon that we're not going to be hit with any surprises. Because then I think it may be at risk and look I've said this all along we need you to succeed. I was against prohibiting smoking for you guys I thought it was a bad bad deal. You know. I'm not I'm not in favor of all the land based come in common on because I didn't think that was fair to yell either. You know and and if were gonna regulate industry I think we ought to regulated to the standpoint that we want you to succeed not fail. Well I think that the great point so if you use that data points from other state know whether stated that are charged with anything beyond. Regulatory fees or extension. It's you know right now we use you know over a 125. Million dollar in value. Immortal we did you. This is a no brainer for this state and the city that they want to end. You know our board and our shareholders. Wanted to steal our money invested in a way that creature ate a fair return. And if this state the city built on it you don't want help with the budget we can invest it elsewhere so. It definitely know David David a you keep going back to that. Point and I don't wanna get argumentative with you but if Warren Buffett had done it the way that everybody else did it. He wouldn't be Warren Buffett. So the fact that other states approached it in a different way in mom view is truly a note moment it doesn't mean. You tell me that we don't appreciate. Harris'. It does mean that we find ourselves and the circumstances always different. With all due respect you think there's a reason why this state is well in economic development. If you if you don't want a bit mr. We create standards. That they're open and got it and I think we packed constructive discussions and I'm happy to say the leadership of the state is looking at this. To a separate them and we hope that we can do. Why I hope that he I hope that you know that there's not going to be too much movement off of the amendments that were in the senate today. Because my fear is is that. That's gonna create an environment where questions are going to be Stephen Moore so. But we're relying on me up financial planner from Metairie or guidance Cindy max's dad stayed there. I. But not as if he was just me you know. Yeah there you go again attacking near the opponents for raising issues I mean. He it's not a question of the money into it who wanted to do you disagree that churned a bottom core tile as it relates to performance as at a casino route operators. All okay so he made that observation so let's give him a check for that once you do we wanna go all the points. 1910. Let me let me ask you this on a default would wanted to follow would be cheap to yell have to pay 85 million if you know if you don't deliver this league. Record Democrats say to the question on the default would be to do you have to pay 85 million under the false police. If you're not able to deliver that at least you have to pay VG 85 million dollars. Featuring an actual transaction it's a simple question David yes or no. In the call option but that's not a guy but so but that bad but these are robs they. Things that these guys but these are observations these guys made in order to assess. Obviously obviously the value. Of what this is to the viability. Of the reach. That big dollar trying to tray its car and operating. License to. In in that case in ya gonna pay them a lease payment for. Bloggers things you don't you're being objective you're not you're taking me the opponent's side so let me get the answers. Well I'm not. Talk to that may answer. Why. We are mark to market leader of rideau largest gaming company were number one Jew and every one of our markets. So if you want to look at competition. And its New Orleans scare in Louisiana and care about. Our remaining competitive. In Mississippi has a single digit tax rate Mississippi as smoking. Mississippi gonna have sports betting in sixty days. Mississippi at 18100 loans and no restrictions. Yoga. Still been met financial planner saying that somehow we're not. Do you didn't say what the market leader she didn't say we have the largest database. He didn't talk about the 76 million dollars that we spend writing towards them into New Orleans. Driving business to local businesses. So let's look at the fact we get rid of the fiction okay because. You're not being there. I know I Ambien affair but I I agree with. I agree with you on all those points every one of those points of agreed with you and in fact I've also said. That the people it said they don't warn up front as I corrected him and said no I looked at the minutes. Of the the casino gaming operators board and and yell at revealed all most about 90% up. I just wanna make sure worked there with that back to appreciate your come. So I mean we'll go back and listened to it on a podcast upset it over and over again you already sealed. The war. I respect you for that but again at three under the act that's gonna create a 900 jobs in 600 construction job. That economic development that wrote this city in the state and at a certain point. You can't have standards that make that investment just economic we can bet that many state and my point here. It got to be spared deal and we were I'm happy to say. Engage in constructive disgusting. With a bunch of party leader and members and I think we're gonna get there were site. About. I hope so because I think everybody really wants shell as the partner. I don't know I think he would be disruptive to switch and go somewhere else. That is my personal belief I don't think it makes good business sense. Tell you that having said that. Does not mean that we should be you know criticized. But for the folks warning to do a due diligence process. I don't agree with my wife one half the issues we talk about you know so I mean I just and you and mr. real have been very passionate and yell obviously your Trudy your mission in true do you accompany. I'm not critical that you better damn well because I'm sure they're paying a lot of money. And opened and you know so. We gave an honest broker for twenty years in this city we better commitments. We've paid or. Fall on its one point two billion dollars we ate this city 300 million dollars. And you know yes I usually. Only thing that development and we wouldn't be going through how much money can we get rid of that so we hope there. It goes where are you telling me that landowners. Don't go into a negotiation. Believing that they wanna maximize. The amount of money that they get on a lease. David good. Don't want or don't insult my intelligence I mean that's basically what this is you're complicating this issue prompt issue. I know that when you all own property in you're gonna Lisa to a third party you're gonna maximize the value of that leaks. Yeah I don't understand how you in good conscience. You know given everybody their duke and sit here and and criticize the ot the opponents for trying to just say simply. That. Those opponents that competitive being tracked so let's let's put that on the table accurate about that you'd be hearing. They have a lot the Internet they're they're up to beat this there's been no subsidy that they duel and its goods were pretty good for this state. And again I'm glad that. When you say they get subsidies you talk about tax credits. I dropped about tax credits. You don't get any we did that people who are you were given a monopoly. There is still ahead they'll have a monopoly well we don't work gimmick video I mean if you wanna talk about. You know we're given a monopoly no hotels no restaurants no this hundred million has been reduced to sixty. I mean weakened cry over the spilt milk all we want David. I mean if we're going to be today airport we're we're gonna be fair well if we're going to be fair and we wanna go look it at historical perspectives on all of this. And the egg unit in you're gonna accuse them of getting subsidies. Let's talk about that I'm I'm ready to talk about it and I. And don't I'm happy to talk that we have the full support of the New Orleans. The restaurant association in the state. The greater New Orleans hotel association award because weekly spin it we grow the economy. Of course she got duke and showed do today the opponents they all do yell all dude it's a good thing and we needed to happen. But that doesn't mean that that we need to end up hitting one another because we disagree on some finer points of a negotiation. Oh that's all I'm saying it. For a competitor being you know we're not going opposing an error your request perk subsidies and alike are we. Don't do that there are out there are saying it's great support. Tax credits your your dude. You're do those two in fact Mort there's some tax credits under redevelopment of that building. I don't believe I ash and the remember that they've made the effect on I'll find out David I'll give you the final thought. I do think that hopefully we welcome together these discussions lead through this economic development and the jobs. And I appreciate the in will be what. All right thank you so much always have an opportunity just give a shout and we'll let you get on here and say what you gotta say David Sacks with Harry is. This bill heads to the senate floor we'll see what happens.