Private-equity giants Leon Black and David Bonderman may be holding a losing hand at Caesars Entertainment.
The company, America’s largest casino chain, owned by the investors’ PE firms, has revealed that it is the subject of a money-laundering probe by the IRS.
News of the tax agency investigation comes days after Caesars revealed federal and state regulations have drawn a bead on its Las Vegas casino for possible violation of the Bank Secrecy Act and after state regulators in Massachusetts rejected the company’s application for a casino license in the Bay State.
Caesars shares have fallen 22 percent since Oct. 14. They closed Wednesday at $17.40, down 5.4 percent.
Black’s Apollo Management and Bonderman’s TPG Capital teamed on buying Caesars in a highly leveraged $30 billion 2008 buyout.
Before the recent problems, Caesars — the biggest casino operator in Atlantic City — was already losing money and on track to run out of cash in mid-2015.Josh Kosman