What: Shares of casino giant Caesars Entertainment Corp (CZR) jumped as much as 14% today after reports that it has settled anti-money laundering charges.
So what: The company has agreed to pay $20 million to settle criminal and civil charges from the Treasury and Justice Departments, according to a Reuters report that cites "a source familiar with the matter." The matter stemmed from the company's allegedly failing to properly police against illegal betting rings in its sports books. The government has been cracking down on potentially illegal money flow in casinos and Caesars was one of the high-profile targets.
Now what: Settlements like this basically just remove some clouds over a company like Caesars Entertainment and it's a good time to reduce the unknowns. Management has enough on its hands trying to restructure its largest subsidiary and save the parent company from bankruptcy. Today's news doesn't change the challenge in fighting creditors in court, but investors are clearly finding some satisfaction in the reduced risk today.
