The proposed $17.3 billion megadeal for Eldorado to acquire Caesars would create a monster casino and sports betting company in the United States.
In terms of gaming assets, the acquisition of Caesars Entertainment Corporation by the Eldorado Resorts would make for quite the partnership. The Las Vegas Review-Journal pointed out that the deal would give these industry leaders a total of 60 domestic casino resorts as well as gaming facilities in 16 states. The buyout would reportedly finish by next year according to the two companies.
“This is a very big deal because it will establish Eldorado’s presence in Las Vegas,” Associate Director of International Center for Gaming Regulation Jennifer Roberts told the Las Vegas Review-Journal.
Eilers & Krejcik Gaming managing director Chris Grove told the Las Vegas Review-Journal that this merger could make some “tricky questions” for the new company when it comes to sports gambling. Eldorado CEO Thomas Reeg labeled sports gambling “the best” opportunity for the new Eldorado-Caesar’s partnership.
“Caesars has a plethora of sports partnerships, including league partnerships, team partnerships and ESPN,” he said. “We’ve seen them all fitting together.”
Eldorado, which issued a news release on the announcement, has a handful of sportsbooks in place at its 26 properties in its 12 states. Meanwhile, Caesars allows wagers at its locations, but they have different operators in place for their sportsbooks.
“Eldorado already has deals in place with William Hill and the Stars Group, while Caesars brings an existing deal with DraftKings to the table,” Grove told Las Vegas Review-Journal. “Who gets priority? Who gets priority in certain markets? Who gets priority in retail versus online?”
Caesars, which also issued a news release has put a good amount of money in terms of investments in the World Series of Poker online presence, online casinos in New Jersey and Pennsylvania and WSOP.com. On the flip side, the Eldorado company has not done much in terms of investments with online gaming.
Eldorado will have to adapt to the thriving market that is online sports gambling, and Reeg is at the forefront. The deals made with William Hill and the Stars Group are further evidence that the plan is in place to build even further on this landscape that is sports gambling. Now we will see how this plays out with Eldorado taking over Caesars properties.
Eldorado Resorts would keep the more internationally and American-known Caesars name in place. They’d take over roughly 51,000 hotel rooms, near four million square feet of casino space, 71,000 slot machines, 4,000 table games and about 300 food and beverage outlets.
Prior to this move, Eldorado Resorts had only one property in the state of Nevada which sits in southern Nevada currently at the Tropicana Laughlin. However, with this acquisition, the casino operator is destined to make even bigger moves down the road. That includes taking control of the properties that Caesars has under its name on the Strip.
In Las Vegas, Harrah’s, the Flamingo, Bally’s, The Linq Hotel, The Cromwell, Paris Las Vegas, Planet Hollywood Resort and the Rio are all operated by Caesars.
Grove told the Las Vegas Review-Journal that he says he believes that Caesars will be the lone property that is “absolutely safe.” He also said that “it would not shock me to hear any and all of Las Vegas’ Caesars properties mentioned as potential targets for divestiture