All of the casinos in Atlantic City are still shut down. That doesn’t mean ownership of these venues can’t change hands, though. New reports indicate Twin River Holdings has officially purchased Bally’s Atlantic City for $25 million.
It’s not a huge surprise. The previous owners are selling property to make way for a massive deal. Today, we’re going to look at the details of this major casino sale.
Let’s get into it!
Eldorado Resorts and Caesars Entertainment Continue Merger Plans
As most are well aware of, Eldorado Resorts decided to purchase Caesars Entertainment back in June of 2019 for an incredible $17 billion. It was the largest merger between two casino companies in history. Of course, a deal of this magnitude takes time to complete.
Before these companies can join, they must be given the green light from regulatory bodies around the US. That’s exactly what’s happening right now. Both companies are working to gain government approval to push the deal forward.
Early this year, three major state gambling commissions approved this deal. For a time, it looked like this merger would be approved before the end of the year. Unfortunately, things have slowed down over the past few weeks.
The spread of the coronavirus has shut down the entire US casino industry. As a result, many major casino companies are now losing millions of dollars every single month. This has taken a toll on both Eldorado Resorts and Caesars Entertainment.
These companies are now doing everything they can to continue their plans. Caesars is working to sell properties to gain additional revenue and appease state gambling commissions. New reports claim Caesars just sold one of its biggest and most profitable gambling venues.
Caesars Entertainment Officially Sells Bally’s Atlantic City
Atlantic City is now home to many world-class gambling venues. Prior to the global pandemic, this New Jersey city was earning an incredible amount of revenue from its gambling industry. That’s now changed and all the casinos here are now closed to the public.
Many of the biggest casino companies in the country now operate gambling venues in Atlantic City. This includes Caesars Entertainment. Last week, however, news surfaced that Caesars had officially sold Bally’s Atlantic City to Twin River Holdings.
This is a major deal for Twin River, which paid $25 million for this gambling venue. 2020 has been a big year for this company, which recently acquired three new casino-resorts in Colorado. Most analysts claim this is the biggest casino acquisition for this company to date.
Soo Kim, chairman of the company’s board of directors, commented on this new deal to the media this week.
“This is a great deal for Twin River, and diversifies our business across eight states,” Kim said. “It reaffirms our commitment to employees, customers and the communities in which we operate that Twin River will be stronger than ever.”
Interestingly, Caesar’s will retain certain parts of this venue. That includes the casino’s sportsbook. Hope is that the sale of this casino allows the New Jersey gambling commission to approve the merger between Caesars and Eldorado Resorts.
New Jersey is Still Weeks Away From Reopening
The new coronavirus has taken a serious toll on the entire US economy. One of the hardest-hit industries is the land-based casino industry. As we mentioned earlier, all casinos across the country are closed to the public.
Places like Atlantic City are being hit particularly hard. Officials here have continued to ask Governor Phil Murphy for a timetable on when gambling venues will be allowed to open again. It seems this is unlikely to happen for at least the next few weeks.
New Jersey has one of the highest Covid-19 death rates in the country. Obviously, things will not be able to become normal here overnight. Governor Murphy recently spoke about the situation to the media and claims it may be some time before the state opens again.
“I think the best understanding of the data right now is that we are still a number of weeks away,” he said. “We’re not of the woods yet. The mandate to stay at home and stay away from each other is still very much in effect until we can break the back of this curve.”
How exactly this will affect casinos like Bally’s Atlantic City is still unknown. The federal government is working on ways to help casino operators. Unfortunately, even major payouts may not be enough for some of these venues to remain open.
It’s a very unusual time for the US gambling industry. Stay tuned for more Atlantic City casino news over the next few weeks!