In September, Caesars Entertainment announced it was selling the LV Rio Hotel Casino in Las Vegas, Nevada. Obviously, a deal of this magnitude takes months to complete. This week, the Rio’s sale was officially completed.
This company is looking to earn as much money as possible right now. It’s set to merge with Eldorado Resorts in 2020. Here’s what the Rio sale means for Caesars moving forward.
Caesars Entertainment Posts Solid Q3 Revenue Figures
Caesars Entertainment is having an interesting year. In March, news surfaced that the company was in talks to merge with Eldorado Resorts. In June, the company officially accepted Eldorado’s offer to be acquired for an astounding $17.3 billion.
This deal is taking quite a while to complete. Before the companies can merge, they both need approval from various gambling commissions around the country. This is taking much longer than initially expected.
Fortunately, Caesars is continuing to perform well this year. New reports indicate that the company generated serious revenue earnings in 2019’s third-quarter. From July to September, It generated $2.24 billion.
Despite an operating and net loss, Caesars Entertainment still managed to see a profit gain of $110 million. The majority of this money came from Las Vegas. Revenue from the city increased by 7% last quarter to $973 million.
One way that Caesars is generating revenue is from selling property. Earlier this year, the company announced it was putting the LV Rio Hotel Casino up for sale. This week, the sale was finally completed.
Caesars Entertainment Completes Sale of LV Rio Hotel Casino
Property sales are becoming a common trend in Las Vegas. Several of the biggest casino operators in the city are beginning to sell some of their most valuable venues. MGM Resorts International, for example, recently sold both Circus Circus and The Bellagio.
In September, Caesars announced that it was selling the LV Rio Hotel Casino. The company claimed it was being purchased for $516.3 million. This week, the sale of this hotel-casino was finally wrapped up.
According to an official press release, the venue has been purchased by Dreamscape Companies, owned by Eric Birnbaum. Under the terms of this agreement, Caesars will continue to operate the LV Rio Hotel Casino for the next two years and will pay an annual rent of $45 million.
For now, the Rio will stay under the Caesars Rewards program. This may end once the company’s lease expires. The 2020 World Series of Poker will also continue to be held here during this time.
The completion of this sale comes at a great time for Caesars Entertainment. Hopefully, it helps to speed up the merger with Eldorado Resorts.
Missouri Approves Eldorado Resorts-Caesars Entertainment Merger
The merger between Eldorado Resorts and Caesars Entertainment is the biggest ever made between two casino companies. Unsurprisingly, this deal is taking months to complete. Before the companies can officially join together, they need approval from the 17 gambling commissions that they both operate here.
This week, members of Missouri’s gambling commission officially gave their approval for the merger. Both Caesars and Eldorado Resorts operate gambling venues here.
More states are likely to give their approval of the deal soon, as well. Tom Reeg, CEO of Eldorado Resorts, feels confident that the merger will be completed during 2020’s first half.
The LV Rio Hotel Casino has officially been sold. Caesars is likely to put more of its Las Vegas venues up for sale in the next few months.
Stay tuned for more updates on the situation over the next few months!