Caesars Entertainment completed its sale of Eldorado Shreveport to Bally’s corporation last week to satisfy the stipulation imposed by the Federal Trade Commission earlier this year after its merger with Eldorado.
The $17.3 merger created the largest gamblig company in the United States. The FTC required the surviving entity to dispose some of its casinos in markets that presented anti-trust issues. In Louisiana, Caesars was to sell Belle of Baton Rogue and Harrah’s Louisiana Downs Casino and Racetrack in Bossier City along with Eldorado Shreveport. The sale of the two other Louisiana casinos are still pending.
Said Caesars CEO Tom Reeg of the sale:
“Since our acquisition of the property 15 years ago, our team members’ passion and commitment have driven our success in Shreveport. We wish all of them continued success under Bally’s ownership.”
Important For Bally’s Corp.
The $140M purchase is important for Bally’s for several reasons. First, it aids the Rhode Island-based gambling company’s geographical diversification efforts, also diversifying its revenue source while diluting the concentration on its home market. The acquisition also enabled Bally’s to enter the 5th largest betting market in the United States, which is expected to boom even more with the approval of sports betting in the state.
After sealing the Shreveport deal, Bally’s now has a total of 11 casinos across seven different states, one horse track, 13 off track betting licenses in Colorado. With still other pending deals waiting to be completed, Bally’s is expected to control 14 gambling properties in 10 different states when all is said and done.
Not The First Buyer
While Bally’s is the company that closed the deal, it wasn’t the first buyer for the Louisiana casino. It can be recalled that last January, Eldorado announced that it would be selling the Shreveport property to Maverick Gaming LLC for $230M. However, that deal collapsed at the height of the coronavirus pandemic.
ERC then struck a deal with Twin River Worldwide Holdings, the predecessor of Bally’s last April. Twin River spent $20M for the control of the Bally name, brand, and intellectual property. Last month, Twin River completed the $25M acquisition of Bally’s Atlantic City. Shares of Bally closed at $49.14 or up by $1.66 after the announcement of the completion of the Shreveport deal.