About a month ago, two of the top gambling companies in the US agreed to an official merge. Eldorado Resorts purchased Caesars Entertainment for over $17 billion. Eldorado is taking over all of Caesars’ properties, some of which are located in Lake Tahoe. Is the Eldorado-Caesars merge affecting Lake Tahoe?
That’s what we’re looking at today. This deal is still in the process of being finalized, yet some major changes have already taken place for both companies. Let’s talk about how one of the country’s top gambling destinations is going to be impacted by this historic merge.
Eldorado and Caesars Deal Continues to Move Forward
Eldorado Resorts and Caesars Entertainment have been rumored to merge for years. Not long ago, Caesars was struggling financially. The company emerged from bankruptcy and immediately began looking for ways to turn things around.
On June 24th, news broke that the merge was official. Eldorado agreed to purchase Caesars Entertainment for $17 billion. Before this deal can be solidified, however, a number of steps must be taken.
Obviously, paying $17 billion is a major investment for Eldorado Resorts. This company has quickly begun selling several of its properties as a way to make up for the huge amount of money being paid. Caesars is also gearing up to sell a number of its major casinos.
There are rumors that Caesars is planning to sell one or more of its properties on the Las Vegas Strip. Tilman Fertitta, owner of Golden Nugget Casinos, has stated he’s interested in purchasing any Strip properties that go for sale.
These two companies must also receive permission from many gambling commissions around the country. Atlantic City’s commission, in particular, is taking a close look at this deal to ensure it’s fair to other companies in the city. Many are now asking, is the Eldorado-Caesars deal affecting Lake Tahoe?
How is the Eldorado-Caesars Merge Affecting Lake Tahoe?
Lake Tahoe has always been a hugely popular gambling destination. This small city, located on the border between Northern California and Nevada, is home to many casinos. Some of these casinos are owned and operated by the two companies listed above.
Both of these companies have been tight-lipped on their specific plans for the future. Right now, Caesars Entertainment operates Harrah’s and Harveys Lake Tahoe. Eldorado Resorts began operating MontBleu Resort Casino & Spa in 2018 after purchasing Tropicana Entertainment.
Once this deal is complete, Eldorado Resorts will acquire all of Caesars’ properties. This includes Harrahs and Harveys. Eldorado claims it will make more than $500 million in its first year of merging. Many believe the company will be forced to lay off hundreds, if not thousands of casino employees.
That’s one major concern. There’s also the issue of having so much control in Lake Tahoe’s gambling scene. The three casinos we just mentioned are the most popular gaming venues in this city. The other casinos here, including Hard Rock Hotel & Casino, Lakeside Inn, and Dotty’s Casino will be forced to compete.
CEO of Eldorado Resorts Tom Reeg has confirmed that properties will be sold in order to comply with SEC guidelines. There has been no word on whether or not a Tahoe casino will go on the market.
Is the Eldorado-Caesars merge affecting Lake Tahoe right now? No. In the future, this could certainly change. Make sure to stay tuned for updates on this situation as they come out!