Almost exactly a year ago, Eldorado Resorts and Caesars Entertainment announced they were joining forces. It was the largest merger between casino companies ever put together. Unfortunately, it appears this merger between Eldorado and Caesars will take a little longer than many analysts predicted.
This isn’t entirely surprising. The world is in the middle of a global pandemic and casino companies have seen their revenue earnings drop incredibly fast. Now is the perfect time to look at why exactly this massive deal is being delayed.
Eldorado Resorts and Caesars Continue to Lose Revenue
At the start of the year, it seemed like the US gambling industry was unstoppable. States around the country were expanding their gambling markets. As a result, casino companies saw their revenue earnings increase sharply.
Eldorado Resorts is one of the biggest casino operators in the country. It owns many casino-resorts and, prior to March, was continuing to purchase more property every month. In June of 2019, news broke that Eldorado Resorts agreed to purchase Caesars Entertainment for an incredible $17.3 billion.
Caesars Entertainment had been struggling for years. Many felt it was only a matter of time before this company was taken over. Many analysts believe this merger worked out extremely well for Caesars.
Unfortunately, both of these companies have lost an incredible amount of money over the past four months. Casinos around the country were forced to shut down back in March. It’s only been a few weeks since most of the country’s gambling venues have reopened.
The pandemic has taken an incredible toll on the economy. As a result, the merger between Eldorado and Caesars is taking much longer to finish than most expected. New reports indicate this deal will not be complete by June, as many initially predicted.
The Merger Between Eldorado and Caesars Won’t Be Complete in June
As we’ve already mentioned, this merger is the largest ever made between two casino companies. In order for this deal to be complete, both companies need to gain approval from various state gambling commissions and the SEC. Obviously, this takes a long time to complete.
It now appears this deal won’t be complete in June. Members of the Indiana State Gambling Commission won’t look at the details of this merger until July 10th. These companies need approval from this state government body in order to push the deal forward.
It’s disappointing news for officials within these companies. For months, they told the media they expected the merger between Eldorado and Caesars to be complete by the end of June. That is no longer the case.
No one knows when exactly this merger will be complete. There are still many steps that need to be taken. Fortunately, both companies’ share prices are starting to increase.
As of today, Eldorado Resorts’ share prices were up by 9%. Caesars saw its prices jump by 2.9%. Many gambling analysts fear that if casinos are forced to shut down once again, these prices will plummet.
The next step to finalize the merger between Eldorado and Caesars is to gain approval in Indiana. We’ll be sure to report on what happens after the commission here meets on July 10th.
More States Begin Allowing Casinos to Reopen
After almost four months of being shut down, casinos around the country are finally starting to open back up. It seems like every single day, more casinos announce they’re starting to accept guests again. Various states have officially given their casinos permission to open back up.
Atlantic City is taking its time lifting restrictions. As many already know, rates of Covid-19 are still high here. State officials worry that reopening casinos will lead to another spike in cases. Governor Phil Murphy believes the casinos here will be opened back up by July 4th.
Las Vegas is slowly getting back to normal. Many of the top casino-resorts in this city have already opened back up. Several more will reopen over the next few weeks.
It’s clear that this industry is getting back on track. The merger between Eldorado and Caesars continues to move forward. Hope is that this massive deal is completed before the end of 2020.
Reopening laws are different in every state. If you want to gamble inside a casino, make sure to check out the regulations. In time, it’s likely that all of the country’s casinos will be able to accept guests.
Make sure to stay tuned for more news on the merger between Eldorado and Caesars!