Eldorado Resorts recently acquired seven casino venues of Tropicana Entertainment, which increases their footprint and leads to the possibility of online gaming in the US.
It was announced this week that Eldorado Resorts is spending $1.85 billion to acquire seven casino properties of Carl Icahn’s Tropicana Entertainment. The deal includes gaming venues in New Jersey, Nevada and Pennsylvania, all states that currently either offer online gaming or are about to. This sets up the company to not only increase their land-based footprint when it comes to land-based gaming but also move into the online gambling industry in the US as well.
Will Eldorado Resorts Enter the Online Sector?
With the Tropicana Entertainment deal, Eldorado Resorts will be taking on two gaming venues in Nevada, the Tropicana Laughlin Hotel & Casino along with the MontBleu Resort Casino & Spa. In Nevada, land-based gaming operators can offer online poker gaming, so Eldorado would have the option to do so, if they find a suitable iGaming partner. On May 1st, Nevada will begin partnering with New jersey for online poker liquidity sharing, along with Delaware, which would make online poker lucrative for the company if they choose to become involved.
In New Jersey, the company will be taking over the operations of the Tropicana Casino in Atlantic City. In this state, the company would be able to offer both online poker and casino gaming. The Tropicana already has an online gaming deal in place with Gamesys, so Eldorado Resorts could choose to maintain their agreement and instantly be involved in the online gambling industry.
In Pennsylvania, the company will be taking over the Lady Luck Nemacolin casino. The state is getting started with online gaming this year, with the licensing application process already underway. If Eldorado Resorts wanted, they could also offer online gaming in this region as well.
Since the news of the acquisition is new, it has yet to be determined if Eldorado Resorts is interested in becoming involved in online gaming at all. It would be smart to start in New Jersey as there the company would already have an established player base in the state. They could then use that model to create an online poker option in Nevada as well as offer online casino and/or poker gaming in Pennsylvania. However, new online operations would cost money and the company might want to wait a bit before spending any more after such a major expense with the acquisition.
Right now, speculation is all we have. It will be interesting to see how the company plans on moving forward with their new land-based operations as well as if they become involved in online gaming. It would certainly be lucrative for the company, but also an additional cost that they may not be prepared for, especially in Pennsylvania.
Online Gaming Continues to Expand
As we wait for Pennsylvania to launch their online gaming industry, other states are still considering becoming involved. This year, West Virginia and Louisiana have looked at online gaming as well as other states. It seems that Pennsylvania could have been a tipping point where states have become more open to the idea of becoming involved in the online gaming industry, be it with casino and/or poker operations. Also in the mix, are daily fantasy sports, online lottery sales and sports betting.
For now, the future of online gaming looks bright as states continue to at least discuss the option of offering some form of iGaming.