Caesars Entertainment Signs New Deal With MLS

Caesars Entertainment is one of the biggest casino companies in the country. Over the past couple of months, Caesars has been going through some massive changes. This week, news broke that the company officially secured a deal with an MLS team.Caesars Entertainment

It comes at an interesting time. This company is currently working to merge with Eldorado Resorts. Today, we’re going to discuss this upcoming merger, and look at how this new MLS deal will help the company in the future.

Let’s get into it!

2019 Was An Interesting Year for Caesars Entertainment

Caesars Entertainment has always been one of the biggest casino operators in the country. It was founded back in 1937 and grew extremely quickly. Over the past few decades, the company’s revenue began to fluctuate.

In 2014, rumors began to circulate about Caesars struggling to turn a profit. The next year, the company’s casino unit officially filed for Chapter 11 bankruptcy. That doesn’t mean it was closing down, though.

This company remains one of the largest casino operators in the country. Many analysts predicted that Caesars Entertainment would eventually merge with another major US casino company. In 2019, these predictions turned out to be correct.

In March of 2019, news broke that Caesars was merging with Eldorado Resorts. Of course, a deal of this magnitude takes a long time to complete. Eldorado Resorts is one of the most powerful gaming companies in the world.

Over the past few years, Caesars has begun to sell some of its major properties. This is all to help prepare its upcoming merge. This week, reports came out that the company signed a new deal with one of the country’s top sports leagues.

Caesars Entertainment is Now a Sponsor of an MLS Team

It’s not uncommon for casino companies to sign sponsorship deals with sports teams. In fact, many of the top US casino companies have inked deals with sports teams overseas as a way to break into a new country. Caesars just announced that it’s signed a sponsorship deal with D.C. United.

Moving forward, members of this popular MLS team will wear Caesars’ logo on their jerseys. It’s the first time that an MLS team has ever signed a deal with a US casino operator. It comes as part of the company’s strategy to become a leader in sports.

Jason Levien, Co-Chairman of D.C. United, commented on this new deal to the media this week.

“Partnering with Caesars provides us with a great opportunity to realize the dream of Audi Field being a year-round hub of entertainment and activity and is another strong indication that global brands continue to see value in partnering with our organization,” he said. 

This deal is also allowing Caesars to appear throughout the team’s stadium. The logo will likely be featured in Audi Field. Bar, restaurant, and several new entertainment concepts are also being considered.

More States Approve the Caesars-Eldorado Merger

The merger between Eldorado Resorts and Caesars Entertainment is the biggest ever between two casino companies. It’s costing $17.3 billion for these companies to combine. The deal cannot be finalized until the country’s various state gambling commissions give their approval.

Fortunately, many states around the country have already given this deal the green light. It’s fantastic news. Now, the deal has fallen into the hands of New Jersey’s gaming commission.

State commissions want to ensure that this merger does not create a monopoly. Once merged, these companies will control a huge number of casinos in different states. This includes several major gaming venues in Atlantic City.

Officials within Atlantic City are currently studying the impact of this new deal. There’s a chance that several properties will need to be sold here in order to comply with the commission’s regulations. Eventually, the FTC will also need to approve this deal.

Caesars Entertainment is still an extremely powerful gambling corporation. Hopefully, this new sponsorship deal with the MLS helps to bring even more exposure to this company.

Stay tuned for updates on this situation over the next few months!

Caesars-Eldorado Merger Deal Pending New Jersey’s Approval

Ariel View of Atlantic CityThe $17.3 billion merger between Caesars Entertainment Corp. and Eldorado Resorts Inc. is still dependent on approval from 14 state regulatory agencies and the Federal Trade Commission, including New Jersey.

So far, four state regulatory bodies have approved of the merger, including Pennsylvania, Louisiana, Iowa and Illinois.

The merger will grant Eldorado Resorts control of close to 60 casinos in the country. While no explicit deadline for New Jersey regulators to make an approval decision on the merger decision has been set, gaming operators expect a deal finalization within the first half of 2020.

One reason New Jersey could be delaying approval are concerns they’ve cited over the economic concentration the deal would cause in the state, and Atlantic City turning into something of a monopoly.

Dan Heneghan, former public information officer for the Casino Control Commission (now retired) and former casino beat reporter for The Press of Atlantic City, said state gaming regulators are “concerned about economic concentration in the casino industry for many of the same reasons that the (federal) Justice Department is concerned about monopolies in industry in general.”

“If you have a monopoly, or something close to a monopoly, there’s always the concern that the big player can effectively set prices,” Heneghan said.

Back in September, Caesars Entertainment and Eldorado Resorts presented a joint petition to NJ regulators, and stated their intentions of providing an economic analysis that would disprove their merger would cause an undue economic concentration.

New Jersey and Atlantic City Play Major Role in Deal

Since the newly formed company will control nearly half of the resort’s casinos (four out of the nine total casinos), New Jersey and AC will play a major role in the deal. Under its current designations, the company merger will employ 40% of casino industry workers in Atlantic City and represent almost 37% of their total gaming revenue.

Currently, Caesars Entertainment has three outstanding deed restrictions on former casino properties. Those include the former Atlantic Club Casino Hotel, the Claridge Hotel and the Showboat Hotel Atlantic City. These restrictions disallow them to operate as gaming parlors and adds some stress to the current deal.

The Attorney General’s Office, who advised that New Jersey gaming regulators would also be retaining an expert, said this in an email:

“As required by law, the Division is responsible for ensuring the honesty, integrity and financial stability of casino licensees. Part of this process is analyzing the economic impact of casino acquisitions such as the Eldorado / Caesars merger. As part of this process the Division has retained an economic expert to assist with the review of this merger.”

About the Caesars-Eldorado Merger Deal

Eldorado Resorts $17.3 billion acquisition of Caesars Entertainment is slated to become the world’s largest casino operator in terms of gaming assets. To acquire 51% of Caesars, Eldorado will pay $7.2 billion in cash and 77 million shares of stock, as well as taking on Caesars’ existing debt.

Upon regulatory approval, Caesars will merge with Eldorado subsidiary Colt Merger Sub Inc and a new, wholly owned Eldorado subsidiary will exist and operate under the Caesars name.

Three More States Approve Eldorado Resorts’ New Merger

Back in June, officials within Eldorado Resorts announced that the company had agreed to formally merge with Caesars Entertainment. It’s the largest merger between casino companies in history. This week, three more states officially approved Eldorado Resorts’ new merger.Eldorado Resorts Logo

The process to combine these two companies was expected to take a long time. A huge number of states need to give permission for the two operators to join forces. Today, we’re going to look at what still needs to happen for these companies to merge.

Let’s get started!

Why Did Eldorado Resorts Purchase Caesars Entertainment?

Eldorado Resorts is one of the biggest and most successful casino companies in the world right now. It was founded in 1973 in Reno, Nevada. Over the years, it’s expanded across the country. Eldorado Resorts now operates 23 properties across 11 different states.

Since 2013, this company has worked hard to acquire new properties. First, it agreed to merge with MTR Gaming Group. In 2015, the company purchased Circus Circus Reno and a 50% stake in Silver Legacy from MGM Resorts International for $73 million.

In 2017, Eldorado acquired the Isle of Capri Casinos for an astounding $1.7 billion. Over the next few years, this Reno-based casino operator continued to purchase properties. By March of 2019, rumors began to surface that Eldorado was going to purchase Caesars Entertainment.

The timing of this deal made sense. Caesars Entertainment had fallen into debt and was looking for a way to turn things around. By June, Eldorado revealed that it was purchasing the fellow Nevada-based company for an astounding $17 billion. The goal of this deal is to help Eldorado expand its presence across the country.

A deal of this magnitude can’t be completed in a day, though. A huge number of state gambling commissions need to ensure that this will not create a monopoly-like situation. Fortunately, this process of approval is moving along smoothly.

Three States Approve Eldorado Resorts’ New Merger

Ever since June, Eldorado Resorts has been seeking approval from various state gambling commissions. It’s already received approval from many major states yet there’s still a long way to go before this merger is finalized. This week, three additional states announced they have approved Eldorado Resorts’ new merger.

The commissions in Louisiana, Pennsylvania, and Illinois all gave this deal the green light. The Louisiana approval is particularly exciting, as the company will soon operate several new gambling venues in the state. There are still some important states that are holding out, though.

Approval in New Jersey will be extremely important. Officials within Atlantic City have raised concerns over the impact that this deal will have on other casinos in the city. With that being said, it seems unlikely that this state’s gambling commission will choose not to approve the new merger.

Nevada is another important state that has yet to formally approve this deal. Based on the way things are moving, the merger between Eldorado Resorts and Caesars Entertainment will be completed by mid-2020. The Federal Trade Commission still needs to agree to it, as well.

Eldorado Resorts’ new merger will create the single largest casino company in the United States. It will be extremely interesting to watch this deal progress over the next couple of months.

Major Las Vegas Property Sales Continue

There have certainly been some major changes to the US casino industry lately. Of course, not every company is looking to merge with others. Several huge casino operators have instead looked at property sales as a way to generate additional revenue.

This is especially true with MGM Resorts International. The Las Vegas-based company has recently sold several of its biggest and most profitable casino-resorts in Las Vegas. The first came back in October when MGM sold both The Bellagio and Circus Circus. The sale of The Bellagio earned the company more than $4 billion, making it the biggest in Las Vegas history.

A few months later, MGM Resorts announced that it was selling the Mandalay Bay Hotel-Casino.

Not all of these sales aren’t exactly what they appear, though. MGM has chosen to lease back several properties and retains control of its operations. It’s currently paying $245 million per year to keep operating The Bellagio.

Depending on how successful Eldorado Resorts’ new merger with Caesars Entertainment is, more companies may choose to take a similar approach. For now, several casino companies are simply choosing to part with their venues as a way to earn more revenue.

There is a lot happening in the US casino industry. Stay tuned for more updates over the next few months!

Louisiana Gaming Control Board Approves Proposed Caesars-Eldorado Merger

Eldorado-CasinoOn Friday, the Louisiana Gaming Control Board officially approved the proposed merger between Caesars Entertainment Corp. and Eldorado Resorts. While the board gave the $17.3 billion deal the thumbs-up, the regulator also criticized Eldorado for lacking in its efforts to upgrade its Baton Rouge casino.

Members of Eldorado’s brass made an appearance in front of the Louisiana Gaming Control Board on Thursday with hopes of helping the merger’s chances of being approved. Getting approval in all states in which Eldorado and Caesars operate is a necessary step for both to go forward with the proposed deal. The lucrative pact was officially announced in June of 2019, and industry experts believe the merger will close sometime in the middle of this year.

Louisiana Board Grills Eldorado Executives

Ronnie Jones, the Chairman of the Louisiana Gaming Control Board, asked Eldorado CEO Tom Reeg whether he and his team “were up to the task to make sure that you spread attention to all of the properties in all states in which you operate.” Jones cited the fact that Eldorado’s Belle of Baton Rouge Casino and Hotel has struggled to meet its financial goals over the past few years and that the lack of renovations is to blame.

Jones also made a note of the fact that Reeg and the rest of Eldorado’s representatives in attendance for Thursday’s meeting did not even stay at the Belle property. Instead, they stayed at L’Auberge Casino Hotel, which is owned by competitor Gaming and Leisure Properties.

Eldorado has invested only $1.1 million since acquiring the Belle, with most of the money going toward refurbishing and upgrading slot machines and gambling equipment. However, Reeg and Eldorado formally pledged to invest quite a bit in the riverboat casino property in the years ahead.

Eldorado Pledges Millions to Louisiana Properties

Reeg said that he and his group “understand that asset in its current state is not acceptable to the state and is not acceptable to us either.” He added that the “situation will be different” the next time they appear before the board. Eldorado subsequently pledged to spend over $500 million in Louisiana over the next 4 years, with $325 million of that money going toward overhauling Harrah’s New Orleans. Harrah’s is operated by Caesars.

Another $110 million will be put toward moving the Isle of Capri Casino Lake Charles onto land. The same will be done to the Belle of Baton Rouge. That process will involve moving the riverboat into a nearby atrium that had previously housed a shopping mall.

More Regulatory Challenges Ahead

Shareholders for Eldorado and Caesars both approved the proposed merger in November of 2019. Louisiana was the second regulator to officially vote on the merger after Missouri voted in December, and there are 12 more states that need to do the same before the deal will close.

Reeg said last summer that he would expect the deal to close some time in the first quarter of 2020, but that is looking unlikely at this stage. At the time, Reeg said,

“We’re still targeting a first half of 2020 closing date. If I were to place a bet today, I’d be betting on a first quarter close versus a second quarter close. But we’re going through the regulatory and antitrust in real time.”

Shareholders from Eldorado and Caesars were both over 99 percent in favor of the deal. Eldorado’s stockholders additionally approved a measure to reincorporate Eldorado from Nevada to Delaware following the merger’s closing later this year. Eldorado is set to pay over $7 billion in cash with 77 million shares of stock in order to acquire 51 percent of the new company. Eldorado will also take on Caesars’ existing debts.

Once all regulatory hurdles are cleared, the new company will own 60 casinos with 51,000 hotel rooms, 71,000 slot machines and 3,650 table games across the United States.

Caesar Entertainment’s Sale of the LV Rio Hotel Casino is Complete

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.

LV Rio Hotel Casino

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!

Missouri Approved the Eldorado-Caesars Merger

Back in June, Eldorado Resorts announced it was paying more than $17 billion to acquire Caesars Entertainment. Before this deal could be finalized, however, the two companies need approval from several state gambling commissions. This week, Missouri approved the Eldorado-Caesars merger.Stamp Of Approval

It’s a huge step in finally getting this deal finished. Of course, the companies still need approval from several other commissions. Let’s look at what led to Missouri’s official approval.

Officials Continue Working to Get Eldorado-Caesars Merger Done

Eldorado Resorts and Caesars Entertainment are two of the biggest casino companies in the world. Both currently operate gambling venues around the world. Since June, officials within both companies have been working to get their merger complete.

Eldorado has paid an astounding $17.3 billion to acquire Caesars and its venues. It’s the largest deal ever made between two gambling operators. For obvious reasons, Eldorado Resorts is looking at ways to make some of this money back.

One way to accomplish this goal is through property sales. In July, the company announced it was selling two of its major properties. In the future, many more of these sales will begin taking place.

Eldorado already has plans to sell some of Caesars’ properties in Las Vegas. This is becoming more common nowadays, with MGM recently selling two of its biggest Las Vegas venues over the past few months.

It’s been a long, difficult road for these companies to complete this merge. Approval is still needed around the country. Fortunately, one state has just finally given the green light for the deal to go through.

Missouri Lawmakers Approve Merger This Week

Both Eldorado and Caesars need approval from all 17 states that they operate in. This is a crucial and difficult process in getting the Eldorado-Caesars merger completed. On Wednesday, members of Missouri’s gambling regulatory body announced they were accepting the terms of the merger.

Caesars Entertainment currently operates one property in Missouri, called Harrah’s North Kansas City. Eldorado Resorts runs four different venues here. Isle of Capri Casino Boonville, Isle Casino Cape Girardeau, Lady Luck Casino Caruthersville and Isle of Capri Casino Kansas City are all run by the major casino company.

Interestingly, Eldorado plans to put three of these venues up for sale. It’s clear the company is hoping to make as much money from its real estate as possible.

Eldorado Resorts CEO Tom Reeg recently commented on the timetable for the merger’s completion to the media.

“We’re still targeting a first half of 2020 closing date,” Reeg told investors during a third-quarter earnings call in November. “If I were to place a bet today, I’d be betting on a first-quarter close versus a second-quarter close. But we’re going through regulatory and antitrust in real time.”

It’s an exciting time for these companies. Hopefully, Missouri’s approval of the Eldorado-Caesars merger helps push other states to do the same.

Are More Las Vegas Property Sales on the Horizon?

As we’ve already mentioned, hotel-casino sales seem to be the new fad taking place in Las Vegas. In 2019 alone, some of the city’s biggest and most popular venues have changed ownership. One that many expected was the Hard Rock Hotel & Casino’s sale to Virgin Hotels.

Virgin Hotels is still extremely new and has limited experience in the casino industry. Officials in the company are working with professionals to deliver the best possible product. Based on what we know about this venue, it’s going to be fantastic.

MGM Resorts International is also focused on selling some of its venues. Not long ago, it sold Circus Circus to Phil Ruffin. That same month, it sold The Bellagio for more than $4 billion. It will now lease the property back from The Blackstone Group.

Several other companies including Wynn Resorts and Las Vegas Sands also claim that Las Vegas property sales are a possibility for the future. All of these companies are focused hard on breaking into the newly-emerging Japanese market.

The Eldorado-Caesars merger is moving ahead as planned. Time will tell how these two companies will manage together.

Stay tuned for more US casino news over the next few months!

Casino Leasebacks Could Become the Next Big Thing in Las Vegas

  • MGM Resorts sold and is leasing back the Bellagio Hotel & Casino.
  • More Las Vegas casino leasebacks could be on the horizon.
  • Eldorado Resorts is interested in selling property, too.

Not long ago, MGM Resorts sold The Bellagio to the Blackstone Group. Under the terms of this sale, the hotel-casino will be leased back to MGM Resorts, which will continue to operate the venue. Many analysts now believe that casino leasebacks could become the next big thing in Las Vegas.

Bellagio Las Vegas Hotel Casino

This move allows MGM Resorts to begin investing more money into property overseas. More companies likely recognize this and will choose to do the same. Let’s look at what this means for the future of Las Vegas.

MGM Resorts’ Sale of the Bellagio, Explained

MGM Resorts International is one of the biggest and most profitable casino companies in the world. It owns and operates many hotel-casinos in Las Vegas including the Mirage, MGM Grand, and Mandalay Bay. Recently, company officials revealed plans to sell some of the biggest venues in Las Vegas.

Eventually, news broke that MGM sold Circus Circus Hotel & Casino. The venue was purchased by Phil Ruffin, who owns several major properties in Las Vegas already. Reports indicate that Circus Circus was purchased for $825 million.

Immediately after selling Circus Circus, MGM Resorts announced that it sold the Bellagio Hotel & Casino, as well. The Bellagio is considered one of the most prestigious venues on the Strip. The Blackstone Group bought this property for an astounding $4.2 billion.

Not long after the sale was announced, details emerged that showed it would be leased back to MGM Resorts for $245 million a year. MGM Resorts will continue to operate the hotel-casino, as well.

These casino leasebacks could start becoming more common. Analysts predict more could be on the way.

Analysts Predict More Las Vegas Casino Leasebacks in the Future

Property values are continuing to rise in Las Vegas. Interestingly, more of the hotel-casinos here are owned by just a few companies. Many of these companies are now pushing to open new gambling venues overseas.

Japan, in particular, is an extremely desirable location for many casino companies. Only three casino licenses are set to be handed out here. Recent reports claim Japan could become the world’s third-largest casino market over the next few years.

Casino leasebacks could be the best way to generate revenue for these overseas investments. John DeCree, a gambling analyst for Union Gaming, believes this will soon become common in the city.

“It’s definitely a trend in the market,” he said. “As real estate investors are learning the casino industry, they’re realizing it’s a viable and stable real estate investment.”

Some companies are now claiming to be interested in this strategy.

Eldorado Resorts Likely to Sell Las Vegas Property in 2020

Earlier this year, Eldorado Resorts announced that it was acquiring Caesars Entertainment for more than $17 billion. It’s the largest merger between two casino companies in history. Eldorado Resorts is now looking at new ways to generate revenue to make up for the huge price of the acquisition.

Tom Reeg, CEO of Eldorado Resorts, said in a conference call on Wednesday that he’s interested in new real estate deals after the merger with Caesars is officially complete.

“Caesars has a lot of excess real estate both in and out of Las Vegas that could be used for future development, both for ourselves or in a partnership,” he said. “There’s lots and lots of entities that would like to get close to or on the Vegas Strip.”

Exactly which properties could be sold is unknown. It’s likely that these venues would be sold as casino leasebacks, similar to what MGM is currently doing.

It’s an exciting time in Las Vegas. More companies are now being given the opportunity to own property in this city.

More casino leasebacks could be coming soon. Stay tuned for more updates over the next few months!