The US casino industry continues to get shaken up. Today, news broke that Twin River Worldwide Holdings agreed to purchase the renowned Bally’s casino brand from Caesars for $20 million. It’s a huge move for this company and one that will significantly expand Twin River’s portfolio.
Today, we’re going to explain what this means for both Twin River and Caesars. We’ll also look at some of the other big deals made by casino companies this year.
Let’s get into it!
Caesars is Now One of the World’s Biggest Casino Companies
The name Caesars has long-been associated with large, successful casino-resorts. The company has purchased many world-class gaming venues over the years, including ones in Atlantic City and Las Vegas. In 2019, news broke that Eldorado agreed to purchase Caesars Entertainment for an astounding $4.2 billion.
Eldorado Resorts is a large casino company in its own right. The Reno-based gaming operator has worked hard to expand over the years with casinos all over the country. News of this merger spread like wildfire, as it would quickly form the largest casino company in the United States.
Such a large deal took time to complete. Initially, hope was that it would be completed by January of 2020. That timetable was quickly pushed back. Finally, after gaining permission from various state gambling commissions and the SEC, this deal was completed.
This newly-formed merged company kept the “Caesars” name. Interestingly, Caesars has not slowed down its efforts to expand. Not long ago, Caesars announced it was taking over William Hill, one of the biggest and most successful sports betting companies in the world.
It’s clear that Caesars has big plans for the future. That doesn’t mean it’s not interested in making sales to help make up for the cost of some recent purchases. One such sale has just taken place and has taken many by surprise.
Here’s what’s happening with this company.
Bally’s Brand Has Been Taken Over by Twin River Worldwide Holdings
As we’ve already mentioned, many popular US casino companies are working hard to expand right now. This entire casino industry is in a strange place right now. Casino revenue remains lower this year than it was in 2019, yet things seem to be improving in most states.
Back in April, news broke that Twin River Worldwide Holdings purchased Bally’s Atlantic City. This was an important move in getting the Eldorado-Caesars merger complete. Caesars Entertainment needed to sell several of its properties to ensure a monopoly doesn’t form after the merger is complete.
It seems that Twin River enjoyed taking control over this Bally’s property. This week, news broke that this company officially agreed to take over the entire Bally’s casino brand for $20 million. Twin River can now use the name to rebrand all of its properties.
Twin River Worldwide is owned by Soo Kim, who’s been focused on expanding in the US for years now. He spoke about this latest move to the media this week.
“This is an opportunity for us to revive a brand that is synonymous with American gaming,” Kim said. “We appreciate Caesars giving us a chance to use a brand they really weren’t utilizing.”
This is undoubtedly a good move for Twin River and should help the company reach more players. The Bally’s brand is well-known amongst casino gamblers. Soon, all of Twin River’s properties will be utilizing this brand name.
Casino Revenue in the US Continues to Rise and Fall
Casino companies have been in a very unusual position this year. For months, all casinos around the United States were completely shut down. Most states started allowing their casinos to reopen in early summer.
Revenue earnings from this industry have been different around the country. In Nevada, casinos are still earning considerably less than they made in 2019. Fortunately, revenue reports have been coming out that show earnings are slowly increasing each month.
In Colorado, the state’s casino industry is thriving. This state’s casino revenue has been increasing since reopening a few months ago. Sports betting revenue has also been increasing here over the past couple of months.
Every state’s casino industry is performing differently. It seems that many casino companies see this as an opportunity, though. That seems to be the case with Twin River Worldwide Holdings, set to expand its newly-acquired Bally’s brand.
We’ll probably see more of these brand sales take place over the next few months. Stay tuned for updates!
Are you surprised to hear that Caesars sold its Bally’s brand? Will this help Twin River to expand in the future? Let us know in the comments section below.