The merger between Caesars Entertainment and Eldorado Resorts is now finalized! This collaboration has been under development for over a year. The last hurdle was cleared when the Nevada Gaming Control Board (NGCB) and Nevada Gaming Commission (NGC) gave their approval last week, making the deal official in Nevada.
Eldorado Resorts is technically purchasing Caesars Entertainment for $17.3 billion in what is being termed as a merger. Despite the merger, the globally recognized brand name of Caesars will be retained by the combined company.
The union of casino operators Eldorado Resorts, based in Reno, and Caesars Entertainment, based in Las Vegas, signifies a merger between representatives from both northern and southern Nevada. This amalgamation of two regional and national casino operators births the largest casino and entertainment company in the US.
Once the merged company sells some of its duplicate properties in various markets, it will own and manage in excess of 55 casino properties globally. This portfolio includes eight casino-resorts on the Vegas Strip, at least for the time being.
Tom Reeg, CEO of Caesars Entertainment, Inc., expressed satisfaction at completing the transformative merger that positions them as the foremost leader in gaming and hospitality. He conveyed eagerness to capitalize on the numerous upcoming opportunities to generate value for all stakeholders.
Reeg, the former CEO of Eldorado Resorts, is set to assume the role of CEO at Caesars, taking over from Tony Rodio. Rodio will stay on at the company in an advisory capacity. Having previously been employed by Tropicana Entertainment, Rodio is well-acquainted with both companies. Tropicana was acquired by Eldorado Resorts and is now incorporated into Caesars Entertainment.
Get ready to say goodbye to at least one Caesars Las Vegas casino
Reeg stated that the company had been considering selling at least one of Caesars Las Vegas casinos since the deal was first thought of in 2019, within two years of the merger’s completion. He reaffirmed this idea to the NGCB last week, but also suggested that a sale could potentially occur within 12 months.
Last year, a real estate developer bought the Rio All-Suite Hotel & Casino from Caesars. Caesars has a lease on this, its only property off-strip, until 2021. The new owner can either maintain the lease or part ways with Caesars.
There are frequent speculations about Planet Hollywood and Bally’s, two of the Caesars Las Vegas casinos, being up for sale. It is speculated that Hard Rock International may purchase one of these properties to reestablish the Hard Rock Hotel & Casino in Las Vegas.
William Hill to operate Caesars Nevada sportsbooks
Nevada sports bettors will have fewer options to choose the best odds as William Hill has been approved by both the NGCB and NGC to take over operations of Caesars’ sportsbooks last week.
William Hill manages over 100 sportsbooks in Nevada and will be expanding its extensive list of locations in the state by adding the following retail sportsbooks:
- Palace of Caesar
- Cromwell
- Bally’s
- Flamingo
- The LINQ
- Las Vegas’s Harrah’s
- Laughlin’s Harrah
- Lake Tahoe’s Harvey
- Las Vegas Paris
- Hollywood Planet
- Rio
William Hill is set to implement a few minor alterations to Caesars sportsbooks in Nevada. Betting kiosks will be added to all retail locations, and the odds boards at some Caesars establishments will be updated. In addition to these changes, William Hill also plans to accept pari-mutuel horse racing bets at all Caesars Nevada sportsbooks, with the exception of The Cromwell.
Eventually, a new Caesars sports betting app, Caesars Sportsbook by William Hill, will be launched. This upcoming app will combine the technology of William Hill with the loyalty club, Caesars Rewards. Further details regarding the new app are expected to be disclosed shortly.
Caesars Rewards is expanding
This merger could potentially impact Caesars Rewards, one of the largest changes being that the biggest casino loyalty club would expand with the inclusion of approximately 10 million members from Eldorado Resorts’ One Club, Top Advantage, Club GVC, and Fan Club. These club members will have the opportunity to connect their respective players clubs with Caesars Rewards.
The two clubs are expected to fully merge in approximately a year. Until then, One Club members will be able to avail some benefits of Caesars Rewards. Reeg, in the previous week’s special meetings, referred to this as “Caesars Rewards Light.”
Existing Caesars Rewards members might find the most significant change to be related to complimentary rooms. They could potentially be competing with up to 10 million new customers for the same amount of complimentary rooms.
The surge in competition may pose a challenge for current members to book a “free” room. Whether the new Caesars will expand the quantity of complimentary rooms remains to be seen, but all indicators suggest this is unlikely.
Eldorado Resorts is exploring methods to cut costs and save a minimum of $500 million. It may not be possible to increase the number of complimentary room nights at their Las Vegas resorts.
Say goodbye to some Caesars buffets
During the first-quarter earnings calls, Reeg and Rodio both commented that buffets don’t generate revenue. Reeg stated in last week’s hearings that each buffet causes the companies to lose approximately $3 million annually. By cutting down on 40 buffets nationwide, Caesars could potentially save $120 million.
Many Nevada casinos have shut down buffets to potentially curb the transmission of COVID-19, and it seems that many will remain closed. However, high-end buffets such as Bacchanal at Caesars Palace are expected to reopen. According to Eater Las Vegas, this specific buffet is projected to resume operations towards the end of August, following the pattern of other expensive buffets at Wynn and Cosmopolitan that have already reopened.
