The merger between Caesars Entertainment and Eldorado Resorts, which has been in progress for over a year, is now completed! The deal was practically sealed when it received approval from the Nevada Gaming Control Board (NGCB) and Nevada Gaming Commission (NGC) in Nevada last week.
Eldorado Resorts is technically purchasing Caesars Entertainment for $17.3 billion in what is considered a merger. Despite this, the globally recognized brand name of Caesars will be retained by the merged company.
The union between Eldorado Resorts, based in Reno, and Caesars Entertainment, based in Las Vegas, signifies a significant deal among casino operators in both northern and southern Nevada. The amalgamation of these two national and regional casino operators results in the establishment of the largest casino and entertainment company in the US.
Once the merged company liquidates some redundant properties in several markets, it will possess and manage over 55 casino properties globally. This portfolio currently comprises eight casino-resorts located on the Vegas Strip.
Tom Reeg, CEO of Caesars Entertainment, Inc., expressed satisfaction at the completion of the transformative merger, which has now positioned the company as a leading figure in the gaming and hospitality industry. He enthusiastically anticipates capitalizing on the numerous future opportunities to generate value for all stakeholders.
Reeg, formerly the CEO of Eldorado Resorts, is set to assume CEO responsibilities at Caesars from Tony Rodio. Rodio, who will stay on as an advisor within the company, has familiarity with both organizations. He has prior experience with Tropicana Entertainment, a company that Eldorado Resorts acquired and is currently a part of Caesars Entertainment.
Get ready to say goodbye to at least one Caesars Las Vegas casino
Reeg stated that the company has been contemplating the sale of at least one Caesars Las Vegas casino since the deal’s inception in 2019, within two years following the merger’s completion. He reiterated this idea to the NGCB last week, indicating that a Las Vegas casino sale might occur within the next 12 months.
Last year, a real estate developer purchased the Rio All-Suite Hotel & Casino from Caesars. The company currently holds a lease for its sole off-strip property until 2021. The new owner is given the choice to either maintain the lease or part ways with Caesars.
The two Caesars Las Vegas casinos, Planet Hollywood and Bally’s, are frequently rumored to be up for sale. There is a possibility that Hard Rock International might acquire one of these properties, paving the way for the return of the Hard Rock Hotel & Casino to Las Vegas.
William Hill to operate Caesars Nevada sportsbooks
Nevada sports bettors will have fewer options for finding the best odds. Last week, the NGCB and NGC gave William Hill approval to take over the operations of Caesars’ sportsbooks.
William Hill oversees over 100 sportsbooks in Nevada. The company plans to expand its extensive portfolio of locations within the state by introducing the following retail sportsbooks:
- Caesars Palace
- The Cromwell
- Bally’s
- Flamingo
- The Linq
- Harrah’s Las Vegas
- Harrah’s Laughlin
- Harvey’s Lake Tahoe
- Paris Las Vegas
- Planet Hollywood
- Rio
A few minor modifications will occur at Caesars sportsbooks in Nevada. Betting kiosks will be added to all retail sites by William Hill. Additionally, the odds boards at some Caesars facilities will be updated by the company. Apart from The Cromwell, William Hill also plans to accept pari-mutuel horse racing bets at all Caesars sportsbooks in Nevada.
In due course, a new Caesars sports betting application dubbed Caesars Sportsbook by William Hill will be launched. The forthcoming app will integrate William Hill’s technology with the Caesars Rewards loyalty club. Further details about this new application are expected to be disclosed shortly.
Caesars Rewards is expanding
This merger could potentially have a significant impact on Caesars Rewards, the largest casino loyalty club. The addition of approximately 10 million members from Eldorado Resorts’ One Club, Top Advantage, Club GVC, and Fan Club will increase the size of Caesars Rewards. Members of these clubs will have the ability to connect their respective players clubs to Caesars Rewards.
The unification of the two clubs will take approximately one year. During this time, One Club members can avail some benefits from Caesars Rewards. In the recent meetings, this was termed as “Caesars Rewards Light” by Reeg.
Existing Caesars Rewards members could see the most significant change in terms of complimentary rooms. They may have to compete with up to 10 million new customers for the same number of complimentary rooms.
The heightened competition might pose a challenge for current members to secure a “complimentary” room. Although it remains to be seen if the new Caesars will augment the quantity of free rooms, all indications suggest otherwise.
Eldorado Resorts is seeking methods to cut costs by at least $500 million. It may not be possible to offer more free room nights at their Las Vegas resorts.
Say goodbye to some Caesars buffets
During earnings calls for the first quarter, Reeg and Rodio both stated that buffets don’t generate revenue. Reeg even revealed during last week’s hearings that each buffet causes the companies to lose approximately $3 million annually. Therefore, Caesars could potentially save $120 million by cutting down on 40 buffets across the nation.
Many Nevada casinos have shut down buffets as a potential measure to curb the spread of COVID-19, and it seems many will not reopen. However, high-end buffets such as Bacchanal at Caesars Palace are expected to reopen, with Eater Las Vegas reporting a projected reopening in late August. This would succeed the reopening of other upscale (and pricey) buffets at Wynn and Cosmopolitan.
