Massive Shift in Land-Based Casinos in the USA

USA casinos

There is a big tremor occurring in the USA ‘brick and mortar’ gambling world, which is set to change the landscape of land-based casino entertainment, nationwide.

The iconic Caesar’s Entertainment brand is up for sale and it seems like they have met their buyer. Eldorado Resorts is said to be in the process of purchasing Caesar’s Entertainment – lock, stock and barrel in a deal that is said to total around $17.3 billion. The joining of these two casino gambling juggernauts is set to establish the biggest and most powerful gambling firm in the United States.

ELDORADO RESORTS

Eldorado Resorts is already a prominent name in the hotel and gaming business, operating 26 gambling facilities across the country. Their ambitious move will see them dominate the gambling scene in America, controlling properties under the Bally, Harrah, and Caesar’s brands, bringing its total ownership stake to 60 facilities in 16 states across the nation.

CAESAR’S ENTERTAINMENT

Caesar’s brand is most famous for its iconic Caesar’s Palace Hotel and Casino in Las Vegas, Nevada, but its status does not rest there. The Caesar’s Entertainment brand owns 53 properties worldwide, with over 200 nightlife venues, and over 300 dining outlet, globally.

Caesar’s Palace itself hosts the Omnia Nightclub; Nobu, Giada, and Hell’s Kitchen Restaurants, as well as the iconic Caesar’s Palace Theatre which has hosted huge names in the entertainment industry, such as Gwen Stefani, Celine Dion, and many more over the past 80 years. The hotel boasts 5-star lodging, spas, salons, golfing, and many other attractions.

THE DEAL

The buy-out will be concluded in both cash and stock payments. A payment of $7.2 billion is said to be negotiated with the remainder of the $17.3 billion price tag to be settled in shares dispersion. Even with the share dispersion, Eldorado and its shareholders will remain in control of 51% of the overall merged company once the deal is done.

Eldorado is set to have placed a valuation on Caesar’s shares of around $12.75 per share, even though the company had been trading on the stock exchange at around $10 towards the end of June. It has been touted that Eldorado will, however, be paying a purchase price to the tune of $8.40 a share in cash with the rest of the payment in shares as previously mentioned.

The deal comes as a result of the influence of Carl Icahn, who owns over 10% of Caesar’s shares. The control over several board seats saw Icahn appoint a new CEO who would lead in accordance with his ways. Icahn’s involvement in the company saw the share price rise well, which presented the perfect environment to sell the company on at haste. Eldorado has presented the best option going forward.

THE RESULT

This merger represents an extremely big power shift in the world of casino entertainment. Eldorado Resort’s CEO, Tom Reeg has insinuated that the coming together of these two iconic brands suitably positions them for powerful alliances with industry leaders in the sports betting and online casino gaming industries.

The company seems set on the future, identifying the digital realm as a necessary partner to march the company on to things to come. It will be interesting to see where this formidable partnership will go.

ONLINE GAMBLING

While we note that the companies are positioned to partner with leading online gambling names in the industry, are we set to see a new contender hit the digital markets? From a games provision aspect, this could be of great benefit for remote gamblers in the USA.

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