Caesars parted ways with some casinos
Last year Eldorado announced that it would like to wants to merge with Caesars. Both companies agreed to this. However, the merger also has a major disadvantage: Caesars has to separate from some casinos due to the merger. This also applies to Eldorado. We clarify why this is so and which casinos are being sold.
Sale to prevent monopoly position
As soon as two large gambling groups merge or a corporation takes over another company, this must be controlled and approved bysome bodies. This is intended to prevent the competition requirement from being no longer complied with. In the case of Caesars and Eldorado, more than 60 percent of all casinos in the state of Indiana would have belonged to the newly founded company. This would not have achieved a monopoly position. Nevertheless, this fact led to the fact that the Indiana Gaming Commission feared that it would lead to a monopoly. Because of this, this commission only approved if Caesars parted ways with some casinos.
Caesars had offered to sell two casinos. This was not enough for the Commission and it was decided thatthree casinos should be sold. Although the merger between the two corporations is not yet complete, both have made the following choices together:
- Casino in Hammond and in Evansville
- Caesar's Southern Indiana Casino
The latter has already found a buyer namelyEastern Band of Cherokee Indians . This corporation was willing to pay $250 million. The company is guaranteed to benefit from this purchase as the casino moved to a new building just a year ago. This building was built for 85 million euros and offers numerous table games and slot machines on an area of over 9000 square meters. Such a spacious casino resort attracts numerous visitors and overnight guests.
This is how the merger works
Not only Caesars had to separate from the casinos. Federal Trade Commission had required Eldorado to sell two properties. That was the condition for approval. However, compared to Caesars casino sales, theCorporation Eldorado was told who to sell to. The proud new owner is called Twin River Worldwide Holdings.
Other authorities have also already given their approval, which is why the merger will take place soon. Most of the purchase price is transferred. The remaining amount will be made througha transfer of shares. In total, Eldorado will pay Caesars $18 billion. Once the merger is complete, Eldorado will own 51 percent of the joint venture.
Caesars, however, has other ideas to keep its footing in the USA. Furthermore,Caesars would like to take off on the online market. The latter also makes sense given the numerous closures during the Corona Pandemic. Nobody can predict how the pandemic will continue. Online offers are not affected by this and are available to the player at any time.
New casino to replace sales
Caesars plans to rebuildHarrah's New Orleans. The planned renovation will cost $325 million. It takes a few years to carry out the luxury conversion. The reopening is planned for 2024. The new casino resort is to receive a new tower that will accommodate 340 rooms. In addition, an entire floor is reserved for culinary delights.
The conversion is definitely worthwhile for Caesars. In New Orleans, Caesars is the only casino operator. Thanks to thisMonopoly position, the costs of the conversion will soon be amortized. Experts assume that the new casino will be as luxurious as Caesars Palace in Las Vegas. The Palace was built in the style of an ancient Roman palace and offers almost 4,000 suites and rooms. The casino area extends over 15 hectares and numerous shops have also been integrated.
This is how Caesars takes off in the online sector
Caesars laid the foundation for online casinos last year,by buying William Hill. Caesars has outperformed its competitor Apollo and wants to launch William Hill's digital offering. However, Caesars has no interest in William Hill's UK market. Therefore this part was sold to Apollo.
William Hill primarily offers sports betting. This allows Caesars to expand its existing online casinos. So far there are only exciting slots in Caesars Online Casino. William Hill, on the other hand, has also been presenting table games for a long time. If the entire range is taken over, the company actually takes off in the online sector. This can also be seen ascompensation for the lost online casinos. The Caesars Southern Indiana Casino, for example, has more than 1200 slot machines available. The profits generated with these devices can probably not be offset via the online offer. It could also be problematic that this casino already offers sports betting from William Hill. If this persists, the buyer would become a serious competitor to Caesars.