One’s joy, the other’s sorrow. This saying also applies to the gambling industry. The merger with Eldorado meant that Caesars had to part with three casinos. The new owners are looking forward to buying such successful resorts.
The gaming group Caesars Entertainment and Eldorado Resorts merged in 2020. This amalgamation should result in the creation of the largest gaming company. Eldorado was willing to pay $ 18 billion for this. Such a large merger has to be approved by various bodies – in the background of a distortion of competition. One of the responsible bodies was the Indiana Gaming Commission, which only approved the takeover on one condition:
The new gambling company has to part with three casinos that are located in the state of Indiana. If this did not happen, Caesars and Eldorado would have a share of more than 60 percent in this state. This would create a kind of monopoly position. The commission left which casinos may be sold to the combined gaming group, in which Caesars only has a 49 percent stake.
The two companies Eldorado and Caesars have decided to sell the following casinos:
- Caesars Southern Indiana
- Hammond Casino
- Casino in Evansville
Further approvals for the Eldorado deal are still missing
The news that Caesars is separating from three casinos arouses the impression that the merger has already been fully completed. Basically, that’s not right. The New Jersey Casino Commission has not yet given its approval.
Only in the recent past have other commissions given their approval. In some cases this also happened on the condition that Eldorado Casinos gave up. Two properties were therefore sold to Twin River Worldwide Holdings.
The employees of the affected casinos usually do not have to worry about their jobs. Most committees attached their conditions to the fact that no staff were laid off.
The next deals and renovations are pending
Caesars took over William Hill last year. This deal also has to be confirmed by many bodies. Again it is about competitiveness and consumer protection. It is true that William Hill is a British bookmaker. But even taking over this could become too strong competition for other companies in the USA. The takeover of William Hill should be completed in March of this year. The main reason for the takeover of William Hill is that Caesars wants to be more active in the online sector.
The only question is whether the takeover of William Hill will be as exciting as the merger between Eldorado and Caesars. The major merger between the two groups is mostly cash. The not insignificant amount of $ 77 million will be postponed by shares.
But this news is far from over. Caesars has another message in store: Caesars wants to convert Harrah’s New Orleans. For this, the group is ready to spend 325 million US dollars. This price includes a new tower with 340 rooms and the expansion of the second floor. New restaurants, bars and more are to be integrated into this. After the renovation, the resort will be called Caesars New Orleans.