Last year, Eldorado announced that it would like to merge with Caesars. Both companies agreed to it. However, the merger also has a big disadvantage: Caesars has to part with some casinos due to the merger. This also applies to Eldorado. We clarify why this is the case and which casinos will be sold.
This Is How the Merger Is Going To Happen
Caesars was not the only company that had to divest itself of casinos.
Federal Trade Commission had required Eldorado to sell two properties.
That was a prerequisite for approval.
However, compared to Caesars' casino sales, the Eldorado group was dictated to whom it would sell.
The proud new owner is Twin River Worldwide Holdings.
Other authorities have also already given their approval, which is why the merger will soon go through.
The largest part of the purchase sum will be transferred.
The remaining amount will be paid via a transfer of shares.
In total, Eldorado will pay $18 billion to Caesars.
Once the merger is complete, Eldorado will own 51 percent of the combined company.
However, Caesars has other ideas for maintaining its own foothold in the U.S.
Furthermore, Caesars would like to take off in the online market.
The latter also seems to make sense in view of the numerous closures during the Corona pandemic.
Nobody can estimate how the pandemic will continue.
Online offers are in no way affected by this and are available to the player at any time.
New Casino to Replace Sales
Caesars is planning to rebuild the existing Harrah's New Orleans.
The planned remodel will cost $325 million. It will take several years to complete the luxury remodel.
The new opening is planned for 2024.
Thus, the new casino resort will have a new tower, which will house 340 rooms.
In addition, an entire floor will be reserved for culinary delights.
The remodeling will definitely pay off for Caesars.
In New Orleans, Caesars is the only casino operator.
Thanks to this monopoly position, the costs of the conversion will soon pay for themselves.
Experts believe 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 stores have also been integrated.
Caesars Launches in the Online Sector
Caesars laid the foundation for online casinos last year by buying William Hill.
The Caesars group beat out its competitor Apollo and is looking to take off with William Hill's digital offering.
However, the truth is that Caesars has no interest in William Hill's UK market.
Therefore, this part was sold to Apollo.
William Hill primarily offers sports betting.
With this, Caesars can expand its existing online casinos.
So far, Caesars Online Casino only offers exciting slots.
William Hill, on the other hand, has also been presenting table games for quite some time.
If the complete range is taken over, the company will actually take off in the online sector.
This can also be seen as a compensation for the lost online casinos.
Caesars Southern Indiana Casino, for example, provides more than 1,200 slot machines.
The profits generated from these machines probably cannot be offset via the online offering.
It could also be problematic that this casino already offers sports betting from William Hill.
If this remains, the buyer would become a serious competitor to Caesars.