Eldorado Resorts Inc. and Caesars Entertainment Corp recently completed their merger, but there are still some steps to complete. The deal was worth $17.3 billion, and the two companies had to go through several organizations before the deal was finalized.
The deal was first announced more than a year ago, but many major organizations had to sign off on the acquisition. Now that the deal is finally official, Eldorado Resorts Inc. is set to take over Caesars, but they will be forming a new “Caesars” company.
Even though Eldorado now owns several former Caesars properties, the deal is much more complicated than that. As a part of this deal, the new company is forced to sell some properties so that they don’t create a monopoly in the industry.
Indiana is one of the states where this deal is still confusing, and the new company will be looking to sell at least three of the five properties that they own. Four of the casinos bring in the most gross gaming revenue in the state, and the new company will have some tough decisions ahead as to which properties they are willing to sell.
The Indiana Gaming Commission went ahead and approved the merger between these two casino industry giants, but they require that three properties be sold. The Indiana Gaming Commission is requiring the new company to sell at least three properties before the end of the New Year.
According to sources, it appears that the new company has already identified the three properties that it plans to sell. The casinos that will be sold are Horseshoe Hammond, Caesars Southern Indiana, and Tropicana Evansville.
Even though these three properties brought in a ton of revenue during the previous fiscal year, it’s unclear if the new company will be able to find a bidder for these properties. The ongoing coronavirus pandemic has scared some suitors away, and the new company could be scrambling to meet the current deadline.
More Time Could Be Offered
The Indiana Gaming Commission could give the new company more time to find buyers, but that will take a vote from the commissioners. The IGC will require at least one property to be sold within the next six months, but they are willing to give the company up to 18 months to complete the sale of all three properties.
The IGC is worried that the new company will neglect the three properties that will be up for sale over the next 18 months, and that could hurt the state in terms of potential revenue. The new company is not expected to make any significant upgrades to any of the properties, and that could chase some potential customers away.
One of the reasons that the IGC is worried about the status of these three properties is because the state of Illinois is starting to expand its gaming industry. Potential customers in the state of Indiana could cross over into Illinois to place their casino bets, or dive into the recently launched sports betting industry.
Several members of the IGC also worry that this deal could turn into a political debate, making the sale of these properties much harder. The federal government has not given states like Indiana much relief from the coronavirus pandemic, and that could affect the number of potential bidders on the casinos.
Each property that is up for sale is considered a tourist attraction rather than just a casino, which could help bring in more suitors. The hope is that a potential buyer will invest large amounts of money to transform these properties to be able to compete with neighboring states.