Eldorado Resorts

Eldorado Resorts is an American hotel and casino entertainment company founded and based in Reno, Nevada that operates 23 properties across 11 U.S. states.[4]

Eldorado Resorts
Public
Traded as
IndustryGaming & hospitality
FateMerger with Caesars Entertainment Corporation pending
FoundedMay 24, 1973 (1973-05-24)
HeadquartersReno, Nevada, U.S.
Key people
Anthony Carano (COO and President)
Gary Carano (Chairman)
Thomas Reeg (CEO)
Revenue $2.1 billion[1] (2018)
$95.2 million[1] (2018)
Total assets$5.9 billion[1] (2018)
Total equity$1.0 billion[1] (2018)
OwnerCarano family (14%)
Others (86%)[2]
Number of employees
18,700[3] (2018)
Websiteeldoradoresorts.com

The Caesars and Eldorado merger is expected to be completed in early 2nd quarter in 2020.

History

The company traces its history back to the development of the Eldorado Hotel in Reno, which was opened on May 24, 1973 by a group of investors that included Don Carano and other members of the Carano family.[5][6][7]

On July 28, 1995, the Eldorado opened the adjacent Silver Legacy Resort Casino in partnership with Circus Circus Enterprises.[8]

The Eldorado companies were reorganized in 1996 as Eldorado Resorts LLC in connection with a $100-million bond offering.[9][10]

In 2005, the company took over the bankrupt Hollywood Casino Shreveport in Louisiana, buying a 76 percent stake in the property for $154 million.[11] It was then rebranded as the Eldorado Casino Shreveport.[12]

In 2013, Eldorado agreed to combine with the publicly traded MTR Gaming Group in a reverse merger.[13][14] The merger would add three racinos in Ohio, Pennsylvania, and West Virginia to Eldorado's portfolio.[15] The transaction closed on September 19, 2014, creating Eldorado Resorts Inc. in its present form.[16] Eldorado's existing owners held 50.2 percent of the combined company, and Gary Carano was appointed as its chairman and CEO.[16]

In November 2015, Eldorado bought Circus Circus Reno and the 50% stake in the Silver Legacy that it did not already own from MGM Resorts International for $73 million.[17][18]

In May 2017, Eldorado acquired Isle of Capri Casinos for $1.7 billion in cash, stock, and assumed debt, adding twelve casinos to its holdings.[19]

In February 2018, Eldorado agreed to sell Presque Isle Downs and Lady Luck Casino Vicksburg to Churchill Downs, Inc. for a total of $230 million.[20] The sale of the Lady Luck was later canceled because of antitrust concerns, and Eldorado instead agreed to sell the operations of Lady Luck Casino Nemacolin to Churchill Downs.[21] Both sales were completed in 2019.[22][23]

In August 2018, Eldorado bought the Grand Victoria Casino in Illinois for $328 million.[24][25] Two months later, Eldorado acquired the operating business of Tropicana Entertainment for $640 million, adding seven casinos to its portfolio. Gaming and Leisure Properties simultaneously purchased the real estate of five of the casinos and leased them to Eldorado for a total of $88 million per year.[26][27][28] Additionally, Eldorado paid $246 million for the real estate underlying Tropicana's Lumière Place casino in Missouri.[26]

In March 2019, it was reported that Eldorado was discussing a merger with Caesars Entertainment.[29] On June 23, 2019, Caesars accepted Eldorado's offer to purchase the company for $18 billion in stock and cash.[30] Eldorado operated 26 assets compared to Caesars, which controlled 53.[31] Eldorado would change its name to Caesars Entertainment after the completion of the acquisition, and the companies' loyalty programs would be combined under the Caesars Rewards brand. Eldorado's key executives would be retained. The deal is expected to be completed in the first half of 2020.[32]

With the Caesars acquisition pending, Eldorado sold three properties (Lady Luck Casino Caruthersville, Mountaineer Casino Racetrack and Resort and Isle Casino Cape Girardeau) to Vici Properties and Century Casinos for a total of $385 million, with Vici acquiring the real estate assets and Century acquiring the operating businesses.[33] Eldorado also agreed to sell Lady Luck Casino Vicksburg and Isle of Capri Casino Kansas City to Twin River Worldwide Holdings for $230 million.[34] The deals were intended to reduce Eldorado's debt level and avert potential antitrust issues in Missouri, where Eldorado and Caesars together owned 6 of the state's 13 casinos.[35]

In April 2020, Twin River Worldwide Holdings agreed to buy Shreveport Resort and Casino in Shreveport, Louisiana, and MontBleu Resort Casino & Spa in Lake Tahoe, Nevada.[36][37][38]

On June 26, 2020, the Federal Trade Commission approved the sale of Eldorado Resorts to Caesars Entertainment.[39]

List of properties

The properties owned and operated by Eldorado Resorts are:

The following properties are operated by the company and leased from Gaming and Leisure Properties:

Former properties

References
  1. Form 10-K: Annual Report (Report). Eldorado Resorts. March 1, 2019. p. 31 – via EDGAR.
  2. Form 14A: Proxy Statement (Report). Eldorado Resorts. April 25, 2018. p. 9 – via EDGAR.
  3. Form 10-K: Annual Report (Report). Eldorado Resorts. March 1, 2019. p. 11 – via EDGAR.
  4. "Properties". Eldorado Resorts. Retrieved 2018-10-11.
  5. Form 10-K: Annual Report (Report). Eldorado Resorts. March 1, 2019. p. 1 – via EDGAR.
  6. "Eldorado Hotel granted license". Nevada State Journal. UPI. May 25, 1973 – via Newspapers.com.
  7. "Planned for downtown location: $6.2 million Reno luxury hotel complex". Reno Evening Gazette. July 17, 1972 – via Newspapers.com.
  8. Don Cox (July 28, 1995). "It's Legacy's big day". Reno Gazette-Journal – via Newspapers.com.
  9. Form S-4: Registration of Securities (Report). Eldorado Resorts LLC. September 12, 1996. p. 4 – via EDGAR.
  10. John Stearns (August 21, 1996). "Eldorado raises $100M". Reno Gazette-Journal – via Newspapers.com.
  11. John Hill (July 20, 2005). "Eldorado resorts takes over Hollywood casino". The News-Star. Monroe, LA – via Newspapers.com.
  12. Cristina Rodriguez (October 26, 2005). "Eldorado Casino Shreveport shuts to begin changeover". Reno Gazette-Journal – via Newspapers.com.
  13. "MTR Gaming, Eldorado Resorts agree to merge". Las Vegas Review-Journal. AP. September 9, 2013. Retrieved 2019-03-18.
  14. Form 424B3: Prospectus (Report). MTR Gaming Group. June 16, 2014. p. 155 – via EDGAR.
  15. Thomas Ott (September 11, 2013). "Presque Isle owner, hurt by casinos in Ohio, OKs merger". The Plain Dealer. Cleveland, OH – via NewsBank.
  16. John Guerriero (September 20, 2014). "MTR Gaming merger with Eldorado now official". Erie Times-News. Retrieved 2014-11-27.
  17. Stutz, Howard (November 24, 2015). "Eldorado completes $72.5M purchase of MGM's Reno properties". Las Vegas Review-Journal. Retrieved November 24, 2015.
  18. Higdon, Mike (November 24, 2015). "It's official: Eldorado Resorts buys Circus Circus and Silver Legacy". Reno Gazette-Journal. Retrieved November 24, 2015.
  19. Diana Barr (May 2, 2017). "Eldorado completes Isle of Capri buyout, names Alberici exec to board". St. Louis Business Journal. Retrieved 2018-04-23.
  20. Jason Hidalgo (March 1, 2018). "Eldorado Resorts agrees to sell two casinos in Pennsylvania and Mississippi". Reno Gazette-Journal. Retrieved 2018-04-23.
  21. Marty Finley (July 9, 2018). "Churchill Downs Inc. terminates plan to purchase casino". Louisville Business First. Retrieved 2018-07-13.
  22. "Churchill Downs completes purchase of Presque Isle Downs & Casino". Erie Times-News. January 12, 2019. Retrieved 2019-01-12.
  23. Billy Kobin (March 9, 2019). "Churchill Downs buys Lady Luck Casino Nemacolin in Pennsylvania". The Courier-Journal. Louisville, KY. Retrieved 2019-03-11.
  24. Corilyn Shropshire (April 16, 2018). "Elgin's Grand Victoria Casino to sell for $327.5 million". Chicago Tribune. Retrieved 2018-04-23.
  25. "Eldorado Resorts completes acquisition of Grand Victoria Casino" (Press release). Eldorado Resorts. August 7, 2018. Retrieved 2018-08-07 – via Business Wire.
  26. "Eldorado Resorts completes Tropicana Entertainment acquisition" (Press release). Eldorado Resorts. October 1, 2018. Retrieved 2018-10-11 – via BusinessWire.
  27. "Gaming and Leisure Properties, Inc. completes previously announced acquisition of the real estate assets of Tropicana Entertainment" (Press release). Gaming and Leisure Properties. October 1, 2018. Retrieved 2018-10-11.
  28. Sam Karlin (October 5, 2018). "Belle of Baton Rouge changes hands for $18 million as part of Tropicana acquisition". The Advocate. Baton Rouge, LA. Retrieved 2018-10-11.
  29. Roumeliotis, Greg (Mar 17, 2019). "EXCLUSIVE-Eldorado Resorts, Caesars explore merger". CNBC. Retrieved March 18, 2019.
  30. Roumeliotis, Greg (June 23, 2019). "Eldorado Resorts clinches $18 billion cash and stock deal for Caesars: sources". Reuters. Retrieved June 23, 2019.
  31. Hidalgo, Jason (June 23, 2019). "Report: Eldorado Resorts merging with Caesars in $18 billion deal". Reno Gazette-Journal. Retrieved June 23, 2019.
  32. "Stockholders Approve Eldorado's Acquisition of Caesars". www.ktvn.com. Retrieved 16 November 2019.
  33. Bailey Schulz (December 6, 2019). "Eldorado Resorts closes 3 property sales for $385M". Las Vegas Review-Journal. Retrieved 2019-12-08.
  34. Bailey Schulz (July 11, 2019). "Eldorado Resorts to sell 2 properties in preparation of Caesars deal". Las Vegas Review-Journal. Retrieved July 23, 2019.
  35. Brendan Crowley (November 18, 2019). "IOC says no changes expected in Boonville after owner buys Caesars". Boonville Daily News. Retrieved 2019-12-08.
  36. https://www.inquirer.com/news/ballys-atlantic-city-sale-acquisition-twin-river-caesars-vici-20200424.html
  37. https://www.kolotv.com/content/news/Eldorado-Resorts-selling-Montbleau-casino-at-Stateline-569929791.html
  38. https://www.nevadaappeal.com/news/eldorado-resorts-to-sell-tahoes-montbleu-louisiana-casino-for-155-million/
  39. https://www.reviewjournal.com/business/casinos-gaming/federal-trade-commission-clears-eldorado-caesars-deal-2061683/
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