Caesars Entertainment Explained

Caesars Entertainment, Inc.
Former Name:Eldorado Resorts, Inc. (1996–2020)
Type:Public
Hq Location:Reno, Nevada, U.S.
Revenue:$11.5 billion[1]
Revenue Year:2023
Net Income:$828 million
Net Income Year:2023
Assets:$33.4 billion
Assets Year:2023
Equity:$4.7 billion
Equity Year:2023
Num Employees:51,000[2]
Num Employees Year:2023

Caesars Entertainment, Inc., formerly Eldorado Resorts, Inc., is an American hotel and casino entertainment company founded and based in Reno, Nevada, that operates more than 50 properties.[3] Eldorado Resorts acquired Caesars Entertainment Corporation and changed its own name to Caesars Entertainment on July 20, 2020.

History

1973–2000

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.[4] [5] [6]

On July 28, 1995, the Eldorado opened the adjacent Silver Legacy Resort Casino in partnership with Circus Circus Enterprises.[7]

The Eldorado companies were reorganized in 1996 as Eldorado Resorts LLC in connection with a $100 million bond offering.[8] [9]

2000–2020

In 2005, the company took over the bankrupt Hollywood Casino Shreveport in Louisiana, buying a 76 percent stake in the property for $154 million.[10] It was then rebranded as the Eldorado Casino Shreveport.[11]

In 2013, Eldorado agreed to combine with the publicly traded MTR Gaming Group in a reverse merger.[12] [13] The merger would add three racinos in Ohio, Pennsylvania, and West Virginia to Eldorado's portfolio.[14] The transaction closed on September 19, 2014, creating Eldorado Resorts Inc. in its present form.[15] Eldorado's existing owners held 50.2 percent of the combined company, and Gary Carano was appointed as its chairman and CEO.

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.[16] [17]

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.[18]

In August 2018, Eldorado bought the Grand Victoria Casino in Illinois for $328 million.[19] [20] 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.[21] [22] [23] Additionally, Eldorado paid $246 million for the real estate underlying Tropicana's Lumière Place casino in Missouri.

In early 2019, Eldorado sold Presque Isle Downs and the operations of Lady Luck Casino Nemacolin to Churchill Downs, Inc. for a total of $179 million.[24] [25]

In March 2019, it was reported that Eldorado was discussing a merger with Caesars Entertainment.[26] In June 2019, Caesars accepted Eldorado's offer to purchase Caesars for $18 billion in stock and cash.[27] Eldorado operated 26 assets compared to Caesars, which controlled 53.[28] 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 was expected to be completed in the middle of 2020.[29]

Since 2020

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.[30] Eldorado also sold Lady Luck Casino Vicksburg and Isle of Capri Casino Kansas City to Twin River Worldwide Holdings for $230 million.[31] 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.[32]

In April 2020, Eldorado agreed to sell Eldorado Shreveport and the MontBleu casino in Lake Tahoe to Twin River.[33] [34] [35]

On June 26, 2020, the Federal Trade Commission approved Eldorado's acquisition of Caesars.[36] The transaction was completed on July 20 for $8.5 billion in cash and stock.[37] [38]

In April 2021, the company acquired the sports betting company William Hill for $3.7 billion.[39] [40] Most of William Hill's offerings in the U.S. would be rebranded as Caesars Sportsbook.[41] In September 2021, Caesars agreed to sell William Hill's European business to 888 Holdings for $3 billion.[42]

In Indiana, the company was required to sell three of its properties as a condition of approval of the Caesars merger. In 2021, the operating businesses of Tropicana Evansville and Caesars Southern Indiana were sold to Bally's Corporation (the former Twin River Worldwide Holdings) and the Eastern Band of Cherokee Indians, respectively, for a total of $390 million.[43] [44]

In July 2021, Caesars sold its casinos in Europe and Africa (the former London Clubs International) to an affiliate of Silver Point Capital.[45] [46]

In February 2022, Caesars Entertainment announced a multi-year deal which named the organisation as the official sportsbook partner of the NBA's Cleveland Cavaliers.[47] The company opened a 10,355 square foot retail sportsbook at Rocket Mortgage FieldHouse, the home of the Cavaliers.[48] In November 2022, Caesars was added to the list of "Best Employers for Veterans" by Forbes.[49] [50]

In August 2023, ESPN announced a new agreement with rival Penn Entertainment to launch a branded sportsbook business under the ESPN Bet branding. This triggered an escape clause in Caesars' existing partnership with ESPN.[51] [52] [53]

In September 2023,[54] Scattered Spider (also known as UNC3944) breached Caesars data through an outside IT vendor via ransomware.[55] and demanded $30 million in ransom. Caesars Entertainment paid half, $15 million. The cyberhacking group was able to access driver's license numbers and possibly Social Security numbers, for a "significant number" of Caesars customers.[54] While casino and hotel computer operations were unaffected, Caesars was unable to guarantee the security of the personal information [56] of its 65 million loyalty rewards members. Hotel and casino loyalty rewards records may include those of Caesars Palace, The Cromwell, The Flamingo, The Horseshoe, The LINQ Hotel & Casino, Paris Las Vegas, Planet Hollywood Resort & Casino, Harrah's Las Vegas, and the Rio All-Suite Hotel & Casino.[57] The same cyberattack group targeted the MGM Grand Las Vegas later that month.[54]

In June 2024, Caesars Entertainment has acquired WynnBet’s Michigan iGaming operations, enhancing its presence in the state's online gaming market.[58] This acquisition from Wynn Resort includes a long-term extension for market access rights with the Sault Ste. Marie Tribe of Chippewa Indians. Caesars will continue using the WynnBet brand initially but plans to transition to its own platform in late 2024. The acquisition supports Caesars' growth in the iGaming sector and reinforces its commitment to regulated markets.[59] Additionally, Caesars Sportsbook has launched in North Carolina on the lands of the Eastern Band of Cherokee Indians.

In August 2024, Caesars Entertainment announce the sale of the World Series Of Poker brand to NSUS Group inc, the operator behind online poker site GGPoker for $500 millions, $250 millions in cash and $250 millions to be paid in 5 years. As a part of this deal, Caesars has secured the right from NSUS to continue hosting the WSOP’s flagship live tournament series at its Las Vegas casinos for the next 20 years.

List of properties

The properties owned and operated by Caesars Entertainment are:[60]

Western United States

Las Vegas Strip

Midwest

South

Atlantic

§ Properties are operated by the company under a lease or a management agreement:

Former properties

External links

Notes and References

  1. Form 10-K: Annual Report. Caesars Entertainment. February 20, 2024. 64–66. EDGAR.
  2. Form 10-K: Annual Report. Caesars Entertainment. February 20, 2024. 10. EDGAR.
  3. Web site: Properties. Eldorado Resorts. 2018-10-11. 2021-02-10. https://web.archive.org/web/20210210220523/https://www.eldoradoresorts.com/properties. dead.
  4. Form 10-K: Annual Report. Eldorado Resorts. March 1, 2019. 1. EDGAR.
  5. News: Eldorado Hotel granted license. Nevada State Journal. UPI. May 25, 1973. Newspapers.com.
  6. News: Planned for downtown location: $6.2 million Reno luxury hotel complex. Reno Evening Gazette. July 17, 1972. Newspapers.com.
  7. News: It's Legacy's big day. Reno Gazette-Journal. Don Cox. July 28, 1995. Newspapers.com.
  8. Form S-4: Registration of Securities. Eldorado Resorts LLC. September 12, 1996. 4. EDGAR.
  9. News: Eldorado raises $100M. Reno Gazette-Journal. John Stearns. August 21, 1996. Newspapers.com.
  10. News: Eldorado resorts takes over Hollywood casino. The News-Star. Monroe, LA. John Hill. July 20, 2005. Newspapers.com.
  11. News: Eldorado Casino Shreveport shuts to begin changeover. Reno Gazette-Journal. Cristina Rodriguez. October 26, 2005. Newspapers.com.
  12. News: MTR Gaming, Eldorado Resorts agree to merge. Las Vegas Review-Journal. AP. September 9, 2013. 2019-03-18.
  13. Form 424B3: Prospectus. MTR Gaming Group. June 16, 2014. 155. EDGAR.
  14. News: Presque Isle owner, hurt by casinos in Ohio, OKs merger. The Plain Dealer. Cleveland, OH. Thomas Ott. September 11, 2013. NewsBank.
  15. News: MTR Gaming merger with Eldorado now official. Erie Times-News. John Guerriero. September 20, 2014. 2014-11-27.
  16. News: Stutz. Howard. Eldorado completes $72.5M purchase of MGM's Reno properties. November 24, 2015. Las Vegas Review-Journal. November 24, 2015.
  17. News: Higdon. Mike. It's official: Eldorado Resorts buys Circus Circus and Silver Legacy. November 24, 2015. Reno Gazette-Journal. November 24, 2015.
  18. News: Eldorado completes Isle of Capri buyout, names Alberici exec to board. St. Louis Business Journal. Diana Barr. May 2, 2017. 2018-04-23.
  19. News: Elgin's Grand Victoria Casino to sell for $327.5 million. Chicago Tribune. Corilyn Shropshire. April 16, 2018. 2018-04-23.
  20. Eldorado Resorts completes acquisition of Grand Victoria Casino. Eldorado Resorts. August 7, 2018. Business Wire. 2018-08-07.
  21. Eldorado Resorts completes Tropicana Entertainment acquisition. Eldorado Resorts. October 1, 2018. BusinessWire. 2018-10-11.
  22. Gaming and Leisure Properties, Inc. completes previously announced acquisition of the real estate assets of Tropicana Entertainment. Gaming and Leisure Properties. October 1, 2018. 2018-10-11.
  23. News: Belle of Baton Rouge changes hands for $18 million as part of Tropicana acquisition . The Advocate. Baton Rouge, LA. Sam Karlin. October 5, 2018. 2018-10-11.
  24. News: Churchill Downs completes purchase of Presque Isle Downs & Casino. Erie Times-News. January 12, 2019. 2019-01-12.
  25. News: Churchill Downs buys Lady Luck Casino Nemacolin in Pennsylvania. The Courier-Journal. Louisville, KY. Billy Kobin. March 9, 2019. 2019-03-11.
  26. News: EXCLUSIVE-Eldorado Resorts, Caesars explore merger. Roumeliotis. Greg. Mar 17, 2019. CNBC. March 18, 2019. June 26, 2019. https://web.archive.org/web/20190626213605/https://www.cnbc.com/2019/03/17/reuters-america-exclusive-eldorado-resorts-caesars-explore-merger-sources.html. dead.
  27. News: Roumeliotis. Greg. Eldorado Resorts clinches $18 billion cash and stock deal for Caesars: sources. June 23, 2019. Reuters. June 23, 2019.
  28. Web site: Report: Eldorado Resorts merging with Caesars in $18 billion deal. Hidalgo . Jason . June 23, 2019. Reno Gazette-Journal. June 23, 2019.
  29. Web site: Stockholders Approve Eldorado's Acquisition of Caesars . www.ktvn.com . 16 November 2019 . en.
  30. News: Eldorado Resorts closes 3 property sales for $385M. Las Vegas Review-Journal. December 6, 2019. Bailey Schulz. 2019-12-08.
  31. News: Eldorado sells 2 properties ahead of Caesars merger. Las Vegas Review-Journal. Bailey Schulz. July 2, 2020. 2020-07-02.
  32. News: IOC says no changes expected in Boonville after owner buys Caesars. Boonville Daily News. Brendan Crowley. November 18, 2019. 2019-12-08.
  33. Web site: Adelman. Jacob. Bally's in Atlantic City to be acquired by Rhode Island-based gaming group Twin River. 2020-11-23. inquirer.com. en-US.
  34. Web site: Staff. Eldorado Resorts selling MontBleu casino at Stateline. 2020-11-23. kolotv.com. en.
  35. Web site: Northern Nevada Business Weekly. Eldorado Resorts to sell Tahoe's MontBleu, Louisiana casino for $155 million. 2020-11-23. nevadaappeal.com. en-US.
  36. Web site: 2020-06-26. Federal Trade Commission clears Eldorado, Caesars deal. 2020-11-23. Las Vegas Review-Journal. en-US.
  37. News: Caesars and Eldorado close $8.58 billion merger. Wall Street Journal. Katherine Sayre. July 20, 2020. 2020-10-03.
  38. Web site: Eldorado Resorts to buy Caesars Entertainment for about $8.5 billion . 2022-12-19 . CNBC . en.
  39. News: Caesars to buy William Hill for $3.7 billion in sports-betting drive. Reuters. Tanishaa Nadkar. September 30, 2020. 2020-09-30.
  40. Caesars Entertainment announces completion of William Hill PLC acquisition. 2021-04-22. MarketWatch.
  41. News: Caesars Entertainment reveals sports betting rebranding move. Las Vegas Review-Journal. Colton Lochhead. August 2, 2021. 2021-09-25.
  42. News: Caesars selling William Hill non-U.S. assets in $3B deal. Las Vegas Review-Journal. Colton Lochhead. September 9, 2021. 2021-09-25.
  43. Bally's Corporation completes acquisition of Tropicana Evansville casino. Bally's Corporation. June 4, 2021. 2021-06-06.
  44. News: Caesars Southern Indiana casino officially under new ownership after closing of $250M deal . Ben Tobin . September 3, 2021 . The Courier-Journal . Louisville, KY . September 3, 2021.
  45. Metropolitan Gaming announces completion of acquisition of Caesars UK and Africa assets. Metropolitan Gaming. August 4, 2021. 2021-12-29. PR Newswire.
  46. News: Metropolitan Gaming acquires Caesars' Europe and Africa casino businesses. iGamingBusiness. Robert Fletcher. August 5, 2021. 2021-12-29.
  47. Web site: Marc Bona . cleveland com . 2022-02-24 . Cleveland Cavaliers, Caesars Entertainment ink deal for sports betting venue in Rocket Mortgage FieldHouse . 2023-02-20 . cleveland . en.
  48. 25 February 2022. Caesars announces sports betting partnership with Cleveland Cavaliers. IGaming Business. 30 March 2022.
  49. Web site: Horner . Charlie . 2022-11-14 . Caesars Entertainment honored for veteran employer status - SBC Americas . 2023-01-10 . en-US.
  50. Web site: BRIER" . "ELISABETH . America's Best Employers For Veterans 2022 . 2023-01-10 . Forbes . en.
  51. Web site: Novy-Williams . Eben . 2023-08-09 . ESPN’s $2B Penn Deal Means DraftKings, Caesars Cash Cut . 2024-08-09 . Sportico.com . en-US.
  52. Web site: 2023-08-31 . ESPN show 'Daily Wager' leaving Las Vegas Strip, returning to Bristol . 2024-08-09 . . E.W. Scripps Company . en.
  53. Web site: Cohen . Andrew . 2023-08-10 . ESPN to Leave Caesars’ Las Vegas Studio After PENN Agreement . 2024-08-09 . Front Office Sports . en.
  54. Web site: 2023-09-14 . Caesars Entertainment says it was also a victim of a cyberattack . 2024-05-31 . NBC News . en.
  55. News: Caesars Entertainment Paid Millions to Hackers in Attack . 31 May 2024 . September 13, 2023.
  56. News: Two Vegas casinos fell victim to cyberattacks, shattering the image of impenetrable casino security . 31 May 2024 . AP . Associated Press.
  57. Web site: Caesars Hotels loyalty programme customers impacted by data breach . Hotel Management Network . Verdict Media Limited . 31 May 2024.
  58. Web site: 20 February 2024 . Caesars Entertainment Partners with Sault Ste. Marie Tribe of Chippewa Indians; Acquires Michigan iGaming Operations from Wynn Resorts . caesars.com.
  59. Web site: Skelker . Joseph . 24 June 2024 . Caesars Entertainment Acquires WynnBet's Michigan iGaming Operations . casinoreviews.net.
  60. Form 10-K: Annual Report. Caesars Entertainment. February 24, 2022. 27–28. EDGAR.
  61. News: Belle of Baton Rouge finalizes sale, now both downtown riverboat casinos share an owner. The Advocate. Baton Rouge, LA. Timothy Boone. May 5, 2022. 2022-05-11.
  62. News: Shreveport's Eldorado Resort Casino gets new owners. KSLA-TV. December 23, 2020. 2020-12-23.
  63. Caesars Entertainment and Vici Properties complete sale of Harrah's Louisiana Downs. Caesars Entertainment. November 1, 2021. PR Newswire. 2021-11-03.

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