Eldorado Resorts Selling Louisiana Casino to Maverick Gaming
Maverick Gaming LLC is acquiring the Eldorado Resort and Casino in Shreveport, Louisiana, Eldorado Resorts Inc. announced in a news release. The Las Vegas-based company has been purchasing small casinos and is buying the Shreveport property from Eldorado Resorts for $230 million.
Maverick Gaming previously purchased CC Gaming LLC in December 2019, a deal that included four Colorado properties: Z Casino, Grand Z Casino Hotel, Johnny Z’s Casino and Z Stop. The Shreveport deal marks the first venture by Maverick Gaming in Louisiana.
Eldorado Resorts Inc. announced in 2019 that it was merging with Caesars Entertainment, a deciding factor on selling the Shreveport casino. The Eldorado Casino took in $8.7 million in winnings in November 2019, a 9.5% decrease compared to November 2018. The Shreveport gambling hall employs more than 1,200 people.
Eldorado Resorts Inc. will merge with Caesars Entertainment this year. Chief executive officer of Eldorado, Tom Reeg, commented on the selling of the Shreveport casino, a transaction pending regulatory approval.
“The agreement to divest the Eldorado Shreveport is consistent with our continued focus on reducing debt ahead of the expected closing for the Caesars transaction in the first half of 2020,” said Reeg, according to a report by The Advocate of Baton Rouge.
In June, Eldorado Resorts Inc. announced a merger with Caesars Entertainment. The deal is worth approximately $17.3 billion and includes Caesars’ $9 billion of debt. Eldorado will part with 77 million in stock shares and $7.2 billion in cash. The Eldorado-Caesars merger reportedly created the largest gaming company in the U.S. market
Combined, Eldorado Resorts and Caesars Entertainment own 60 casinos in 16 states. The two companies will function under the Caesars brand and will be led by Eldorado’s executives.
Eldorado-Caesars Louisiana Properties
Louisiana casinos saw a revenue decline in 2019 compared to the previous year, down 10% overall. When the merger struck in June, experts expected Louisiana to be a region where the companies could divest properties to lower concentration and raise cash.
Though the Shreveport casino is being sold, there are several other gambling halls that will remain with Eldorado Resorts Inc. and Caesars Entertainment. This includes the Eldorado-owned properties The Belle of Baton Rouge and Isle of Capri Casino.
Once the merger goes through, Eldorado will own Harrah’s casino in New Orleans as well as two other Caesars properties that include Harrah’s Louisiana Downs and Horseshoe in Bossier City.
For the last several years, Caesars Entertainment has seen financial troubles, even declaring bankruptcy in 2015. Combined, Eldorado and Caesars are estimating that they will save $500 million in the first 12 months once the merger goes through.
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