Eldorado Resorts Might Sell Tahoe Casino after Purchasing Caesars
Eldorado Resorts plans to sell one-off its Lake Tahoe casino buildings when it gets its $17.3 billion acquisition of Caesars Entertainment Corp. As soon as the deal is finished, Eldorado Resorts will have three Lake Tahoe sites; the MontBlue, Harrah’s Tahoe and Harvey’s Resort. The three sites are situated in the South Lake region. This portion of Nevada is one of the state’s smallest gaming scenes.
Operators in Nevada recorded a gaming win of $937.47 million in November. According to the Nevada Gaming Commission (NGC) about $518 million of that amount is attributable to Las Vegas Strip. The Lake Tahoe area gathered for almost $15.6 million. The first quarter of 2020 is when the Eldorado deal is expected to presume.
Tom Reeg, Eldorado CEO, has not specified a certain Lake Tahoe property that will be sold when the deal with Caesars is closed. It doesn’t look like Harvey’s will be up for sale. This is because Caesars presented a $41 million guestroom makeover at this site.
Eldorado will likely want to keep that asset because Harrah’s is one of the largest grossing South Shore buildings. Executives in the sector and experts on the Northern Nevada market state it’s likely the company may sell two venues in the region to cut down market saturation and raise capital. Eldorado could look into portfolio pruning in the Tahoe because it can give the business the ability to focus on more lucrative markets. Data states that the gross gaming income in that portion of Nevada has struggled as of late.
Eldorado will run four casinos after they make the deal with Caesars. Asset sales there have not been announced as yet.
The moment the information about Caesars acquisition was available, Wall Street assumed that along with Northern Nevada, Louisiana could be a region that Eldorado thinks about. Eldorado current gained acceptance to bring its Isle of Capri riverboat casino in the Pelican State ashore.