Eldorado hints sports betting spinoff after Caesars deal
The casino company Eldorado Resorts is considering the option of separating the sports betting and online businesses when the deal is completed.
US.- Eldorado Resorts and Caesars Entertainment are close to finishing a merger that will create the US largest casino owner. The CEO of Eldorado, Tom Reeg, said that he is considering the option of separating the sports betting and online gambling businesses after the deal closes next year.
Reeg discussed the option of the spinoff as he considers them to be fast-growing operations that can recover if separated. “They’ve got an internet casino business that is a material business that I think really gets little to no value,” Reeg said, according to BNN Bloomberg. “I’m starting to think about it. Is there a way to structurally put something together that shines a light on that business? More of a pure-play fashion.”
The US$17.3 billion merger deal with Caesars, which includes debt, will reach completion sometime in the first half of 2020. The company could reduce some of the debt by separating the sports business. Reeg believes that currently they’re not properly enjoying the potential.
Reeg also said that the company will likely sell a casino on the Las Vegas Strip next year. Some experts believe that the casino that the company will sell is Planet Hollywood.
The merger
The operators revealed that upon completion of the transaction the combined company will retain the Caesars name. The move is to capitalise on the value of the iconic global brand and its legacy of leadership. The new company will continue to trade on the Nasdaq Global Select Market.
The agreement includes that VICI Properties and Eldorado agreed that the former will acquire the real estate associated with Harrah’s Resort Atlantic City, Harrah’s Laughlin Hotel & Casino, and Harrah’s New Orleans Hotel & Casino for approximately US$1.8 billion.
