{"id":128204,"date":"2020-02-27T00:39:07","date_gmt":"2020-02-27T08:39:07","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=128204"},"modified":"2020-02-27T09:26:18","modified_gmt":"2020-02-27T17:26:18","slug":"eldorado-ceo-reeg-tells-analysts-caesars-deal-will-be-a-home-run","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/eldorado-ceo-reeg-tells-analysts-caesars-deal-will-be-a-home-run\/","title":{"rendered":"Eldorado CEO Reeg Tells Analysts $17.3 Billion Caesars Deal Will be a ‘Home Run’ for All Stakeholders"},"content":{"rendered":"

Eldorado Resorts CEO Tom Reeg told analysts Wednesday on the gaming company\u2019s fourth quarter earnings call that all is going well with his company\u2019s planned merger with Caesars Entertainment.<\/p>\n

\"\"
Could Eldorado Resort brands like Isle of Capri, seen above at the Isle of Capri Casino Hotel Bonneville in Missouri, go by the wayside when the company closes its deal with Caesars? CEO Tom Reeg said it’s likely the Eldorado casinos will gravitate toward Caesars brands. (Image: Eldorado Resorts)<\/figcaption><\/figure>\n

Reeg noted that more investors are taking an interest in Eldorado after its $17.3 billion dollar deal with Caesars, which will give the Reno-based company a majority stake in the new venture. The new company will retain the Caesars name, but Eldorado executives will run it.<\/p>\n

“We\u2019re extremely confident in every number that we have put in front of you,\u201d <\/strong>he said.\u00a0\u201cWe\u2019re constantly finding new levers within Caesars to pull as we go forward. This transaction is going to be a home run for all of our stakeholders and we\u2019re excited to get started.\u201d<\/strong><\/p>\n

\n

One of the first priorities for the new Caesars company once the merger closes \u2013 which Reeg expects will take place \u2013 will be to sell one of the company\u2019s properties on the Las Vegas Strip. Reeg reiterated that the sale would not take place until \u201cwe own Caesars.\u201d<\/p>\n<\/div>\n

An agreement to sell would likely follow within the first 12 months after that, he added.<\/p>\n

Besides selling a Strip property, Reeg added, the company will need to sell a Lake Tahoe property. But aside from that, he doesn\u2019t expect Caesars or Eldorado to have to divest of anything else to gain regulatory approvals.<\/p>\n

Once complete, Reeg noted the company\u2019s Eldorado branded casinos will likely \u201cgravitate\u201d toward Caesars brands.<\/p>\n

\u201cThat\u2019s obviously a big draw in terms of what was appealing about Caesars as a company,\u201d he added. \u201cI would expect we become heavy with\u2026 Caesars would be just the highest-end properties. But I would expect to see a lot of our assets change into Horseshoe or Harrah’s over time.\u201d<\/p>\n

Sportsbook Issues Still Being Discussed<\/h2>\n

As Eldorado and Caesars officials work on closing their deal, one of the remaining items that needs to be addressed is who will operate the new company\u2019s sports betting operations. While Caesars has an established sportsbook, Eldorado has an existing agreement with William Hill to operate its sportsbooks.<\/p>\n

Based on what Reeg told analysts Wednesday, it appears not much has changed since he spoke with Casino.org earlier in the month<\/a> after the Iowa Racing and Gaming Commission gave its approval on the merger.<\/p>\n

The thought is more what can it become now that we\u2019re bringing all the Caesars assets into it,\u201d Reeg told analysts. \u201cI would not expect it to take until 2021, but I also wouldn’t expect it to happen three weeks from now.\u201d<\/p><\/blockquote>\n

While the company has quelled talk of growing internationally, Eldorado officials do see some potential for investing in Caesars US properties. Two that Reeg mentioned specifically Wednesday were Indiana Grand and Hoosier Park.<\/p>\n

When Indiana passed its expanded gaming law last year, it allowed the two racinos to offer table games<\/a> six month earlier than previously planned. So far, it\u2019s been a tremendous success for the venues, both of which are less than an hour from Indianapolis.<\/p>\n

\u201cWe see significant opportunity at the tracks in Indiana,\u201d he said. \u201cIf you look at the performance to date from the tables, it\u2019s off the charts. It\u2019s obviously early, but they were a capacity constraint there.\u201d<\/p>\n

Earnings, Income Down Compared to Strong 2018 4Q<\/h2>\n

Regarding its earnings, Eldorado reported a total of $592.1 million for its net revenue for the quarter. That marked a 4.4 percent decrease from the 2018 fourth quarter. Operating income for the final three months of 2019 fell by 32.2 percent to $58.9 million.<\/p>\n

However, the company\u2019s adjusted EBITDA rose by .4 percent to $146.2 million.<\/p>\n

Anthony Carano, Eldorado\u2019s president and COO, told analysts the company was pleased with the results, since the 2018 fourth quarter was a highly successful period for the company.<\/p>\n

CFO Bret Yunker said the company paid $388 million on its term loan, bringing the total debt reduction for 2019 to more than $700 million. That will help as the company looks to raise funds to close the Caesars transaction.<\/p>\n

\u201cWe have everything on track to take our committed financing out to market in the coming weeks and\u2026 in light of recent debt issuances in the sector, we are eager to see where that lands in terms of execution relative to our original expectations,\u201d<\/strong> Yunker said.<\/p>\n

Eldorado stock, listed at NASDAQ, fell $4.22, or 7.6 percent, in Wednesday trading to $51.40.<\/p>\n","protected":false},"excerpt":{"rendered":"

Eldorado Resorts CEO Tom Reeg told analysts Wednesday on the gaming company\u2019s fourth quarter earnings call that all is going well with his company\u2019s planned merger with Caesars Entertainment. Reeg noted that more investors are taking an interest in Eldorado after its $17.3 billion dollar deal with Caesars, which will give the Reno-based company a […]<\/p>\n","protected":false},"author":45,"featured_media":128205,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,33810],"tags":[],"acf":[],"yoast_head":"\nEldorado CEO Reeg Tells Analysts Caesars Deal Will be a 'Home Run'<\/title>\n<meta name=\"description\" content=\"Once the deal closes later this year, Tom Reeg noted the company\u2019s Eldorado branded casinos will likely \u201cgravitate\u201d toward Caesars brands.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Eldorado CEO Reeg Tells Analysts Caesars Deal Will be a 'Home Run'\" \/>\n<meta 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