Caesars ready to unload properties along The Strip
The casino operator could be looking to get rid of one or two of its venues in Las Vegas
When Eldorado Resorts approached Caesars Entertainment about a possible merger, it made it clear that slimming operations would lead to a quicker, more lucrative deal. Eldorado has already announced that it is dumping a few properties ahead of the merger, and Caesars might now be ready to do the same.
Caesars could be ready to get rid of one or two properties along the Las Vegas Strip in anticipation of the consolidation of the two companies. It would also help to keep regulators at bay over concerns that the new entity formed from the merger might be too big. This is despite the fact that the combined companies only represent the fourth-largest gaming operation in the US.
Eldorado CEO Thomas Reeg, who will be in charge of the new entity, has asserted that a sale might be coming. He explained last month, “I would expect that we would be a seller of a strip asset, but that decision has not been made.”
If any of the seven Caesars properties on The Strip were to be sold, there are already potential buyers lined up. Both Golden Nugget and Treasure Island have expressed interest, but Treasure Island would need to raise funds to consummate any deal. The casino company’s CEO, Phil Ruffin, has said that he would need $1 billion in cash in the event any Caesars properties were to be purchased.
There is also the possibility that an entity not already operating in Las Vegas could make a play for a venue. Both Twin River Worldwide and Monarch Casino, the latter of which is based in Reno, might be interested in a Las Vegas presence.