Caesars Entertainment and Eldorado Resorts Complete Merger

Gird your loins, Caesars Entertainment and Eldorado Resorts have completed their merger.

The $17.3 billion merger makes Caesars Entertainment the largest casino company in the U.S.

In honor of the newly-consummated merger, the company rolled out a new logo. We are not making this up.

Caesars new logo

Props to Caesars for giving a drunk fourth grader the opportunity to revamp the company’s formerly-iconic logo.

Caesars Entertainment (and the company formerly known as Eldorado Resorts) now owns and operates more than 55 casinos worldwide. Naturally, we only care about the eight in Las Vegas.

The companies will combine their loyalty clubs under the Caesars Rewards brand. Caesars Rewards will have 60 million members, many of them super excited to see which perks will be reduced first.

It’s been a wild ride for Caesars and Eldorado since the merger was announced back in June 2019. Despite the skeptics, including us, the two companies have made good on their ambitious plans, even smack dab in the middle of a pandemic.

Caesars Palace shrine

This is the place where Caesars and Eldorado executives pray for a successful merger.

The company’s final merger hurdle was surmounted July 17, 2020, with approval by regulators in New Jersey.

Given the final green light, Caesars and Eldorado wasted no time in completing the merger. One of the reasons: Eldorado was obligated to pay $2.3 million a day in “ticking fees” for every day the deal was delayed. Those fees started amassing back in late March 2020.

Had the deal not gone through, Eldorado would’ve been on the hook for bajillions. Rough estimate.

Caesars Palace Las Vegas

The first Caesar was Julius Caesar. Everyone else was just infringing upon his trademark. Caesars Palace was inspired by Nero, debaucherywise.

As soon as the Caesars and Eldorado merger was approved, layoffs reportedly began at Caesars, with more on the way.

Company officials have said they’ll look for at least $500 million in “synergies” from the merger. “Synergies” rarely bode well for employees of an acquired company.

While we tend to look on the bright side of things, there are so many red flags with the Caesars/Eldorado merger, it looks like a Moscow Victory Day parade.

For starters, the merger involves a $7.2 billion cash payout by Eldorado. The company is already highly leveraged, and the future is uncertain given the aforementioned pandemic.

Eldorado has weathered the COVID-19 storm better than many in the casino industry (thanks, regional casinos), but there’s a long, unpredictable slog ahead.

Caesars Entertainment, too, has a lot of debt. The company has paid $1.3 billion in annual net interest on its debt in each of the last two years.

Combined, the two companies will have about $19 billion in debt.

Caesars

Make sure to rub his finger for good luck. His finger. Freak.

That said, the companies are optimistic, so let’s just go with that!

Disastrous logo aside, there’s potential upside of the merger if Eldorado shakes things up at Caesars Entertainment.

Caesars is expected to sell of a couple of its Strip casinos, and that could lead to some new competition by entities who aren’t already players in Las Vegas.

We hear Planet Hollywood is likely to be sold, and Cromwell has also had its tires kicked by potential suitors.

The bottom line: This is easily the weirdest time in history to do a casino merger. Or any merger, really.

Here’s hoping the Caesars Entertainment and Eldorado Resorts merger defies the odds and shakes things up to the benefit of casino guests and stockholders.

Vegas loves when a longshot pays off.

12 thoughts on “Caesars Entertainment and Eldorado Resorts Complete Merger

  1. John Mueller

    Unfortunately they will have to change their name because Ceasar killed a few folk. i like them using “Ceasars” instead of ED. What is with the 2 gold necklaces? Messy. I own ED stock as well as PENN.

    Reply
  2. Mike Alexakis

    Somewhere, likely near a buffet, Gary Loveman is snickering… 19 billion in debt is his kind of deal. I am wired differently than a big CEO, I pay off my credit cards each month, I dont owe anyone anything, if I lose money on the golf course I reach into the wallet and dole it out. Bankroll management is one of my big strengths as a poker player, never get in over your head, if your luck is bad go home, there is always another day…

    Reply
    1. high honor

      If I were handing out credit ratings, I’d give you an excellent score of 845. Congratulations, Michael! You deserve it! Plus, it’s big of you to pay off your debts when you lose a bet. That says a lot about you as a man.

      Reply
      1. Mike Alexakis

        Credit ratings are very important, and in the modern world your kids basically inherit your credit rating at first, then their subsequent actions dictate where it goes. I have tried my best to get my kids to live within their means and not miss or be late on payments, so far so good… Its important for young people to drive cars that they can afford, the biggest mistake I see many people including my friends make is driving fancy cars with super high payments, I do live in the Los Angeles area…

        Reply
          1. BST

            So yeah- sorry Mike – don’t know how I replied to you with that 🙁 LOL but since I am here great job at teaching your kids the importance of living within their means 🙂 we need more parents to do that .

          2. Mike Alexakis

            If Caesars promised to install three ply toilet tissue I would strongly consider them, my booty appreciates lavish treatment… Last thing I want to be in Las Vegas is naked and afraid…

  3. Jeremy

    Kind of interesting that they are looking to sell off the Cromwell being that it is surrounded by all other Caesar’s properties (Flamingo, Bally’s, Caesars). It isn’t really my favorite place in the world and I usually stroll right on by it since it switched from Bill’s Gambling Hall but geographically it is an interesting decision. I really hope this merger doesn’t negatively impact the rewards club. I’ve been staying at Caesar’s properties 1-2 times per year for about the last 15 years and the one thing Caesar’s has been good at is providing complimentary rooms. I have been thinking a lot recently of switching my loyalty to MGM and if the complimentary rooms go away there isn’t much allure to stay with Caesar’s.

    Reply
  4. Miles

    Isn’t the AE in Caesars supposed to close together? you’d think the logo would be the one easy place to highlight that

    Reply
  5. Jenn In Las Vegas

    Caesars lost me when they eliminated plastic straws. Will the new owners bring back “unsustainable” plastic wares? I strongly recommend that they do so. But given our whacko woke world, I suggest they do so quietly.

    Reply
    1. woke

      If the voice of human values and attitudes concerning environmental consciousness, and the movement against social injustice–especially racism–bothers you, then just maybe you have much bigger issues than sucking your soda from a plastic straw.

      Reply

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