Much, much bigger.
Earlier this week, Eldorado bought out Caesar’s for a record $17.3 billion. The two combined will become the largest gambling company in the U.S. The ramifications and impact on bettors and members should start being felt as early as the first half of 2020 when the proposal gets approved by the gaming companies’ shareholders.
The merger also includes a deal and merger with VICI Properties. VICI real estate company will acquire property that is associated with Harrah’s Resort in Atlantic City, Harrah’s Laughlin Hotel and Casino, and Harrah’s New Orleans Hotel & Casino.
The question now becomes how much is this going to change the gambling industry, in particular Caesar’s, which is one of the most popular casinos in America and was on the verge of bankruptcy before Eldorado came in to save them. Now after suffering in debt, they will be swimming in money with Eldorado.
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What Does This Mean for Caesar’s?
For one, there’s going to be a lot more of Caesar’s casinos around the country. The name is staying Caesar’s, although most of the management will be controlled by Eldorado since they are the buyer in the deal.
Eldorado has 26 gambling properties in the U.S., from the West Coast to the East Coast. Given the fact that Harrah’s and Bally’s is also in on the merger since they joined forces with VICI, there will now be 60 Caesar’s locations nationwide for customers. This is opening Caesar’s sportsbooks in states like Illinois, Indiana, and Iowa, once approved. With Harrah’s and Bally’s now under Caesar’s control, there will be four Caesar’s casinos in Atlantic City.
As gambling becomes legal state by state, Caesar’s will likely be opening up new casinos nationwide. It’s only going to grow, just like the betting industry.
What Will Happen to the Reward Program?
There are millions of members in the Caesar’s rewards and loyalty program who are probably panicking as a result of this merger. My advice to them? Calm down.
Caesar’s loyalty members will still be able to use their rewards to get deals on hotels and casinos. And with 60 properties nationwide, all locations will accept club members from both Eldorado and Caesar’s.
As things move forward, there could be changes made as El dorado management will control things, and history has shown they’re not as “reward friendly” as Caesar’s. Plus, Caesar’s was in a major financial hole and had to be dug out of debt, so Eldorado could look at cutting promotions down the road if they’re not bringing in the money. However, for the short term, El Dorado wants to make the transition smooth and an enjoyable one for members of both El Dorado and Caesar’s and all members should have nothing to worry about. Their rewards and deals will still be honored everywhere.
What Does This Mean for Gambling?
The biggest impact will be that Caesar’s is going to spread more nationwide and will be sponsored by a lot more groups. ElDorado uses William Hill as its sportsbook operator and also has a partnership with The Stars Group. Meanwhile, Caesar’s is partnered with ESPN and has helped promote DraftKings. So assuming there are no ties lost, there is likely going to be a big media blitz with Caesar’s and expect ElDorado to pump a lot more money into DraftKings, which has become incredibly popular over the last couple years.
Is This a Good Deal?
Time will tell. The most positive impact will be Caesar’s exposure as they are likely to be promoted by Fox and ESPN. This will be rewarding for both Caesar’s and the sports betting world. Anytime you can get those two media giants on your side, it’s only going to positively impact the sports betting industry.
Caesar’s will become much more front and center moving forward after losing a lot of money the last few years and not getting the exposure. The combination of the two brings a lot of opportunities to promote sports gambling and build casinos around the country.