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Eldorado/Caesers merger

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Used to work in IT for the Eldorado a couple of years ago. Then they were buying casinos left and right so this major purchase doesn't surprise me. They pretty much own downtown now.

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$17.3 Billion is a +++++ton of money. 

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I wonder what they'll do with the Harrahs in downtown Reno ?

the Caranos have already  reinvested into the "Row".....

I wonder if they'll be calling the shots?
We'll find out.

 

they now own all of downtown except for the Cal-Neva and the Sands.

,,,,,and the small  locals oriented  places.

 

And the owners of the GSR and the SLS (in Vegas) just bought the NHL team  AZ Coyotes.

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Really don't think this is a good idea. But I'm not a gaming exec. 

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28 minutes ago, Lester_in_reno said:

I wonder what they'll do with the Harrahs in downtown Reno ?

the Caranos have already  reinvested into the "Row".....

I wonder if they'll be calling the shots?
We'll find out.

 

they now own all of downtown except for the Cal-Neva and the Sands.

,,,,,and the small  locals oriented  places.

 

And the owners of the GSR and the SLS (in Vegas) just bought the NHL team  AZ Coyotes.

And the Cal-Neva doesn't even have a hotel anymore, so I'd basically consider it a locals oriented place.

At this point the Sands (owned by Jacobs Entertainment who is redeveloping 4th St with the Reno Neon Line) is the only non-Carano hotel downtown. 

 

It will be interesting to see what happens with Harrah's and downtown gaming in the future.

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4 hours ago, Joe from WY said:

Really don't think this is a good idea. But I'm not a gaming exec. 

It's a terrible idea from what I have read of Eldorado's management style. Seems like more nickel and diming, and taking away perks, which is rapidly killing Vegas. TBH, the Strip may finally be starting to realize they need to stop charging exorbitant "resort fees" and maybe go back to free parking and try to bring back the value tourist. Seems like piss poor timing on Caesar's part.

 

 

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Just now, SharkTanked said:

It's a terrible idea from what I have read of Eldorado's management style. Seems like more nickel and diming, and taking away perks, which is rapidly killing Vegas. TBH, the Strip may finally be starting to realize they need to stop charging exorbitant "resort fees" and maybe go back to free parking and try to bring back the value tourist. Seems like piss poor timing on Caesar's part.

 

 

Lovely. 

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43 minutes ago, SharkTanked said:

It's a terrible idea from what I have read of Eldorado's management style. Seems like more nickel and diming, and taking away perks, which is rapidly killing Vegas. TBH, the Strip may finally be starting to realize they need to stop charging exorbitant "resort fees" and maybe go back to free parking and try to bring back the value tourist. Seems like piss poor timing on Caesar's part.

 

 

For one thing, Reno is nothing like Las Vegas when it comes to exorbitant prices. Parking everywhere is still free, The Eldorado got rid of validating parking tickets in their garage about 10 years ago.

Unfortunately, as for cutting back on comps and other little "player incentives", everyone has been doing this, that alone probably doesn't really have much impact.

I play almost exclusively at the Peppermill and they cut out drink tokes entirely, which used to flow like water in the Sportsbook for regulars. I'd often make a few relatively small bets, give the writer a five spot and he'd give me 5 drink tokes. For years, I figured that my many pints of micro brew or many top shelf cocktails cost me $2 a piece. $1 for the ticket writer and $1 for the bartender.

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1 hour ago, SharkTanked said:

It's a terrible idea from what I have read of Eldorado's management style. Seems like more nickel and diming, and taking away perks, which is rapidly killing Vegas. TBH, the Strip may finally be starting to realize they need to stop charging exorbitant "resort fees" and maybe go back to free parking and try to bring back the value tourist. Seems like piss poor timing on Caesar's part.

 

 

This is an $18 BILLION deal and it’s Eldorado managements ability to save a few percentage points on guest inducements that made this deal possible? You think “nickels and dimes” was a deciding factor? Maybe it has something to do with a MUCH better but much smaller company buying a much larger company because it’s managed so poorly? Just a hunch. 

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28 minutes ago, NevadaFan said:

This is an $18 BILLION deal and it’s Eldorado managements ability to save a few percentage points on guest inducements that made this deal possible? You think “nickels and dimes” was a deciding factor? Maybe it has something to do with a MUCH better but much smaller company buying a much larger company because it’s managed so poorly? Just a hunch. 

yep, the NV Gaming Board lists the gambling wins from  every section of Nevada every month.

Never once  saw Las Vegas "getting killed" as was mentioned (no not  by you).

I hope they know what they're doing.


Seems to me Caesars has been a wayward company for a while now.

for instance they used to run Caesars Tahoe (now the Mont Bleu)  and  the Reno Hilton.

...... the people who bought the RH  11 or so  years ago   rebranded it as the GSR and renovated everything.

the GSR parking lot is usually pretty  full, esp. on weekends.

The weekday gamblers to Reno from No. Cali. are pretty much gone forever.... but everybody already knew that.

if you put a good product out there you can make money.

Also the sports book betting  aspect is just a small %.

But it seems to be gaining.

 

Like i said above "We'll see" .

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1 hour ago, Lester_in_reno said:

yep, the NV Gaming Board lists the gambling wins from  every section of Nevada every month.

Never once  saw Las Vegas "getting killed" as was mentioned (no not  by you).

I hope they know what they're doing.


Seems to me Caesars has been a wayward company for a while now.

for instance they used to run Caesars Tahoe (now the Mont Bleu)  and  the Reno Hilton.

...... the people who bought the RH  11 or so  years ago   rebranded it as the GSR and renovated everything.

the GSR parking lot is usually pretty  full, esp. on weekends.

The weekday gamblers to Reno from No. Cali. are pretty much gone forever.... but everybody already knew that.

if you put a good product out there you can make money.

Also the sports book betting  aspect is just a small %.

But it seems to be gaining.

 

Like i said above "We'll see" .

My guess is that they’ll start selling pieces of the acquisition to reduce debt. Harrah’s is probably high on the list of dumps to spin off. 

 

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11 hours ago, Lester_in_reno said:

yep, the NV Gaming Board lists the gambling wins from  every section of Nevada every month.

Never once  saw Las Vegas "getting killed" as was mentioned (no not  by you).

I hope they know what they're doing.


Seems to me Caesars has been a wayward company for a while now.

for instance they used to run Caesars Tahoe (now the Mont Bleu)  and  the Reno Hilton.

...... the people who bought the RH  11 or so  years ago   rebranded it as the GSR and renovated everything.

the GSR parking lot is usually pretty  full, esp. on weekends.

The weekday gamblers to Reno from No. Cali. are pretty much gone forever.... but everybody already knew that.

if you put a good product out there you can make money.

Also the sports book betting  aspect is just a small %.

But it seems to be gaining.

 

Like i said above "We'll see" .

Vegas is getting killed in visitation not gaming. For the last two decades, Vegas has been relying as much, if not more, on revenue other than gaming (clubs, shows, retail, dining) all of which are driven by visitation. Even if you still get a couple of guys throwing big on baccarat, it ends up hurting more if you are losing the thousands of annual visitations by the folks that don't come primarily to gamble. Across the board the reason cited for customers not coming back are the resort fees, parking fees, dining costs and lack of comps.

12 hours ago, NevadaFan said:

This is an $18 BILLION deal and it’s Eldorado managements ability to save a few percentage points on guest inducements that made this deal possible? You think “nickels and dimes” was a deciding factor? Maybe it has something to do with a MUCH better but much smaller company buying a much larger company because it’s managed so poorly? Just a hunch. 

I have no doubt Eldorado is run better than Caesar's. Hard for them not to be. My point was Vegas will need to trend more towards the value visitor to survive. Vegas pivots every decade or two. It went from gaming focused value for a long time, to the aborted "family friendly" phase, to exclusivity and luxury, then to the "fun" experience model. Problem is it stayed in the exclusive mind set, and lots of the infrastructure and theming were around that model. They need to pivot again more away from that. It's already starting actually. Based on that wsj article it seems that Eldorado's model is not in line with the value visitor.

13 hours ago, renoskier said:

For one thing, Reno is nothing like Las Vegas when it comes to exorbitant prices. Parking everywhere is still free, The Eldorado got rid of validating parking tickets in their garage about 10 years ago.

Unfortunately, as for cutting back on comps and other little "player incentives", everyone has been doing this, that alone probably doesn't really have much impact.

I play almost exclusively at the Peppermill and they cut out drink tokes entirely, which used to flow like water in the Sportsbook for regulars. I'd often make a few relatively small bets, give the writer a five spot and he'd give me 5 drink tokes. For years, I figured that my many pints of micro brew or many top shelf cocktails cost me $2 a piece. $1 for the ticket writer and $1 for the bartender.

Player comps isn't huge, but it is more of a statement thing. If you do that without cutting resort fees, minibar fees ($15 bottles of water and other insane charges), and all the other nickel and diming already going on, you lose even more people. It's not one thing in a vacuum but a cumulative effect. The locals aren't coming back until parking is free so they don't care, but you can bet someone who is an annual vacationer and was on the fence because of the fees, and now they can't get a free drink when plopping down money, is going to be lost for good. It's just a different dynamic than Reno, as you point out.

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1 hour ago, SharkTanked said:

Vegas is getting killed in visitation not gaming. For the last two decades, Vegas has been relying as much, if not more, on revenue other than gaming (clubs, shows, retail, dining) all of which are driven by visitation. Even if you still get a couple of guys throwing big on baccarat, it ends up hurting more if you are losing the thousands of annual visitations by the folks that don't come primarily to gamble. Across the board the reason cited for customers not coming back are the resort fees, parking fees, dining costs and lack of comps.

I have no doubt Eldorado is run better than Caesar's. Hard for them not to be. My point was Vegas will need to trend more towards the value visitor to survive. Vegas pivots every decade or two. It went from gaming focused value for a long time, to the aborted "family friendly" phase, to exclusivity and luxury, then to the "fun" experience model. Problem is it stayed in the exclusive mind set, and lots of the infrastructure and theming were around that model. They need to pivot again more away from that. It's already starting actually. Based on that wsj article it seems that Eldorado's model is not in line with the value visitor.

Player comps isn't huge, but it is more of a statement thing. If you do that without cutting resort fees, minibar fees ($15 bottles of water and other insane charges), and all the other nickel and diming already going on, you lose even more people. It's not one thing in a vacuum but a cumulative effect. The locals aren't coming back until parking is free so they don't care, but you can bet someone who is an annual vacationer and was on the fence because of the fees, and now they can't get a free drink when plopping down money, is going to be lost for good. It's just a different dynamic than Reno, as you point out.

As I’ve said, they are going to spin off acquisitions that have strong multipliers to pay down debt and obviously grow bottom line revenue — which will be easier by efficiency in things like shared services. A company this big now has to deal with a culture war because each of these properties has its own identity. Caesars has absolutely nothing to do with a Reno property. Nothing. That said, the Carano’s run one of the best wineries on the west coast that it built from scratch. It has cut its teeth on driving value through growth and diversification. 

If I worked in management that many of these properties I’d be chitting my pants because you’re in for a wild ride over the next year or so. 

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Agree that debt load is worrisome/troublesome....

Was in Las Vegas in March  for the hoops tourneys.... I noticed Strip was still pretty packed.

They're still building  new hotels, a huge new one where the Riviera used to be ......about to go on-line.

Also agree the resorts chopped the comps way down, Food on the Strip is not particularly cheap.

I stayed at the Strat for their free parking benefit (I drove down).

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2 hours ago, SharkTanked said:

Ouch

Do they lose shares entirely or do they just have to wait a specified time period before selling?

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2 hours ago, SharkTanked said:

Ouch

That's pretty +++++ed, especially if it's not just a holding period thing like @renoskier alluded too. Typically there's a 6 month holding period for new securities, but if they're just gone, that's pretty awful. 

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