Casino operator Eldorado Resorts has agreed to sell its Eldorado Resort Casino in Shreveport, Louisiana to Maverick Gaming as the Reno, Nevada-based company prepares for a $17.3 billion tie-up with rival Caesars Entertainment Corp.
Maverick is set to pay $230 million in cash for the Shreveport gambling venue, subject to a working capital adjustment.
The transaction is subject to regulatory approvals, the closure of Eldorado’s merger with Caesars, and other customary closing conditions. The deal is expected to close at some point in 2020.
News about Maverick purchasing a property from Eldorado arrive just a month after the Las Vegas-based owner of regional gaming assets finalized the acquisition of the gaming and non-gaming assets of CC Gaming, the largest casino operator in Colorado. With the closure of the transaction, Maverick added Z Casino in Black Hawk, Grand Z Casino Hotel in Central City, Johnny Z’s Casino in Central City, and the Z Stop Convenience Store and Gas in Golden to its portfolio of properties.
While Maverick has been on the acquisition trail over the past year, with the purchase of Eldorado’s Shreveport casino being the latest of a series of acquisition deals announced recently, Eldorado has been offloading properties as part of its preparations to merge with Caesars in a deal that will create the largest US operator of land-based casinos.
Maverick Adds More Gambling Positions to Existing Offering
With the purchase of Eldorado Resort Casino Shreveport, Maverick is adding more than 1,500 slot machines and a number of table games to its existing offering. The Las Vegas-based company was founded in 2017 by a team of casino industry veterans and as already noted has been looking to expand its presence in regional markets across the US with the purchase of multiple properties in recent months.
Commenting on their decision to sell their Shreveport casino complex, Eldorado CEO Tom Reeg said that their agreement to divest that particular property was “consistent with our continued focus on reducing debt ahead of the expected closing for the Caesars transaction in the first half of 2020.”
While Eldorado is set to combine with a casino operator with solid presence across the US as well as international markets, it should be noted that Caesars is stepping into its marriage with Eldorado with a massive debt, the result from a nightmare bankruptcy.
News about Eldorado divesting its Shreveport property emerge less than a month after the company received the green light from the Louisiana Gaming Control Board to move its Isle of Capri Casino Lake Charles onto dry land. Eldorado plans to build a nearly $113 million casino between the existing parking lot and hotel that are part of its Isle of Capri riverboat casino complex.
The new land-based facility will spread over 72,000 square feet of land and will feature 1,271 slot machines and 46 table games as well as a VIP Lounge and dining outlets.
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