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The country’s largest sportsbook operator and a growing Reno, Nevada-based casino company have struck a deal to become nationwide partners on mobile, online and land-based sports betting and online gambling operations.
William Hill US and Eldorado Resorts, Inc. released details of a nationwide partnership this week that will see the leading sports betting company in the US come together with a major casino group boasting 21 properties across 11 states.
Of course, Eldorado is still finalizing a deal with Tropicana Entertainment Inc. It will see Eldorado’s casino portfolio grow to 26 properties in 13 states when it closes. However, the transaction will not close until the fourth quarter of 2018.
Eldorado’s aggressive expansion
In addition to its deal to lease and take over operations at various Tropicana properties, over the past few years Eldorado has expanded further, acquiring Grand Victoria Casino in Illinois and Isle of Capri Casinos, Inc. and its portfolio of 14 US casinos.
Although, Eldorado recently finalized a deal to sell Presque Isle Downs & Casino and hand over management of its Lady Luck Casino Nemacolin in Pennsylvania to horse-racing giant Churchill Downs Incorporated.
Under the terms this new agreement, William Hill becomes Eldorado’s exclusive partner for sports betting and online gambling.
William Hill runs more than 100 of Nevada’s almost 200 sportsbooks, making it the largest sports betting operator in the state. In fact, it already runs several sportsbooks at Eldorado Resorts venues, including recently renovated operations at its Silver Legacy and Circus Circus Resort Casinos properties.
The emerging US sports betting market
Since June, legal sports betting has also launched in Delaware, New Jersey, Mississippi, and West Virginia. Plus, a number of other states, including Pennsylvania, are lining up to do the same.
William Hill US has since opened up:
- Monmouth Park Sports Book by William Hill (NJ)
- William Hill Sports Book at Ocean Resort Casino (NJ)
- The Sportsbook at Hollywood Casino at Charles Town Races (WV)
William Hill US just launched mobile sportsbook operations in New Jersey this past weekend. The company is also the exclusive risk manager for the Delaware Lottery‘s sports betting operations. Plus, it is listed as the sportsbook partner in 13 casinos in Mississippi.
Additionally, William Hill is the exclusive partner to IGT in Rhode Island. There, it plans to supply sports betting technology and services to the state lottery. Plus, it is set to run the sportsbook at Hollywood Casino at Penn National Race Course in Pennsylvania. Although, this agreement is still pending regulatory approval.
William Hill and Eldorado
Now, this latest deal will see William Hill launch sportsbooks in five Eldorado properties across three states over the next few weeks, including:
- Tropicana Atlantic City (NJ)
- The Mountaineer Casino Racetrack and Resort (WV)
- The Lady Luck Casino in Vicksburg (MS)
- Isle of Capri (MS)
- Tropicana Casino (MS)
Additionally, the pair plan to expand sportsbook and online gambling operations in states that legalize it in the near future.
Parent company William Hill PLC CEO Philip Bowcock said Eldorado opens several doors for the company across the US:
“Partnering with Eldorado gives William Hill access to one of the largest and most attractive casino footprints with 23 million customers across multiple states. This partnership provides extensive cross sell and profit growth opportunities to both parties. Together we are positioned to capture the evolving US opportunity – starting with land-based sports betting, and extending to digital sports betting and, in some states, online gaming.”
Eldorado Chairman and CEO Gary Carano called William Hill the best sports betting company in the business:
“Having worked with the company since 2012, we believe William Hill represents the gold standard in global sports betting and we are confident that our expanded partnership will be successful. We look forward to bringing the excitement of sports betting to customers across our growing platform of leading casino resorts, creating value for all shareholders.”
Exclusive online gambling and sports betting partners
Key features include William Hill becoming Eldorado’s exclusive partner for sports betting and online casino operations. The agreement covers Eldorado’s potential 26 properties across 13 states. Plus, any new properties the company acquires or develops in the future.
The deal sees William Hill US retain 80 percent of the business. Eldorado receives $50 million worth of William Hill PLC stock and a 20 percent stake in William Hill US.
The cost of building the five new sportsbooks at the existing Eldorado casino properties will be split between the two.
It’s finally final–Eldorado Resorts and Caesars Entertainment announced their merger today. The company will be called Caesars and together they will have about 60 casinos in 14 states.
This is a landmark deal by both national and Las Vegas standards. Together, they will dominate the US casino scene in size and scale.
It’s just another example of how the casino industry is constantly evolving, especially in Las Vegas.
Sometimes there are simple differences at a Las Vegas casino-resort like a new bar, restaurants or an attraction. Other times, everything about the casino is entirely different.
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A casino could change ownership, but that isn’t always noticeable from the outside. Not only are there physical changes in some casinos, but there can be an entirely new aura when walking into an old favorite.
This is happening right now in and will continue over the next few years. Let’s break down the Caesars-Eldorado news and go over all the major Las Vegas casino changes in the last few years.
Caesars-Eldorado created the world’s biggest casino company
Eldorado Resorts purchased Caesars Entertainment and will merge both company’s assets together to become the biggest gaming company in the world. Including Caesars Entertainment’s debt, the cash and stock deal is worth$17.3 billion, with 51% of the company going to Eldorado shareholders, and 49% to Caesars shareholders.
Billionaire Carl Icahn joined the Caesars board a few months and wasted no time pushing for a sale. When the deal is approved, the name of the company will be Caesars but it will be made up of the casinos from both companies.
Much to the joy of Eldorado’s player’s club members, there will be even more properties to gamble at, including access to casinos in Las Vegas for the first time. Caesars Rewards, the largest casino loyalty club in the US, will be implemented in all Eldorado Resorts properties.
The merger of these large casino operators will result in some consolidation. Properties may be sold in markets where both Eldorado and Caesars operate casinos. On a call discussing this deal, Eldorado CEO Tim Reeg said they will sell at least one Caesars property on the Vegas Strip. He didn’t even mention keeping Rio, which has reportedly been on and off the market for five years.
The deal still has to be approved by the Federal Trade Commission. Expect more changes over the next year.
Corporate consolidation
Let’s look back before looking forward. Change is nothing new to Las Vegas. In the late 1990s and early 2000s, corporate consolidation was the name of the game.
Caesars Entertainment spun off from Hilton to become Park Place Entertainment. The smaller company was purchased by Harrah’s Entertainment to make a massive casino corporation. In 2003, the name was changed to the current Caesars Entertainment.
In 2000, MGM Grand purchased Mirage Resorts. The combined casino corporation became MGM Mirage. The new company changed its name to MGM Resorts International in 2010. The company currently owns 10 casino-resorts on the Vegas Strip.
The thing about Caesars Entertainment and MGM Resorts International is they have had monopoly-like qualities. They are the giants with the impressive portfolios, the million dollar marketing campaigns, the splashy A-list music residences, the truly prime resort locations on the Strip.
Together, have been operating more than half of the casinos on the Vegas Strip for almost two decades. When Caesars was looking to sell, it’s no wonder Eldorado was salivating over the thought of snapping up these prime casinos.
Needless to say, the Las Vegas that visitors know from 10 years ago is in the middle of a major transformation. New owners, rebranded casinos and new construction will continually create a unique casino experience for guests today and tomorrow.
New blood coming to Las Vegas
The Eldorado-Caesars Entertainment deal is one example of fresh blood on and around the Vegas Strip in the next few years. We know Eldorado will sell off at least one of Caesars’ nine Vegas casino-resorts (Rio and/or Planet Hollywood have been rumored) to pay down the massive debt they’d acquire with the company.
The Cosmopolitan is an independently owned and operated casino-resort that is currently being shopped to sell.
The current owners have made a slew of changes to the property since purchasing the Cosmopolitan in 2014. A new owner won’t have to change much physically at the Cosmopolitan, but there could be small tweaks to the experience.
Just off the Vegas Strip, the HardRock will become Virgin Hotels Las Vegas next year. Sir RichardBranson, the owner of the VirginGroup, is somewhat famous for shaking things up.
The rapidly expanding hotel company currently offers free Wi-Fi, doesn’t charge resort or cancellation fees, has nightly happy hour for guests and offers simple late checkout.
Las Vegas hotel companies today are all about adding on fees for anything possible. The potential of a new hotelier offering all-inclusive rates could change how other hotels operate in Las Vegas.
Reimagining Las Vegas casinos
Some existing casinos are getting a fresh new look.
Shortly after The Park opened in between New York-New York and Monte Carlo, MGM Resorts International announced that the Monte Carlo would become Park MGM. The renovation of the entire property took nearly two years and $550 million. The whole area has a new look and feel.
Red Rock Resorts, aka Station Casinos, just renovated Palace Station and the Palms. The renovations for the latter cost nearly $700 million. Palms was purchased for $300 million in 2016. Altogether, Red Rock Resorts will have spent more than $1 billion, creating a brand-new experience at the Palms.
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SLS Las Vegas was sold in 2017 and is wrapping up a $100 million property-wide transformation. With a new casino floor, bars, restaurants and attitude, there’s an entirely new feel to the casino and hotel. And the name of the casino might change later this year.
There are two names rumored for the re-imagined property. SLS could switch back to the original name Sahara or a similar named Grand Sahara.
Casino construction continues
There was a construction boom on Vegas Strip in the early 2000s. A couple of those stalled casino projects on the north end of the Vegas Strip could finally open in the next few years.
Construction continues on Resorts World Las Vegas across the street from Wynn Las Vegas. The land has been a construction site since 2007 when BoydGaming started building Echelon. The property is now owned by Genting Group who broke ground on Resorts World Las Vegas in 2015.
Plans for the casino continue to evolve, and the current schedule says it should be open by the end of 2020. This casino will be the first in Las Vegas for Genting Group.
The partially finished Fontainebleau is now called Drew Las Vegas. The property is currently being redesigned and is scheduled to open in 2022.
The current owner, the Witkoff Group, is a real estate developer so expect to see other companies operating different parts of the integrated resort when it finally opens.
The future of Las Vegas
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Las Vegas is constantly changing.
It’s different today than it was a few years ago. SinCity continues to change and will be very different in the next few years. Things are never dull in Vegas.
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New and reinvented casinos, along with new owners and partnerships, will always guarantee a new Las Vegas experience.