An agreement has been reached for an $18 billion Caesars takeover, while MGM Resorts has received a buyout bid all their own! This Week in Gambling, we’re looking at what all of this means for players, rewards programs, and casinos in Las Vegas, Atlantic City, and all points in between!
So, do you remember when billionaire Tilman Fertitta wanted to build a new Las Vegas resort right in the middle of the Strip? Well… he don’t have to worry about that no more! The Golden Nugget owner purchased Caesars’ Entertainment for $17.6 billion, and industry experts believe this takeover will change the face of Las Vegas and Atlantic City. While it has been signed, the agreement is not a done deal, not yet. Caesars’ has until July 11th to consider other offers… if any come.
Under Fertitta and his Caesars takeover, resorts like Caesars’ Palace in Vegas and Harrah’s Atlantic City are most likely safe, while other properties have been mentioned as candidates that could be sold to help pay down some of the company’s debt. In Las Vegas, resorts like Paris, Horseshoe, and the newly renovated Vanderpump are most likely okay, but the aging Flamingo, along with Harrah’s and Planet Hollywood, could see a for sale sign going up.
In New Jersey, their Caesars’ resort will almost certainly be retained, while Tropicana Atlantic City is expected to be placed on the market. But, what about all the other casinos across the country? Well, analysts believe that properties in New Orleans, Virginia, and Indiana will most likely be kept. However, there are no guarantees for resorts in other markets which could easily be liquidated. Additionally, Caesars racinos and the resorts they operate with tribal gaming appear to be safe, but properties in Laughlin are questionable. Plus, reviews of this buyout by state regulators and the Federal Trade Commission could force the sale or the name change of Horseshoe Lake Charles and Harrah’s Gulf Coast at some point in the future.
There are other expected changes as well with food and beverage service as Fertitta owns several restaurants. Industry insiders expect him to replace current dining options with his brands like Landry’s Seafood, Rainforest Cafe, Morton’s The Steakhouse, and others. And when it comes to Caesars Rewards, the buzz is that Fertitta will integrate his Landry’s Select Club into the existing program, which means current rewards members could earn points at hundreds of local restaurants nationwide and create a much broader ecosystem.
Finally this week, the pending sale of Caesars Entertainment is just the first half of potential changes in Las Vegas, New Jersey, and beyond. Media pioneer Barry Diller already owns one-fourth of MGM Resorts public stock, and now he wants the rest of it. Diller made his own $18 billion cash offer to acquire all outstanding shares of MGM Resorts that he doesn’t already own. But, his plans for MGM are very different than the plans for Caesars.
While Fertitta seems focused on the land-based resorts and real-world customer experience, Diller seems more focused on digital growth and competing with the likes of DraftKings and FanDuel. What does all this mean for the average casino guest? Not much for MGM. If the sale happens, industry experts do not foresee any major resort sales, shake-ups, or rebranding of their properties. Instead, look for a hyper-aggressive online focus with BetMGM and digital gaming growth.
So, what’s the bottom line? Well, if the Caesars takeover goes through and an MGM buyout is accepted, they will both transition from publicly traded companies to privately held companies. However, do not expect to see any price drops anytime soon. In addition to all the possible changes we’ve already discussed, comps may tighten up, and resort fees and paid parking probably won’t come to an end. After all, when someone pays billions of dollars for a company, they’re usually hoping for a big return. Hey, if you enjoyed our video, we appreciate every like and share we can get. And to keep up with Las Vegas and the world of gambling, be sure to subscribe and follow our channel.