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Eldorado to Unload Lake Tahoe Property; Waiting for Caesars Acquisition
March 16, 2020 Khushbu Jainbhati
Eldorado Resorts has just decided to get rid of MontBlue Casino in Lake Tahoe, following the concerns about Nevada Gaming Authority reactions. The venue is undertaking final preparation for the completion of Caesars Entertainment acquisition while introducing a smaller portfolio and avoiding monopolization charges.
About Decision
The well-known property has already unveiled the sale of the Lake Tahoe casino, confirming that appropriate measures have been taken to assure the finalization of the project.
The buyer of the casino will be Maverick Gaming, which will take the casino for an unspecified amount. On this occasion, Eldorado CEO Tom Reeg said:
“The agreement to divest MontBleu is consistent with our continued focus on the expected closing for the Caesars transaction in the first half of 2020.”
Maverick Gaming has been active in expanding its casino portfolio by purchasing properties all around the US including Louisiana. The Lake Tahoe deal is the second agreement between Eldorado and Maverick after the latter operator purchased the Eldorado Resort & Casino in Shreveport, Louisiana for $230 million. The same transaction is still under regulatory checks.
About MontBleu Casino
MontBleu casino is known for an interesting story. The property has been held by Caesars for more than two decades when Eldorado took it from the competitor. It wasn’t the end of the journey for Lake Tahoe property which ended in the hands of Columbia Sussex in 2015 when the former operator looked to avoid monopolization problems.
Later on, the property was vended to Tropicana Entertainment and finished in Eldorado hands in 2018.
Present Situation
At the moment, Caesars owns Harvey’s Lake Tahoe and Harrah’s Lake Tahoe Stateline. If the operator keeps the MontBleu casino, it could cause serious problems for possible acquisition.
A 45,000 square feet venue, didn’t meet the expectations of the Eldorado which forced the operator to look for alternative solutions. The operator confirmed that the current traffic to the venue is not enough to meet the tax obligation. The local authorities ed the claims and reduced the taxable value of the property for more than 50% to $34.7 million. Finally, the casino left in the hand of Maverick Gaming…
Meanwhile, we are waiting for the official approval of the Eldorado/ Caesars deal. Several US states have already endorsed transactions including Pennsylvania. Some states like Indiana, Nevada and New Jersey still consider the option, and the MontBleu deal will facilitate the recognition process for Nevada regulator.
Source:
“Eldorado to sell Lake Tahoe property ahead of Caesars acquisition”, calvinayre.com, March 11, 2020.
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This is a very clever step from Eldorado Resorts. The operator’s priority is Caesars acquisition and they look to eliminate all potential hurdles. Looking forward to the finalization of the project and more similar deals in the iGaming community!