Bally's Acquires Eldorado Shreveport from Caesars
Bally’s Corporation (NYSE: BALY) has acquired Eldorado Resort Casino Shreveport from Caesars Entertainment (NASDAQ: CZR). The property was bought for $140 million, which was primarily paid for with cash as well as borrowings from Bally’s revolving credit facility.
George Papanier, the President and CEO of Bally Corporation, said that the acquisition is the latest step in the company’s strategy to diversify its portfolio. He explained that the purpose of the acquisition is to expand the company’s geographic footprint into the Shreveport market and described the venue as a “top-class, premier entertainment asset”.
The casino, which is located on the Red River in Shreveport Louisiana, includes 403 hotel rooms, 1401 slot machines, and 54 gaming tables.
Bally’s has been engaged in an aggressive growth strategy recently. Last year, it acquired Twin River Worldwide Holdings for $20 million. Its latest acquisition means that that Bally now has 11 casinos across seven states with a total of more than 2,941 hotel rooms, 13,200 slot machines, and 459 gaming tables. It also has off-track wagering licenses and a racetrack in Colorado.
Furthermore, the coronavirus has not appeared to slow Bally’s down. It is currently in the process of acquiring three more casinos: the MontBleu Resort Casino & Spa in Nevada, Tropicana Evansville in Indiana, and Jumer’s Casino & Hotel in Illinois. When these deals are complete, Bally’s will have a presence in ten states.
The acquisition was made possible by the merger of Caesars and Eldorado Resorts last year. Caesars was obligated to sell a number of properties under the terms imposed by state regulators and the Eldorado Resort Casino Shreveport was one such property.
Around this time last year, Eldorado announced that it planned to sell the venue to Maverick Gaming LLC for $230 million. However, the deal fell through due to the pandemic and Eldorado had to find another buyer that the Federal Trade Commission would approve of.
It is likely that Eldorado Shreveport will incorporate Bally’s name at some point in the near future as the company is currently rebranding all of its venues.