The $17.3 Billion Eldorado Resorts and Caesar Entertainment deal that saw the partnership of their properties like Eldorado’s Tropicana, Caesar’s Harrah’s, Bally’s and Caesar could see the 40-year-old Bally’s in Atlantic City risk closure.
A source claims that with the merged companies looking to own four casinos, the New Jersey regulator would be forced to make Eldorado exit one of its casinos. With only nine casinos in Atlantic City, the move to own four casinos would spell monopoly in the state.
A former New Jersey official who could not be identified said that Eldorado would try to make the deal approved without divestiture and in the case where it proves impossible, the merger would see Bally’s dropped.
Caesar wanted the sale of Bally’s
This does not come as a surprise to many with Caesar looking to shut Bally’s doors in the past years till the closure of Revel Casino which saw the competitive pressure size down. There have been reasons pointing to the neglect Bally’s was facing from Caesar Entertainment.
For a start, the casino is known for its pink-tinted windows and now the replacement of broken windows has seen the casino having plain windows which have made it ‘eyesore’ according to sources. In 2015, there was a report of unhealthy levels of lead in the water that was in a Bally’s high-roller suite and for six months, the casino did not alert the guests.
April 2019 has seen the casino moving hosts working with high-end customers to the new Caesar location and what’s more, the casino has advised some of its guests to move their accounts to the new location.
For Atlantic City, the revenue won has been on the rise but this cannot be compared with Bally’s which for a long time has been on the decline in terms of the revenue it wins yearly.
2018 saw seven of the nine Atlantic City casinos opened all through and Bally’s would take the sixth position among the seven in the Gross Gaming Revenue (GGR) won. With the entry of Hard Rock and Ocean Casino Resort, Bally’s saw its position slump to ninth. This represented a decline to what was once the ‘king of Atlantic City’
‘Over the years Caesars has put little money in the upkeep of Bally’s’ a customer who referred to Bally’s as ‘Caesar stepchild’ stated.
To break the coming tide, an ex-gaming official proposes that with the two casinos being physically connected, Bally’s would be converted to a Hotel without gaming and this would help out in sorting out the overflow that would be experienced from Caesars.
Prior to the merger, Eldorado has also been selling some of its assets where its operations and that of Caesar have been felt in a bid to make room for the deal that is yet to be approved by the regulators.
June 17th, 2019, saw Eldorado casino sell two of its casinos located in Missouri, VICI Properties Inc. and one casino in West Virginia to Century Casinos. It would sell the land and some of Harrah’s Atlantic City, Harrah’s New Orleans and Harrah’s Laughlin’s real estate to VICI Properties for $3.2 Billion.
The anticipated deal approval would see the combined company operate more than 70 casinos in the States.