• About
  • Contact Us
Sunday, August 14, 2022
Crypto Currency Financial
  • Home
  • Crypto News
  • Press Release
  • Blockchain
  • Cryptocurrency
  • NFT
  • Contact Us
No Result
View All Result
Crypto Currency Financial
No Result
View All Result
Home TRADING GUIDES

Caesars-Eldorado Merger at Risk as Coronavirus Disrupts Casino World

Max Steven by Max Steven
March 28, 2020
in TRADING GUIDES
395 4
0
Caesars-Eldorado Merger at Risk as Coronavirus Disrupts Casino World
548
SHARES
2.5k
VIEWS
Share on FacebookShare on Twitter

As the coronavirus rages on around the US, and the rest of the world, fears that the highly contagious virus might derail what could be the largest casino industry merger are rising by the day.

When Eldorado Resorts, a Reno, Nevada-based regional casino operator, announced its takeover of larger rival Caesars Entertainment Corp. last June, the company expected that the deal would close by late March or early April.

Then the coronavirus stormed through the US casino and hospitality industries, grinding activities to a near halt and forcing gambling regulators to put the proposed $17.3 billion tie-up on the back burner and focus on more pressing issues.

However, as Covid-19 continues to wreak havoc in stock markets and the economy at large, a deal that would create a hotel and casino behemoth strapped with a $20-plus-billion debt could eventually fall through.

Regulators Delaying Rulings on Merger

Caesars and Eldorado need approval from the regulators in the states where the two companies run properties, in order to be able to close the deal.

A handful of regulators have already blessed the marriage of the two companies, but there are still several that failed to rule on the tie-up before the start of the coronavirus crisis.

The Chair of the Nevada Gaming Control Board, Tony Alamo, this week told the New York Post that “there are much more important things happening in our country and industry” but that the merger is still under investigation in the Silver State.

The Nevada Gaming Control Board’s next meeting is scheduled for April.

In New Jersey, where Caesars operates three casinos and Eldorado runs one, the state Casino Control Commission is likely to hold its next meeting on May 13, as revealed by the regulator’s Chair, Jim Plousis.

However, with regulators being busy with other issues, including securing federal funding for the hibernating casino industry, and all the uncertainties stemming from the coronavirus outbreak, Eldorado is now required to pay a ticking fee to Caesars after failing to close the merger within nine months after it was first announced.

Eldorado Could Go Bankrupt if Merger Fails

Eldorado is paying its larger rival around $2.3 million a day in ticking fees. The fee is estimated to reach at least $100 million if the Nevada Gaming Control Board approves the merger at its next meeting in April and its New Jersey counterpart OKs it in May.

If the deal between the two major casino operators falls through, Eldorado will have to pay a penalty fee of $837 million. The company reported late last year $206 million in cash and a $500 million revolving line of credit, which meant that it had access to $706 million in hand.

It emerged this week that Eldorado has drawn down $480 million on its $500 million revolver, although it is unknown what it would or has done with that money.

All of the company’s casino properties are now temporarily closed until further notice in response to the coronavirus emergency and it loses millions of dollars every day. New York investment bank Cowen estimates that Eldorado could lose around $215 million if its casinos remain closed through June.

This means that if its merger with Caesars fails, Eldorado’s obligation to pay the $800-plus million break-up fee could force it into bankruptcy.

Source: Delay in Caesars-Eldorado merger could mean deal totally craps out

Follow us on Facebook and Twitter to stay up to date on the day’s top casino news stories

Related Articles

Related News

Tags: CaesarsEldoradoCasinocoronavirusDisruptsMergerRiskWorld
Max Steven

Max Steven

Max has keen interest in what cryptocurrencies have to offer in regards to NGO’s, governments and the financial system.

Related Posts

The Assure Announces Launch of Web3.0 Crypto Trading Management Aggregator

The Assure Announces Launch of Web3.0 Crypto Trading Management Aggregator

July 7, 2022
Blue tick, a way to cover up for a huge scam

Blue tick, a way to cover up for a huge scam

May 4, 2022
LABS Group is making Marketing Alliance with KuCoin The Big Shift from Ethereum to New Binance Smart Chain

LABS Group is making Marketing Alliance with KuCoin The Big Shift from Ethereum to New Binance Smart Chain

April 2, 2022
How to Save Hawaiian Geese and Get Wealth with Grand Goose Mansion?

How to Save Hawaiian Geese and Get Wealth with Grand Goose Mansion?

February 16, 2022
Announcing TurboXBT, The Newest Short-Term Trading Platform And Why You Should Care

Announcing TurboXBT, The Newest Short-Term Trading Platform And Why You Should Care

November 6, 2021
How to Stop Liking Someone And Move On For Good

How to Stop Liking Someone And Move On For Good

September 16, 2021

Trending

BIB Meta and the Confidence of Web3 Innovation
Press Release

BIB Meta and the Confidence of Web3 Innovation

1 day ago
WHAT IS VERSAILLES HEROES & HOW TO PLAY-TO-EARN?
Press Release

WHAT IS VERSAILLES HEROES & HOW TO PLAY-TO-EARN?

1 week ago
Pando Asset Lists First Crypto ETP on SIX Swiss Exchange
Press Release

Pando Asset Lists First Crypto ETP on SIX Swiss Exchange

2 weeks ago
BIB Exchange, The Revolutionary Force Towards Crypto Trading Opportunities
Press Release

BIB Exchange, The Revolutionary Force Towards Crypto Trading Opportunities

2 weeks ago
New reserve cryptocurrency protocol, PLUTO launches on Waves Blockchain claiming to beat bear markets
Press Release

New reserve cryptocurrency protocol, PLUTO launches on Waves Blockchain claiming to beat bear markets

3 weeks ago

About

The cryptocurrencyfinancial publishes regular news, analysis and opinion pieces on the latest developments in this fast-moving space. We offer the latest crypto news, expert pricing analysis and insight on the latest ICO's.

Contact Us: [email protected]

Categories

  • AI Trading
  • Axia
  • Bitcoin
  • Blockchain
  • Blockchain News
  • Business
  • Crypto
  • Crypto News
  • Cryptocurrency
  • Cryptonews
  • Cryptos
  • Deepcoin
  • Gaming
  • Guest Post
  • ICO
  • Metaverse
  • News
  • NFT
  • Press Release
  • Technology
  • Tezro
  • Token
  • Trading
  • TRADING GUIDES
  • Wallets

Tags

2020 Announces Betting Bitcoin blockchain Brides cannabis Casino Casinos Colorado Content coronavirus Covid19 crypto Cryptocurrency Currency Deal financial foreign Gambling Games Gaming Group Launch Launches live marijuana market Online Partners Partnership Play pot Pragmatic Red reports revenue Simple Slot Slots Solutions Sports Supply unveils William
  • BIB Meta and the Confidence of Web3 Innovation
  • WHAT IS VERSAILLES HEROES & HOW TO PLAY-TO-EARN?
  • Pando Asset Lists First Crypto ETP on SIX Swiss Exchange
  • BIB Exchange, The Revolutionary Force Towards Crypto Trading Opportunities
  • New reserve cryptocurrency protocol, PLUTO launches on Waves Blockchain claiming to beat bear markets
  • About
  • Contact Us

Associated with Blockchain Press Media Network

No Result
View All Result
  • Home
  • Blockchain
  • Crypto
  • News
  • Press Release
  • Price Analysis

Associated with Blockchain Press Media Network

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
  • bitcoinBitcoin(BTC)
    $47,760.000.100% 24H
    BITCOIN
    24H : 0.100%
    Volume : $25,691,746,641.00
    Marketcap : $902,767,395,534.00
  • ethereumEthereum(ETH)
    $3,750.30-0.42% 24H
    ETHEREUM
    24H : -0.42%
    Volume : $15,543,537,817.00
    Marketcap : $446,191,570,291.00
  • binancecoinBinance Coin(BNB)
    $523.71-0.25% 24H
    BINANCE COIN
    24H : -0.25%
    Volume : $1,715,282,504.00
    Marketcap : $88,112,540,019.00
  • tetherTether(USDT)
    $1.0000.050% 24H
    TETHER
    24H : 0.050%
    Volume : $52,703,800,023.00
    Marketcap : $78,519,198,598.00
  • solanaSolana(SOL)
    $175.020.210% 24H
    SOLANA
    24H : 0.210%
    Volume : $1,660,210,957.00
    Marketcap : $54,115,741,275.00