Regulators Approve Caesars’ Regional CEO Amidst Pending Eldorado Deal
More and more states in the US see the potential of the gambling industry to bring a massive amount of revenue and boost their economies. Many states started giving licences to companies, allowing them to operate gambling facilities. Casinos and other gambling venues were among the first companies to resume operations following loosened safety protocols of the government.
Gaming companies are on the move to expand their operations in many states. Caesars recently proposed a merger with Eldordao Resorts Inc. in the aim of serving more patrons and providing entertainment to a broader market.
Caesars and Eldorado merger pushed amidst falling Q1 revenue
Last month, Caesars expressed optimism that the merger with Eldorado will continue after the crisis despite the decline in revenue of both companies in the first quarter of this year.
The two companies said they would continue the deal by the end of June despite the disruptions from the novel coronavirus pandemic.
The merger needed the approval of gaming regulators in the states of Nevada, New Jersey, and Indiana for the merger to move forward. However, challenges brought by the crisis might push the closing of the deal next month.
The merger also needs the approval of the Federal Trade Commission.
On May, Caesars’ revenue declined by 13.6 per cent to $1.83 billion in the first quarter. The company also reported a decline of 47 per cent to $299 million in its adjusted earnings, while its operating loss reached $66 million.
Eldorado also suffered the same fate with Caesars. The company reported a decline in revenue by 25.6 per cent to $473 million. Its operating loss of $123.3 million is close to its operating profit of $123.6 million in that same period.
New License for regional CEO
Ronald Baumann became the new regional president and CEO of Bally’s Atlantic City, Caesars Atlantic City and Harrah’s Resort Atlantic City. The New CEO was given the authority to operate a casino in the city. Baumann said he is looking forward to opening a facility that abides with the health and wellness guidelines of the gaming regulator.
Bauman, a veteran in the industry, worked as the senior executive of Indiana Grand Racing & Casino and Harrah’s Philadelphia Casino and Racetrack. He later worked and handled important positions in Caesars Entertainment.
He was granted temporary leadership position when the company, along with Eldorado, proposed the approval of the merger to regulators in October. Mergers in the past have gained permission from regulators. Currently, the merger is reviewed by federal gaming regulators and the states of New Jersey, Nevada and Indiana.
The two companies initially proposal will give them license to manage four of the nine casinos in Atlantic City. Regulators are currently studying it the deal could create an unfair economic concentration. The two companies still wait for the signal to close the deal.
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