Inside Asian Gaming

IAG SEP 2019年9月 亞博匯 22 COVER STORY Caesars is expected to sell some of its Las Vegas Strip properties once its US$17.8 billion merger with Eldorado Resorts is complete. 預計凱撒集團一旦完成與Eldorado Resorts的合併之後，將出售其部分拉斯維加斯大道物業。 T he empire of Caesars appears destined to be turned away from Asia again. In the wake of Eldorado Resorts’ US$17.8 billion takeover, Caesars has ended its pursuit of a Japan integrated resort license and, industry analysts believe, may abandon its casino resort under construction in South Korea. However, the merger isn’t slated to close until the first half of next year, and until then, Caesars continues to seek its long sought foothold in Asian gaming. Founded in 1973, Reno based Eldorado owned two and a half properties with EBITDA of US$35 million until 2014 when it began a series of acquisitions, expanding the portfolio to 26 properties and, Union Gaming estimates, US$644 million in EBITDA this year. Eldorado’s four previous deals were all in the US outside Las Vegas, and they’ve all been accretive thanks to management finding operational efficiencies, business synergies and cost cuts. Caesars, with 55 properties on four continents and estimated EBITDA in excess of US$2.3 billion, represents a quantum leap for Eldorado. With US$13.5 billion debt in the deal – half assumed from Caesars – Eldorado claims to have identified US$500 million in first year synergies and expects more ahead. “BLOCKING AND TACKLING” Against that background, during the 24 June 2019 conference call discussing the acquisition, Eldorado CEO Tom Reeg, slated to helm the merged company, asked about Caesars’ international ambitions, replied, “We’ve not made firm decisions on international yet. You know us as a company that’s been domestically focused and focused on blocking and tackling. So the opportunity internationally is going to have to be, frankly, stupendous for us to be running in that direction.” “Eldorado’s expertise – and Caesars’ – historically has been in domestic US gaming,” Union Gaming Director John DeCree says. “Until that business