8 Reasons Why The Eldorado Caesars Merger Is Great News For New Jersey

The recent merger in Atlantic City of a pair of that community’s largest casino hotel operators brings many benefits to the New Jersey gaming landscape. In this article, we will take a closer look at what those benefits are.

 

1 – It Will Increase Investment

This is a very good thing for the region. When you consider that the cash and stock merger between Eldorado Resorts Inc. and Caesars Entertainment Corp. had a value of $8.6-billion that is a major investment.

Add to that the details explaining that the merger now brings together two big names to create the largest casino operator in the United States, this is going to total several different properties.

Rough numbers come out at over 50 casinos operating in 16 states as well as several international locations. The Caesars name has quite a draw to it thanks to extremely solid brand recognition. It will attract additional investment in and around the region.

 

2 – It Removes A Perceived Caesars Monopoly

A merger process that started over a year ago with the sale of Bally’s started to calm the waters related to a potential monopoly. At the time, state officials in New Jersey were concerned about Caesars having too much control of the market in Atlantic City.

Twin Rivers Worldwide Holdings, who bought Bally’s for $25-million, became a new player in Atlantic City which put minds at ease at the state level.

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3 – Deed Restrictions Stay In Play

Deed restrictions are an interesting addition to any casino agreement. In simple terms, these restrictions are used to provide existing casino operators with a form of protection from additional competition.

You could look at it as compared to a shopping mall. Your average shopping mall has only so many places to purchase food, as an example. The population base will have a great deal to do with the success of each foodservice operator. Once too many food outlets are added to the shopping mall and the population does not increase, a few of the food operators will start to suffer.

Atlantic City and gambling are controlled in much the same way with deed restrictions. It keeps the number of new casinos in check so the existing ones still get a piece of the action and continue to succeed.

 

4 – It Makes Sense During Pandemic Restrictions

We have to acknowledge that as great as it sounds that a merger in Atlantic City has taken place and created the largest US casino operator, we are still living in an unusual time in history.

The ongoing restrictions in place related to public gatherings in response to COVID-19 have impacted the brick-and-mortar casino operations considerably. However, this merger can benefit from this situation as well. A lot of online gaming options have been developed recently as attention has shifted to the internet for many gaming fans.

The merger of Eldorado and Caesars may see such a development.

 

5 – An Ongoing Increase In Employment Opportunities

Sure, the shutdown from COVID-19 resulted in numerous lay-offs. With recent reopening phases underway, revenue is slowly increasing at the Eldorado Caesars and other Atlantic City casinos.

However, air travel restrictions have caused a significant drop as tourists from outside the United States are few and far between. Eldorado CEO Tom Reeg feels that the lifting of those shutdown orders will permit his company to bring back more than half of its employees.

He adds that the public health situation is going to dictate the numbers and is hopeful that even more of the more than 80,000 employees will be allowed to resume work.

 

6 – Moving To Online Gaming Formats

We have already touched on this topic briefly but in reality, it is a huge benefit that even Reeg feels is the next step in the life of Eldorado Caesars. There is no doubt that there continues to be a growing demand for online sports betting and gambling opportunities.

Now is the perfect time to jump into the game and get involved. Again, building on brand recognition, an appetite for sports fans who play and gamble online and the fact that the majority of these players would be participating from locations outside of Atlantic City means a whole new customer base can be created.

 

7 – It Is Good For The Industry As A Whole

With more and more jurisdictions allowing hotel-casino operators, a merger of this size in Atlantic City is a good sign of the strength and vibrancy of the gambling industry. Yes, there have been hurdles with COVID-19 being the most recent to knock the wind out of the sails of more than just the gaming industry.

However, as mentioned above, the interest brought to the industry via the internet has given some hotel-casino operators a second life to live. The overall message, though, is that gaming is alive and well in Atlantic City.

 

8 – It Gives Gamblers More Options

With a new player in town, you can bet (pun intended) that you will see something more than the typical hotel-casino. We suspect that there will be new facilities built and some existing ones renovated.

In other words, a fresh face in the crowd will do much to freshen up the offerings that attract new and existing customers. No one said casinos were not innovative, but when you now have the biggest player in the country with property in your gambling city, there are bound to be some changes. These will be good for players, good for the community, and good for the industry.

 

Summary

When two of the biggest casino hotel operators in Atlantic City join forces through a merger, that has got to mean something. The combination created the largest US casino operator and will be good for the state of New Jersey for several reasons. The investment being the top benefit however, there are more. Regardless of the details, ultimately this joining of forces sends the signal that the gaming industry continues to be strong even when dealing with restrictions such as COVID-19.

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