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El Dorado makes offer on CET

Discussion in 'Casino Industry & Development' started by donfairplay, Jun 6, 2019.

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  1. donfairplay

    donfairplay Low-Roller

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  2. vegasdev

    vegasdev VIP Whale

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    good for wall street maybe, not the workers or players.
     
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  3. sinnerman

    sinnerman High-Roller

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  4. VegasBJ

    VegasBJ VIP Whale

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    A merger might make more sense. Most of the interested parties want the assets, but not the debt, so a merger would make sense in that the debt would stay in place and be assumed by the new merged entity
     
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  5. sinnerman

    sinnerman High-Roller

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    Yeah, but no matter if it is a merger or a sale, the new company is going to have a ton of debt and very few hard assets, since most of the properties of CET and some of Eldorado belong to REIT's. If another recession hits in the next couple years, they will go bankrupt again.
     
    Last edited: Jun 7, 2019
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  6. UKFanatic

    UKFanatic The Arbiter of Taste Caviar Kid

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  7. waverunner

    waverunner ------VEGA$------

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    So what exactly does that mean if the deal finally goes through? Will Caesars Palace be renamed El Dorado Palace? Are we going back to the Wild, Wild, West days and CP will have sawdust on the floors instead of Marble? Will the Garden of the Gods pool be renamed.......Tumbleweeds of the Desert Oasis?...........:eek:

    Inquiring minds want to know.
     
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  8. sinnerman

    sinnerman High-Roller

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    No, Caesars brand value is much higher than Eldorado is.

    Much like when Harrah's took over Caesars, Eldorado will probably keep the Caesars brand as primary
     
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  9. TKO

    TKO Low-Roller

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    Eldorado took over our local casino (Mountaineer Casino) a few years back. "Devastated" a decent comp program the prior operator had in place. Had to have tightened the machines to boot. They "took no prisioners". Casino just continues to go down hill almost monthly. I believe many players have left for the 2 Pittsburgh area casinos.
     
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  10. sinnerman

    sinnerman High-Roller

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    Yeah, this is what I'm worried about as well. They seem pretty desperate to cut costs
     
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  11. Nittany1

    Nittany1 VIP Whale

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    Just talked to a good friend who is in marketing with CET in AC.
    He knows a couple Eldorado employees who say the plan is to structure it as a merger and then dump all but two current CET properties in Vegas.

    I can't verify any of this but he says they are just going to keep CP and PH.

    Rio ,Linq ,Harrahs , Flamingo, Cromwell, Ballys, and Paris go on the block.
    Sounds like a longshot but add the rumor to the mill.
     
  12. sinnerman

    sinnerman High-Roller

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    This seems like a long shot for one simple reason ... 'dumping' Rio, Linq, Harrah's, Bally's and Paris is going to be very difficult. CET has been trying to dump Rio for years and has not found a buyer. MGM cant pick up the casinos because of anti-trust issues. Wynn or Sands wont touch them since it doesn't fit into their upscale brand. Maybe a downtown operator who wants a strip presence might buy a casino, but selling all 7 of these casinos simply isn't going to happen.

    Also, anyone who buys it will (presumably) not be able to use total rewards anymore (since Eldorado will want that asset), which means they will take a huge hit just from that. I doubt this would be a smart business move for anyone.

    I read that El Dorado is considering offering $12 a share but CET and Icanh are going to hold out for a bit more, maybe something close to $13 to $14 a share.
     
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  13. mhetrick

    mhetrick Low-Roller

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    Vital Vegas over the weekend heard that Eldorado would sell PH after the merger, with Affinity Gaming (Tony Rodio's previous job) making the purchase of the property.
    It was also reported that Eldorado wanted in the neighborhood of 3-5 Vegas properties, selling the others. My thoughts are that PH, Cromwell, Rio, Linq are goners. They don't seem to fit into Eldorado's kind of properties. We will see!
     
  14. waverunner

    waverunner ------VEGA$------

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    I don't have any knowledge of El Dorado and their properties. But i presume it seems El Dorado prefers Bally's, Paris, Flamingo, Harrah's, and Caesars Palace, (or maybe take out Flamingo) which is geared to the older crowd generally, so does that mean these properties will maintain their current status with very little impact as far as the customer base?

    I wouldn't have a problem with selling PHO, and eventually Cromwell, LinQ, and the wasted Rio if their debt is lowered simply because those properties are generally geared to the younger crowd. Then two of my favorites, Bally's and Paris, can carry on with Total Rewards and so on, so forth.
    Would that be too optimistic?.....:confused:

    Could Richard Branson and Virgin purchase PHO and/or Cromwell?
     
  15. Headache 21

    Headache 21 Low-Roller

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    If PH gets sold off, would this impact the comped room I have booked for later in the year? Or would they honor it because it's already booked?
     
  16. bnlphan

    bnlphan Degenerate In Training

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    I just hope whatever happens in the end its split up between more than one company. This monopoly that CET and MGM have on the strip just hurts people so much. We need competition on the strip so they cut out the resort fees/parking and all that other stuff we complain about so much in and order to attract players. Take a mid level resort..Planet Hollywood for example. No resort fee free parking ( know they have that anyway) DT level slot payback. $5 BJ and Craps 24/7. Full pay video poker .25 cent and up. They'd get so many players crossing the street the others would eventually have to follow suit.
     
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  17. Mitkraft

    Mitkraft VIP Whale

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    I kinda feel the opposite when it comes to CET. Their large spread in Vegas and elsewhere gives us so many options to find somewhere to use our comps and we can flex up or down the ranking depending on what our comps will afford us. Otherwise we'd have to limit our play to a single casino or a much smaller group to maximize our comps. BITD we used to spread our gambling dollars across more players clubs and either didn't get much in comps or only got a night or two here or there and ended up changing hotels a time or two during a trip. I like being able to get so many days in one stretch at the same place.

     
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  18. nostresshere

    nostresshere Mr. Anti Debit Card

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    There are a few hundred variables in that decision is my best guess. If anyone can answer your question, they most probably will be wrong. LOL!

    Since the first merger has not happened, and therefore PH is not on the block to be sold, and therefore is not sold and no word on any carry forward of Total Rewards and how much any possible new owner wants to keep players that are getting free rooms and what their marketing direction will be and...

    So... the only good answers are yes, no or "it depends".


    But, if anyone will take the bet, I will put $100 on still getting your room - assuming it was offered because of decent play. If just a teaser offer... well.....
     
  19. Headache 21

    Headache 21 Low-Roller

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    That's what I'm assuming as well... alas
     
  20. sinnerman

    sinnerman High-Roller

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    Yeah, I feel the same way. Honestly, there are much better casinos than CET in Las Vegas. The only reason I like CET is the benefit of having a large number of casinos to get comped at, both on the strip and across the country. Take that away, and a large number of customers will walk away and the TR program will be worth a fraction of what it is now.

    If Eldorado buys CET and sells off most of the casinos, that would most definitely not be a value accretive move.
     
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