1. Welcome to VegasMessageBoard
    It appears you are visiting our community as a guest.
    In order to view full-size images, participate in discussions, vote in polls, etc, you will need to Log in or Register.

El Dorado makes offer on CET

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

Thread Status:
Not open for further replies.
  1. VegasBJ

    VegasBJ VIP Whale

    Joined:
    Aug 23, 2009
    Messages:
    5,051
    Location:
    usually Shadow Creek
    Trips to Las Vegas:
    379
    And......since most of the land under these CET casinos is owned by the REIT, unless Eldorado is offering the land as well, I do not see many buyers lining up to buy these lower end properties if only buying the hotel / casino, and not the land underneath as well. These hotels would not even sell for build value / cost if that was the case. No way someone like a Ruffin buys these and then has to turnaround and pay a rent / lease fee for the land back to Eldorado / new CET / REIT.

    So, if that was the case ( hypothesizing), then Eldorado takes more of a bath on this as the sale price would presumably be less than current book value.
     
    • Agree Agree x 1
  2. sinnerman

    sinnerman High-Roller

    Joined:
    Jun 25, 2017
    Messages:
    733
    Location:
    NYC
    Trips to Las Vegas:
    18
    Eldorado cannot offer the land. Not unless they buy the CET REIT and there is simply no way they can afford to do that given Eldorado (and CET's) current debt load. Keep in mind, if Eldorado buys CET, they are taking on all of CET's debt as well. They will simply not have the money to buy any property from the CET REIT, let alone the REIT itself.
     
  3. gambo82

    gambo82 Tourist

    Joined:
    Dec 2, 2014
    Messages:
    31
    VICI is the REIT that own the land under some of CET Casinos. In Las Vegas VICI /REIT owns Caesars and Harrah's but not the other casinos. Any of the other casinos can be sold whole.

    Thats why Rio and PH are prime candidates to be sold.
     
    • Informative Informative x 3
    • Agree Agree x 1
  4. nostresshere

    nostresshere Mr. Anti Debit Card

    Joined:
    May 4, 2009
    Messages:
    16,492
    Location:
    TN
    Trips to Las Vegas:
    19
    What a shell game!
     
    • Agree Agree x 1
  5. mhetrick

    mhetrick Low-Roller

    Joined:
    Aug 29, 2018
    Messages:
    154
    Trips to Las Vegas:
    15
    Yes, generally Eldorado Resorts are geared towards older gamblers. I'm basing that on observations from Eldorado in Shreveport, LA which is my "local". Since they purchased the property some 15 years ago, that's the crowd they've seem to cater to.
     
  6. mhetrick

    mhetrick Low-Roller

    Joined:
    Aug 29, 2018
    Messages:
    154
    Trips to Las Vegas:
    15
    I doubt it (I, too, have rooms booked in October at PH), because the deal has to be made then it moves into the regulation stage. I imagine the deal wouldn't close until Q1 of 2020 at the earliest.
     
  7. waverunner

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

    Joined:
    Jul 27, 2012
    Messages:
    2,718
    Location:
    SoCal
    Trips to Las Vegas:
    124
    For me personally, it might be better to change back to MGM/Milife for my gambling bankroll. If CZR is breaking up into little pieces, it's bad news for me. I like to gamble at various Caesars properties knowing that when i use my TR card i get rewarded with points etc.
    But i no longer see that happening if all goes as planned.

    If i go back to MGM/Milife, which covers MGM, MB, Luxor, EX, NYNY, Park MGM, Bellagio, and Mirage, i will have a full range of options simply because i like to casino hop. It would seem impossible to casino hop at all Caesars properties now (or when the deal goes through.

    I'm perplexed right now. I don't know if i should use my entire bankroll at Caesars next week (like i normally do)........or do a split bankroll between Caesars and MGM. I also have rooms booked for 2020 at Bally's and PHO.

    But my main concern is that i prefer to Casino hop, which is why i may have to split my bankroll and maybe do some damage on the south Strip hoping to get the Milife calendar in good standing, even if it's just Excalibur right now. I have no problem staying at EX and then hitting the other MGM properies with my bankroll.

    I'm so used to the Mid Strip i may have to gamble at Bellagio and Mirage and make believe it's part of Total Rewards......LOL.
     
  8. Chuck2009x

    Chuck2009x VIP Whale

    Joined:
    Apr 5, 2009
    Messages:
    8,598
    Location:
    Boston
    Trips to Las Vegas:
    23
    Any new owner would have to be out of their freakin' minds to not honor existing reservations, comped or otherwise.
     
    Last edited: Jun 11, 2019
    • Agree Agree x 5
    • Like Like x 1
  9. jbpiv01

    jbpiv01 Low-Roller

    Joined:
    Apr 10, 2015
    Messages:
    137
    Location:
    Chicago, IL
    Trips to Las Vegas:
    15
    I would think they would keep Linq being across the street from CP, and the whole Linq street scene including wheek and zip lines. But “Why?” You ask... remember that huge new construction project on the other side of the wheel? I would think that they would want to keep the access to that theirs.
     
  10. nostresshere

    nostresshere Mr. Anti Debit Card

    Joined:
    May 4, 2009
    Messages:
    16,492
    Location:
    TN
    Trips to Las Vegas:
    19
    One of the more logical responses. Really. Any new owner wants customers and soon in attempt to increase revenue. Pissing off customers is the last thing they want to do.

    And while we are at it.. most takeovers have employees running around with their hair on fire. They are convinced the new owners will fire EVERYONE. Wrong. They need the existing staff to run things. Yes, they will remove dead weight - meaning people not pulling their share, or jobs that just do not need to exist. But surely no mass firings.
     
  11. spdandpwr

    spdandpwr VIP Whale

    Joined:
    Feb 25, 2016
    Messages:
    2,794
    Location:
    East Coast
    Frankly, I'd book a whole bunch of rooms / lock things in and cancel in case you decide not to go.
     
    Last edited: Jun 11, 2019
    Art of the Wild
    • Like Like x 2
    • Agree Agree x 1
  12. NPLV

    NPLV High-Roller

    Joined:
    Jul 3, 2016
    Messages:
    876
    Location:
    Florida
    Trips to Las Vegas:
    11
    I’m also a casino hopper and this bums me out a bit. I love the walk from PH up to Harrah’s and stopping to play everywhere in between. It just makes sense to focus your play where you’ll get benefits. Wanting to hop around, that limits me to CET or MLife. I like the vibe in CET casinos a bit more, just a bit grungier. However I’m sure I’d find just as much to love staying more at the MLife casinos.
     
  13. spdandpwr

    spdandpwr VIP Whale

    Joined:
    Feb 25, 2016
    Messages:
    2,794
    Location:
    East Coast
    mLife casinos feel sterile, both literally and figuratively speaking
     
    Art of the Wild
    • Like Like x 1
    • Agree Agree x 1
  14. waverunner

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

    Joined:
    Jul 27, 2012
    Messages:
    2,718
    Location:
    SoCal
    Trips to Las Vegas:
    124
    What i'm curious about is what does this breakup with CZR do to members of Total Rewards. If PHO is sold, will they have a new and different card? Where will all my points go? If Caesars is broken up into different pieces, does that mean i could have 3 or 4 different rewards cards as opposed to one TR card?
    I presume, or at least hope, that in the long run having 2,3, maybe 4 different cards (one for TR, the rest from the new owners) on the Mid Strip (Harrah's, LinQ, Flamingo, Cromwell, Bally's, Paris, PHO, and Caesars Palace), may be a blessing in disguise?......or not.
    As others have mentioned, i do feel more comfortable gambling on Mid Strip, but trying to collect rewards, which is mandatory for me, can be more difficult given that casino hopping would have to be spread around with different cards which prohibits my total number of credits to get rewarded.
    Which may wind up into using my MGM/Milife card instead of using mutiple cards across the street. Get ready Bellagio and Mirage, looks like i'm back with you guys, my Milife card has been waxed and shined looking like new.......LOL.
     
  15. SH0CK

    SH0CK Stylin' and Profilin' Quasi Tech Admin

    Joined:
    Nov 2, 2001
    Messages:
    17,414
    Location:
    Tennessee
    Trips to Las Vegas:
    44
    Seems to be way too much cart before the horse in this thread. Until the deal(s) are done, it's really not worth worrying about. Plus, it may not even be worth worrying about afterwards either.
    But, I can most likely answer this question with what happened at TI when Ruffin took over there.

    Ruffin got player information from the sale also. He created his own Players Club from that data where your former MGM-Mirage player's card number was your new TI Players Club account number. TI was able to pull the TI only gambling numbers and use that as a basis for their system going forward. If an existing Vegas hotel owner gets ahold of a Caesars property, then I can see them going the TI route with player's data then combining it into the new owners system. Same if someone from outside Vegas gets ahold of a CET property. They just roll the existing data into their system and market to those players.
     
  16. donfairplay

    donfairplay High-Roller

    Joined:
    Feb 12, 2013
    Messages:
    503
    Location:
    CA
    Trips to Las Vegas:
    6
    I never really understood the hate for Ruffin wrt Las Vegas and TI. Turned a hand truck business into gold, bought Treasure Island for less than what the land is worth and then sets rates at the some of the lowest on the mid-north strip (before comps).

    Honestly, I'd be perfectly happy with a Ruffin side of the strip if Caesars ends up selling major hotels. Optional resort fees. Caters to a more affordable "the price is the price" room rates for the majority of travelers.

    A little rebellion now and then is a good thing.
     
  17. LolaDoggie

    LolaDoggie VIP Whale

    Joined:
    Jul 6, 2009
    Messages:
    3,935
    Trips to Las Vegas:
    6
    They don't need a recession for that. Visitor numbers are down, downward trend. Convention business is starting to drop as well. Those convention contracts are set up so far in advance, it always takes longer for those chickens to come home to roost.
     
    • Agree Agree x 2
  18. waverunner

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

    Joined:
    Jul 27, 2012
    Messages:
    2,718
    Location:
    SoCal
    Trips to Las Vegas:
    124
    Thanks SHOCK. I'll be in Vegas in a few days, what i'll probably do is do my normal routine, gamble only at CZR. Then let the chips fall as they may and hope for the best for my upcoming trips either in the Fall or Spring 2020.
     
  19. Chuck2009x

    Chuck2009x VIP Whale

    Joined:
    Apr 5, 2009
    Messages:
    8,598
    Location:
    Boston
    Trips to Las Vegas:
    23
    Yeah Ruffin basically kept the guts of the old (pre-Mlife) MGM system. $1.50 coin in per point, no tiers. In fact, when I joined the TI Players club in 2017, when I logged in, there was a message listed that was actually from when I joined MGM 7 years earlier:

    upload_2019-6-12_2-30-3.png

    If CET gets broken up, probably every casino operator that buys a property will apply their own players club scheme, so you will have to join a new one(s) if your favorite property(s) are not part of the core, and none of your TR points will be usable at those properties. And whoever buys the whole shmear and TR system and keeps most of the CET properties can either convert their existing system to TR, or the other way around. Most existing points are worth a penny in all systems, so that's not the hard part, the hard part is getting people used to the math of a new earning system, if that's what happens.
     
  20. mtdiller

    mtdiller Tourist

    Joined:
    Sep 29, 2016
    Messages:
    22
    Location:
    DC
    Trips to Las Vegas:
    14
    I've often wondered if there's a buyer out there with deep pockets that would look to pick up Cromwell and Flamingo with the idea of eventually tearing them down to build a new megaresort on the land (presumably keeping the Flamingo name). While buying an existing resort to tear it down and build a new one in its place hasn't happened in the last decade, historically it's happened with some frequency, and it feels like the prime location at the direct center of the strip could be worth the price for the right developer/operator.

    There would, of course, be issues with the Linq and Promenade that would need to be worked out.
     
Thread Status:
Not open for further replies.