Casino company, Caesars Entertainment, has just sold the well-established Rio All-Suite Hotel & Casino situated in Las Vegas. For years now, the venue has been popular as the host of World Series Poker tournament (WSOP).
More About Transaction
This past Monday, Caesars revealed that it had accomplished a $515,3m deal to sell the Rio property. According to the statement, Rio is sold to “a company controlled by a principal of Imperial Companies,” based in New York. The entire agreement is now waiting for regulatory approval and completion. Upon fulfilling final conditions, the closure of the deal is expected for the last quarter of the year.
What Deal Contains
As part of the deal, Caesars can continue to manage operations at Rio property for the following two years under the annual rate of $45m. The lease period can be extended to a third year with a payment of $7m to Caesars operator. The new owner has an additional possibility to request the modification of management rights from Caesars.
After the disclosure of this deal, the casino giant is halfway to the finalization of other vending agreements. The company has just concluded the acquisition process to Eldorado Resorts and the new owner is looking to unload some properties. Eldorado CEO, Tom Reeg, has recently observed:
“I was looking to unload at least one Caesars property on the Las Vegas Strip and regulatory demands in other markets – including Atlantic City, where the combined entities would control four of the nine casinos – will likely require similar sell-offs.“
Expectations
According to the Caesars announcement, World Series Poker tournament (WSOP) 2020 will take place in the Rio Venue. The company has also released the guidelines for the 2021 tournament, expecting to keep the rights for the WSOP event until the finalization of the acquisition deal. During the lease period, Caesars will keep Rio as part of the Royalty Reward Program.
CEO at Ceasers Tony Rodio observed:
“This deal will allow Ceasers to focus our resources on strengthening our attractive portfolio of recently renovated Strip properties and is expected to result in incremental EBITDA at those properties. The retention of both the WSOP and the loyalty program’s customers make this a valuable transaction for Caesars.”
Source:
"Caesars Entertainment Announces Sale of The Rio to Imperial Companies", caesars.com, September 23, 2019
fredos386
4 years ago
I have to admit i like the recent changes especially for canada being finally allowed to play netent games all across. Not that i play them all that much but being restricted like that seeing everyone else online playing them was frustrating. Now it's one problem solved to a long list, next. :D
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