The Las Vegas gambling scene has become highly competitive, with big names like Caesars and MGM fighting for their share. The feud between the two operators continues as the former has decided to sell off one of its billion-dollar strip casinos from Las Vegas as part of its plan to reduce debt.
The gambling capital of the US is witnessing one of the hottest fights for business between Caesars Entertainment Inc. and MGM Resorts International. Historically, both companies have made movements to topple the other. However, MGM Resorts had emerged victorious in recent times when it traded the Mirage for the lustrous and modern Cosmopolitan.
This move has put MGM on top and gave a whole new perspective to the operator’s Las Vegas portfolio. Although Caesars did not take any immediate action to counter it, the time seems to have come for the operator to emerge. For a starter, the company has plans to rebrand Bally’s hotel-cum-casino into its more iconic Horseshoe Brand.
However, that is not all the casino operator has up its sleeves. The latest reports suggest that Caesars’ plan to sell one of its strip casinos that have been in talks for a few months seems to be materializing finally. It will be a great boost for the operator as its debts stay well over $13 million after the end of the first quarter.
Named Flamingo, the strip casino was started in the late 40s by gangster Bugsy Siegel. Caesars was looking for a buyer with a billion dollars in their pockets for the casino. However, many seem to have taken the pass on this one, given its age.
Buyers were reluctant to enter the deals as older properties, such as the Flamingo, will require a lot of maintenance costs. Moreover, the old bird will likely lose a significant portion of its business when separated from the Caesars Customer Loyalty Program.
On top of that, a real estate investment trust called Vici Properties Inc. owns several Caesars’ properties and has a right of first refusal on the sale of Flamingo. It further complicated the sale of the casino.
As a reason, the discussion for the purchase has been going on since mid-2021 for nearly a year now. But Tom Reeg, CEO of Caesars, stated that the purchase was delayed due to legal procedures involved in the purchase. He further added that the company would be pleased if they could close the deal even one day before the six months.
Flamingo is the oldest establishment in the portfolio of Caesars Entertainment and has operated for nearly 75 years now. The casino has 3,450 rooms which account for almost one-quarter of the entire room owned by the casino operator.