According to some experts, the gambling giant that has been recently created after the $17-billion acquisition of Caesars Entertainment by Eldorado Resorts is still not likely to show interest in participating in the upcoming license tender in Macau.
As explained by Eldorado Resorts Inc., following the acquisition, the combined company will own and operate over 55 casino venues in 16 US states. This includes 8 casino resorts situated on the Las Vegas Strip. The multibillion acquisition that was officially finalized earlier this week was expected to become the largest casino owner on a global scale.
Now, one of the managing partners of iGamiX Management & Consulting, Ben Lee, has predicted that the casino conglomerate would remain exclusively a US gambling giant without being present in Macau. Mr. Lee has explained that for the time being, Eldorado Resorts was more focused on growth on its domestic market, especially with the Caesars merger in place. According to the analyst, the combined company would remain a giant in the US gambling sector but not globally.
A year ago, Caesars Entertainment was the first global gambling company to leave the contest for a Japanese integrated casino resort license after citing the then-discussed merger with Eldorado Resorts as a key objective in its domestic market. After that, the operator has demonstrated no interest in becoming a contender in the bidding war for Macau gambling licenses. After Macau’s gambling market liberalization that took part in the early 2000s, Caesars has made a decision not to enter the competition for the first round of Macau licenses because of regulatory concerns.
Newly-Formed Gambling Conglomerate to Remain Focused on Its Domestic Casino Market
As mentioned above, the multibillion merger between Eldorado Resorts and Caesars Entertainment ends up with the combined company owning properties in a number of US states, including Illinois, Florida, Colorado, Arizona, Pennsylvania, North Carolina, Maryland, Ohio and Iowa. When it comes to the Las Vegas Strip, the gambling giant now owns eight casino resorts, including Caesars Palace, Harrah’s Las Vegas, the Flamingo, Planet Hollywood, Cromwell, Paris Las Vegas, Bally’s and Linq Hotel. It also owns the Rio hotel and casino resort off the Strip.
The gambling concessions in Macau are set to expire in June 2022. With less than two years remaining, there is not much clarity about the requirements that would be applicable to the next round of concessions. There has been speculation that the local Government may put an end to the satellite casino agreements. There have also been some rumors that diversification could be written into the licensees’ contracts.
According to Mr. Lee, the only overseas applicant who has an actual chance in the bidding process is Malaysia-based Genting Group. A property, for which it is still unknown whether it would host a small casino, is currently being constructed in close proximity to Nam Van Lake by the Malaysian gambling company. The venue is expected to open in 2022.
