Eldorado to sell Louisiana casino to Maverick Gaming for $230 M

The sale of Eldorado Shreveport was all about announced late last year by Eldorado CEO Tom Reeg, who said the company would need to sell a northern Louisiana property to avoid any federal antitrust issues. The merger with Caesars will give the company ownership of Horseshoe Bossier City.

“The agreement to divest the Eldorado Shreveport is consistent with our continued focus on reducing debt ahead of the expected closing for the Caesars transaction in the first half of 2020,” Reeg said in a statement.

In December, Eldorado sold three casinos – two in Missouri and one in West Virginia – to Century Casinos and real estate investment trust VICI Properties for $385 million. The company is in the process of selling a Missouri casino and Mississippi casino to Twin River Worldwide Holdings for $230 million.

Following the sale of Eldorado Shreveport and the completion of the Caesars merger, Eldorado will operate five casinos in Louisiana.

The investment community wasn’t surprised by the announcement and analysts expect other casino sales both before and after merger closes.  The Eldorado-Caesars deal requires approvals by regulatory agencies in 18 states and a sign-off by the Federal Trade Commission.

“The continued evolution of the combined company should include further property sales in other markets, the largest of which should occur post-closing,” Jefferies Gaming analyst David Katz told investors. “Nonetheless, we believe there remains considerable value to be captured from the combined entity.”

Based on previous comments by Reeg, it’s expected one the three casinos owned by Eldorado and Caesars in Lake Tahoe, Nevada – most likely Montbleau – will be sold. Deutsche Bank gaming analyst Carlo Santarelli said the combined companies concentration in Atlantic City in uncertain.