Eldorado Resorts, Inc.

History and Growth

Eldorado Resorts, Inc. was formed in 1996 as a reorganization of the Eldorado Hotel & Casino interests, enabling a $100 million bond offering. The Carano family maintained significant influence, with Gary Carano serving as Chairman and CEO. The company’s early years were marked by steady regional growth, but its transformation into a national powerhouse began with the 2014 reverse merger with MTR Gaming Group, which added racinos in Ohio, Pennsylvania, and West Virginia. This transaction also led to the public listing of Eldorado Resorts on the NASDAQ under the ticker ERI.

Key Acquisitions

From 2015 onward, Eldorado aggressively expanded through acquisitions: it purchased Circus Circus Reno and the remaining 50% stake in Silver Legacy Resort Casino from MGM Resorts in 2015; acquired Isle of Capri Casinos for $1.7 billion in 2017, adding 12 properties; and bought the Grand Victoria Casino in Illinois for $328 million in 2018. Later in 2018, Eldorado acquired the operating business of Tropicana Entertainment for $640 million, adding seven casinos across five states, and simultaneously entered into a long-term triple-net lease agreement with Gaming and Leisure Properties for the real estate of five of those casinos. These transactions solidified Eldorado’s position as one of the largest regional casino operators in the US.

Merger with Caesars

The most transformative deal was the acquisition of Caesars Entertainment Corporation, announced in June 2019 and completed in July 2020. The $17.3 billion cash-and-stock merger created a combined entity with over 55 resorts, spanning from Las Vegas to Atlantic City, making Eldorado (now Caesars Entertainment) the dominant force in U.S. gaming. Following the merger, the company was renamed Caesars Entertainment, Inc., and its corporate headquarters remained in Reno, Nevada. It continues to trade on NASDAQ under the symbol CZR and serves as a bellwether for the casino and hospitality industry, offering a comprehensive suite of entertainment, dining, gaming, and hotel experiences across its extensive portfolio.

Business Model and Market Position

Eldorado Resorts, now Caesars Entertainment, operates a highly diversified portfolio of casino resorts, focusing on both regional and destination markets. The company generates revenue from gaming, hotel accommodations, food and beverage, and entertainment. Its strategy has historically centered on acquiring underperforming assets, improving operations, and leveraging economies of scale. Post-merger, the company holds a leading market share in several U.S. markets, including Las Vegas, Atlantic City, and numerous regional riverboat and land-based casinos. Competitors include MGM Resorts, Penn Entertainment, and Boyd Gaming.