Caesars Completes Sale of Lake Tahoe Casino to Bally’s
Rhode Island-based casino operator Bally’s Corporation this week closed the acquisition of MontBleu Resort Casino & Spa in the Lake Tahoe area in Nevada from its larger rival Caesars Entertainment, Inc.
The finalization of the deal marks Bally’s debut in the Silver State. Nevada thus became the eighth state the company owns and operates properties in. It should also be noted that MontBleu is its 12th casino in the US.
It is expected that the 400-room hotel and casino resort will be renamed under the Bally’s brand as part of the operator’s ongoing nationwide rebranding strategy.
The company acquired the Bally’s brand from Caesars last fall in a $20 million deal. Formerly Twin River, it took the Bally’s name in November and announced plans to rebrand its properties across the nation, as well.
MontBleu is located in Stateline, Nevada, just minutes from Lake Tahoe. It features 438 hotel rooms, a casino with 418 slot machines and 17 tables, and 14,000 square feet of flexible convention, meeting, and exhibition space, among other amenities.
The acquisition of the Lake Tahoe property is the latest in a series of similar moves undertaken by Bally’s in the past several months. The company is also currently in the process of buying Tropicana Evansville in Indiana and Jumer’s Casino in Rock Island, Illinois to further expand its footprint across the nation.
Caesars Sold MontBleu to Satisfy Antitrust Enforcers
Caesars and former Eldorado Resorts had to divest a number of assets in several states in order to satisfy federal antitrust enforcers and get their green light to complete their $17.3 billion merger. The deal closed last July.
MontBleu and Eldorado Shreveport were among the properties that the two companies sold. Bally’s emerged as an interested buyer for both and it was announced last April that the Rhode Island company would purchase them for a combined $155 million.
When it closed the transaction for the Louisiana property in December, Bally’s said it paid $140 million for it, meaning that MontBleu was valued at $15 million.
Commenting on finalizing the sale of the Lake Tahoe casino, Caesars CEO Tom Reeg extended his gratitude to the “Team Members of MontBleu for all of their hard work and dedication throughout the years with the Caesars organization, particularly during the Covid-19 pandemic” and wished them continued success under the new ownership.
Bally’s President and CEO George Papanier added that MontBleu is a “premier entertainment asset that is commensurate with the iconic Bally’s brand, and advances our ongoing portfolio diversification strategy.” He further noted that with the close of the transaction, the company now looks forward to integrating it into its fast-expanding family and “utilizing it as an attractive destination for our loyal Bally’s customers to drive visitation to Lake Tahoe.”
Eldorado originally announced that it would sell the two Nevada and Louisiana properties to regional casino operator Maverick Gaming but that earlier this fell apart.
Source: Caesars Entertainment, Inc. Completes Previously Announced Sale of MontBleu Resort Casino & Spa to Bally’s Corporation, PR Newswire, April 7, 2021
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