ldorado Resorts announced Monday it has entered into a definitive agreement to sell its resort and casino in Shreveport, Louisiana to Maverick Gaming for $230 million in cash, subject to a working capital adjustment.
Reno, Nevada-based Eldorado Resorts is a publicly-traded company that is slated to acquire Caesars this year in a multibillion-dollar deal.
"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," said Tom Reeg, chief executive officer of Eldorado.
Eldorado also owns and operates the Belle of Baton Rouge and Isle of Capri Casino Hotel in Lake Charles. Once the deal to acquire Caesars closes this year, Eldorado will own Harrah's land-based casino in New Orleans as well. Caesars' other properties in the state are Harrah's Louisiana Downs in Bossier City and Horseshoe Bossier City. The combined Eldorado and Caesars expects to save $500 million in the first 12 months after the deal closes this year as they integrate operations, the Advocate reports.
The Shreveport transaction is subject to regulatory approvals, the prior or concurrent closing of Eldorado’s Caesars Entertainment Corporation deal, and other customary closing conditions and is expected to close in 2020.
During November, Eldorado's Shreveport casino took in $8.7 million in winnings, down 9.5% from $9.6 million for November 2018, according to the Louisiana Gaming Control Board's latest report.
In the Shreveport-Bossier City market overall, which has the most riverboats of any market along with the Harrah's Louisiana Downs track, winnings were up 3.1% to $54.7 million in November 2019 from a year earlier.
Maverick Gaming's deal to acquire the Eldorado resort is the company's first venture into Louisiana. Eric Persson is its majority owner.