Caesars manage to sell Rio Casino
Caesars have been working at selling Rio Casino for a while now, this has been a ten year long story that’s finally coming to an end.
This week Caesars finally announced that they had managed to agree a sale for the casino property to Dreamscape Companies. The company is owned by a New York property developer.
Dreamscape spend their business hours taking ownership of a range of different assets and then developing them however they like. This extends to gaming, residential and retail.
The sale was valued at over half a billion dollars, which includes the range of fees that were in place.
Things won’t change too much over the next two years though. Caesars will pay a rental fee of $45 million a year for the next two years in order to carry on the running of the Rio. This is to give everyone time to see what the best move for everyone is in the long run.
Dreamscape also have an option in their favour which would see a third year become mandatory but Caesars would only have to pay $38 million in rent for the third year.
As soon as the third year is over then Dreamscape will be able to decide what they want to do next with the Rio.
The WSOP will continue to be hosted at the Rio, for now
For more than ten years the WSOP has been hosted at the Rio. The sale of the Rio has caused a lot of furore within the poker world, with people wanting to know whether the biggest poker tournament in the world would be moving to somewhere else.
Once the deal was completed Caesars made it clear that the 2020 WSOP would still be held at the Rio. Whether it will continue at the Rio in the years after 2020 is still to be seen.
There is a widely held belief that the WSOP will have a change of venue to the conference centre that Caesars operate once it opens, but there has been no confirmation as of yet.
Caesars have confirmed that there will be no wholesale changes to how the Rio is operated while they are managing it. They have also confirmed to players that their rewards scheme will still be active at the Rio.
Selling the Rio is very similar to what MGM did recently. They sold off the Bellagio and another of their casinos. They also revealed plans to sell their flagship venue, the MGM Grand before 2020 hits.
It was revealed that the Bellagio cost over $4 billion dollars when it was sold and their second casino, Circus Circus, went for more than $800 million.
It’s believed that Caesars will sell more of their properties over the next year. This is linked with their proposed merger with Eldorado Resorts. This deal is expected to be completed at some point during 2020.
The reasoning behind this is because the merger will make them the largest casino company in the US, but monopoly laws could force them to let go of some of their properties.