Lightning to strike again in Vegas?
In yet another indication of the rush to consolidation in the US gaming industry, Harrah's Entertainment is in the final stages of making a deal with Caesars Entertainment. The $10 billion deal comes in the wake of announced deal between rivals MGM Grand and Mandalay Resorts. The MGM Grand deal would make that new company the #1 gaming company, leapfrogging over #1 Harrah's and #2 Caesars. In response, the newly joined Harrah's/Caesars would regain the #1 position, owning own 52 casinos across the US (though some units may have to be sold off to assuage regulators.)
Caesars, which has a strong presence in Las Vegas, owns among other hotel/casinos: Bally's, Caesar's Palace, Flamingo, Las Vegas Hilton and Paris Las Vegas (all in Las Vegas); Atlantic City Hilton, Bally's Atlantic City and Caesar's Atlantic City (in New Jersey); and other casinos in Mississippi, Louisiana, and Indiana. It also has properties in Australia, Canada, South Africa, and Uruguay.
Harrah's owns Harrah's Lake Tahoe, Harveys Lake Tahoe, Harrah's Reno, Harrah's Las Vegas, Rio All-Suite Hotel & Casino and Harrah's Laughlin (all in Nevada). It also owns properties in New Jersey, California, Iowa, Kansas, Illinois, Missouri, Mississippi, Louisiana, and North Carolina.
Caesar's has had a very low net income for its size, a mere $456 million last year. Harrah's had a much healthier $292 million profit. With the buy, Harrah's could get a big presence in Las Vegas, something it has lacked.
In one month, the casino industry has gone form have four big players to possibly having only two. This comes as the industry is doing well and as even more states are pushing legalized gambling, the latest being Pennsylvania's legalization of slot machines statewide.
9:00:56 PM 
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