The casino business in Nevada was up and running last week for the first time since mid-March. That is when the coronavirus shut every thing down to slow its spread, June 4 marked the grand reopening. Casinos opened with a list of restrictions and requirements to protect the health of workers and patrons. However, the initial response has been extremely positive. Eldorado Resorts is one of the industry leaders in the Nevada gaming industry.
The company owns and operates a heavy concentration of gaming properties in Reno and Lake Tahoe.
The biggest names on the list are:
- Eldorado Resort Casino
- Silver Legacy Resort Casino
- Circus Circus Hotel Casino in Reno
- MontBleu Resort Casino in Lake Tahoe
- Tropicana Laughlin
All five of those properties were up and running this past weekend. Along with the company’s casinos reopening, its stock price is also on the rebound. Late week trading pushed the price up eight percent. These are trading levels as high as the price was in early March.
At this point in time, Eldorado does not compete in Las Vegas as the biggest gaming market in Nevada. That will change dramatically when its deal to acquire Caesars Entertainment for $17.3 billion finally closes. This is expected to take place in the coming few months. Caesars owns and operates eight different casinos on the Las Vegas Strip. Most of those properties reopened on June 4 as well.
Over the past month, gaming investors have been bullish on the industry. This is especially true for companies such as Eldorado with a strong regional presence. This interest was driven by Nevada’s reopening plans.
Eldorado has 23 casinos in its total property portfolio. Now that 16 have reopened, the attention is now focused on the remaining seven. One in Indiana could open my mid-June. A casino in Illinois and two in Colorado may have to wait until the end of the month. The longest wait could be in New Jersey. The green light to reopen the Tropicana in Atlantic City may not come until July.
Along with every other casino in Nevada, Eldorado casino properties remained focused on the health and welfare of their employees and guests. A wide array of health and safety measures have been put into place. This includes social distancing protocols through limited casino access.
All of these measures have been mandated by the Nevada Gaming Control Board (NGCB). Each casino must have a board-approved plan in place before reopening its doors.
Part of the company’s plans before the virus outbreak was the proposed sale of the MontBleu. The original plan sold this Lake Tahoe property to Maverick Gaming. That plan fell apart. In April, the new buyer filling the void was Twin River Worldwide Holdings.
There was quite a bit of speculation whether the closing on Caesars Entertainment would still take place. All current signs indicate that everything is still a go. This will clearly elevate Eldorado’s standing in the entire casino gaming industry.
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