Sorry guys, there will be no super casino group. Caesars Entertainment is not looking to merge with Golden Nugget. Sad news for anyone who was expecting one of the biggest gaming mergers in history.

This move would follow on from a string of huge casino deals. Most recently, Pinnacle Entertainment of Las Vegas and Penn National Gaming from Pennsylvania. A deal which cost $2.8 billion dollars to close. Now joined together Penn National Gaming & Pinnacle Entertainment is the Caesars entertainment Corporation logosecond largest gaming group in the US. Speaking about what's happening in the market David Schwartz of Las Vegas Centre for Gaming Research said:

Companies are trying to become more profitable by acquiring more companies and cutting costs

Why did the merger fall through?

So far, there is no real news as to why the Golden Nugget- Caesars merger fell through. One story is that it was never really on the cards. Another story is that Caesars did not want to take on Golden Nugget's debt. Caesars Entertainment already has debts of $9 billion dollars from 2017. Taking on more debt would only cause more problems.

The third story is there was a leak from hedge fund group Canyon Partners. Of course, Canyon PartnersGoldenNugget Casino Logo deny any leaks. Why would Canyon Partners want to leak a huge deal? Canyon Partners already own a 10% stake in Caesars. Meaning, that if Caesar's took on more debt it might hurt the value of their shares. However, this is only a rumor.

Besides the rumors, there is also the issue of branding. Both Caesars and Golden Nugget have incredibly strong brands. Especially, in Las Vegas which is considered the home of land-based casinos. Changing either brand could have been a huge problem.

Why would Golden Nugget & Caesars Entertainment want to merge?

  • Firstly, money. As they say, money makes the world go round. In casino gaming, money keeps all the lights on and wheels spinning. Had Caesars and Golden Nugget joined together a lot of money would be involved. Money for investors, lawyers, and more.
  • Fight online casinos. For many years land-based casinos have been struggling. One of the main reasons for this is  online casinos. Over the years, the number of online casinos has been growing. On the other hand, land-based casinos have been closing. When you compare them you can see why. Online casinos can offer far more than land casinos like casino games. Land casinos are limited to how many games they can have due to their size. Online casinos can host 1,000s of casino games. To fight online casinos many land casino groups are joining up. By creating stronger brands many hope to avoid closing.
  • Power. One of the easiest ways to become more powerful is to grow. Joining together two large casino gaming groups is one way to do that. Together, Golden Nugget & Caesars would easily rival Penn National Gaming & Pinnacle Entertainment.
  • Assets. Based in Las Vegas, Caesars was founded in 1937. Since then, Caesars Entertainment Corporation operates over 50 casinos and hotels. In 2017 Caesars was named as one of the largest casino companies in the world by revenue. So, adding Golden Nugget Casino (also in Vegas)would be a bonus. Golden Nuggets Casino owned by Landry's Inc, is also one of many casinos. Combined, Caesars and Golden Nugget would have a number of large and mid-size casinos. Many of them in prime areas like Nevada, New Jersey, and California.

Will another large Merger ever take place?

As of yet, no other large casino gaming groups are looking to merge. In the future, this may change. With sports betting becoming legal in the US, and more online competitors more casino groups may align. On a smaller note, Caesars is said to be interested in Jack Entertainment. If this deal goes ahead you will find the story on Playcasinos.ca.

313 Free Spins on the House: Straight to Your Inbox

You will find 313 no-deposit Free Spins in your inbox immediately after your newsletter subscription is confirmed!

You will be first to get notified of exclusive offers, free spins, bonuses, tips and news; conveniently sent straight to your inbox with our newsletter.

By subscribing, you confirm that you are 19+ years old and agree to our Privacy Policy