Maverick Gaming Expands Portfolio with Eldorado Resort Casino Shreveport Acquisition
The acquisition of Eldorado Resort Casino Shreveport by Maverick Gaming was announced in January 2020 for $230 million and was expected to close that year, adding approximately 1,500 slot machines, 50 table games, over 400 hotel rooms, and six restaurants to Maverick’s portfolio, which already included 26 properties across Nevada, Washington, and Colorado.
In an ambitious move that underscores its growing presence in the regional gaming market, Maverick Gaming LLC has announced the acquisition of Eldorado Resort Casino Shreveport. Situated along the picturesque banks of the Red River in northern Louisiana, this acquisition is valued at a notable $230 million. This deal is a testament to Maverick’s strategic expansion efforts, as the Las Vegas-based company has been actively increasing its portfolio through various acquisitions, including card rooms in Washington state and several casinos in Colorado.
The acquisition of Eldorado Resort Casino Shreveport marks Maverick’s 27th casino property, joining its existing assets that include four properties in northern Nevada, 19 cardrooms in Washington, and three casinos in Colorado. With this acquisition, Maverick not only diversifies its portfolio but also strengthens its market presence in a competitive industry.
Strategic Acquisitions and Market Expansion
Industry analysts, such as Barry Jonas from SunTrust Robinson Humphrey, have noted Maverick’s aggressive growth strategy. They anticipate further acquisitions by Maverick, especially as larger entities seek to divest smaller, non-core properties or are mandated to sell due to Federal Trade Commission regulations. The sale of Eldorado’s namesake Shreveport casino was largely expected, as it alleviates FTC concentration concerns ahead of Eldorado’s $17.3 billion merger with Caesars Entertainment—a deal that also grants the merged entity ownership of Horseshoe Bossier City.
Eldorado CEO Tom Reeg has expressed that the divestiture aligns with the company’s goal of debt reduction in anticipation of the Caesars transaction expected to close in the first half of 2020. This strategic move highlights the dynamic nature of the gaming industry, where mergers and acquisitions are commonplace as companies strive to consolidate their operations and expand their market reach.
Enhancing the Gaming Experience in Shreveport
The Eldorado Resort Casino Shreveport is a significant addition to Maverick’s portfolio, featuring 400 hotel rooms, six restaurants, 1,500 slot machines, and 50 table games. Maverick CEO Eric Persson has expressed intentions to cater to the Dallas market, which is approximately 200 miles west of Shreveport. This strategy leverages the legal restrictions on casinos in Texas, positioning Shreveport as an attractive destination for Dallas residents seeking gaming entertainment.
The Shreveport casino industry faces stiff competition, especially from new casinos in Oklahoma that have been drawing Texas residents. Despite this challenge, Maverick’s acquisition represents a vote of confidence in the Shreveport market. From 2014 to 2019, the region’s six casinos experienced a decline in revenues and job numbers, with Eldorado Shreveport seeing a 13.4 percent decrease in revenues in December compared to the same month the previous year. Maverick’s investment could rejuvenate the local gaming industry and enhance the overall entertainment experience for visitors.
A Closer Look at Maverick’s Future Plans
Following the acquisition of Eldorado Resort Casino Shreveport, Maverick has quickly turned its attention to the burgeoning sports betting market in Washington state. CEO Eric Persson has voiced support for legislation that would introduce a regulated and taxed land-based and mobile sports betting industry. This move aligns with Maverick’s strategic vision of diversifying its entertainment offerings and tapping into new revenue streams.
The proposed legislation in Washington aims to legalize sports betting at licensed card rooms, racetracks, and tribal casinos, focusing on professional and select college sports. Maverick’s proactive stance on sports betting underscores the company’s commitment to enhancing the gaming and entertainment landscape, offering a safe and regulated environment for sports enthusiasts.
In addition to its pursuits in Washington, Maverick has applied for sports betting licenses for its properties in Colorado, anticipating the state’s legalization of sports betting in May. This multi-state approach to sports betting illustrates Maverick’s ambition to be at the forefront of the evolving U.S. gaming industry.
Maverick Gaming’s acquisition of Eldorado Resort Casino Shreveport not only expands its physical footprint but also signifies its readiness to innovate and adapt in a rapidly changing market. As the company continues to explore new opportunities and markets, its strategic acquisitions and support for sports betting legislation reflect a dynamic approach to growth and customer engagement.