What Does the Deal Between Caesars and Eldorado Mean for the Players?

Well, can us VP players expect any better pay schedules and comps with Eldorado? Or are they the same typical money grubbers like most casino owners?

And

Now that Caesars has been sold, what changes can Total Rewards members expect? (PS, the email I received from Caesars said it was a merger.)

We'd say the deal between Reno-based Eldorado Resorts and Las Vegas-based Caesars Entertainment could be considered a merger, given that Eldorado winds up with 51% of the stock and Caesars 49%. However, it's also an acquisition, since Eldorado will part with $7.2 billion in cash and around 77 million shares; it will take on Caesars' outstanding debt; its management team will be running the show; and the new company's headquarters will be relocated to Reno.

As for the changes that casino consumers can expect, we hate to say it, but the signs for players, hotel guests, and other costumers don't look particularly auspicious in terms of the casinos that the new company will retain under the Caesars brand.

One indication comes from ThePointsGuy.com. "Eldorado has a long history of decreasing promotions in order to cut operating costs and boost profits." The site quotes from an Eldorado SEC filing from the second quarter of 2015: "Marketing and promotional expenses decreased 18.4% for the three months ended June 30, 2015, compared to the same period in the prior year, due to efforts to reduce advertising expenses at Eldorado Reno and Eldorado Shreveport during the current period, along with reductions in promotional offers.”

Another sign can be seen in the situation at Eldorado's Isle Casino Pompano Park in Florida. Last month, upwards of 93% of the union workers voted in favor of a strike, frustrated by constant reductions to staff levels and amenities for guests; negotiations have been going on for fifteen months, ever since the casino was bought by Eldorado, which proceeded to lay off one-fifth of the property’s work force, according to the union.

Cost-cutting won't be limited to the rank and file and customer promotions; according to gaming reporter Howard Stutz, "Caesars’ centrally managed base of operations has 3,200 people with a cash operating cost of $600 million, while Eldorado’s corporate office currently has 200 people with $40 million of centralized cost."

The CEO of Eldorado Resorts comes from an accounting background; he was the chief financial officer before being promoted. He definitely had his eye on the bottom line when he said, "Merging Eldorado’s casinos into the Caesars Rewards loyalty program will be a revenue enhancement."

Of course, only time will tell what actually transpires, but so far, this deal looks better for the companies than for the players.

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Kevin Lewis Aug-17-2019

Revenue enhancement

Corporate doublespeak for "screwing the customers and not even bothering to wear a condom." The El Dodo in Reno has followed the pattern everyone else has: the VP used to be pretty good and the comps generous, but no mas. Though they do still have a few not-too-lousy machines.
It's notable that the new head bean-counter didn't even condescend to prattle about the merged company's new focus on customer service or some other such tommyrot. He made it clear that El Dodo is going to wring out its customers and employees like a mop. Their properties will be terrible places to work or gamble.

Sandra Ritter Aug-17-2019

It Could Get Worse???

CET made major cuts this year. For years I got offers of $200 free slot play, then $225 for going to CET LV. I'm still Diamond but this year it's $45.  At Hammond Horseshoe for years I got 2 free buffets twice a month, this year it's use your Reward Credits.  I also received $40 free slot play at Hammond.  This year it started at $5 (it takes $10.30 in tolls and more in gas to get there) but now it's 0.  I don't know how Caesars can get any cheaper with Eldorado but if it does looks like I'll either find a different company or save my money all together (since the machines over the last few years have become very tight and it's not fun anymore). By now I've either been to LV or have a trip planned. Nothing this year so far. Should I go in November or December not receiving my normal comped suite, or even room, will be the straw that will break this camel's back.

Sandra Ritter Aug-17-2019

Diamond Lounge

I forgot to mention Diamond Lounge access.  It used to be if you were Diamond (achieved 15,000 Tier Credits either this year or by the end of last year) you had access to the Diamond Lounge.  Now it's 25,000 for the Diamond Lounge, but wait, it's not based on getting those points last year, you have to have earned them this year. Else you use 1,000 Reward Credits.  I see where the Diamond Lounge can be a money drain but the change is extreme.  I can't imagine CET promotions getting worse under Eldorado since they're the pits now.

Susan Johnson Aug-17-2019

Good while it lasted

My dh and I have been of the mind to go while we can because tomorrow is not promised.  As long as we can find full pay and a casino to comp our rooms and most of our food, we'll continue to go.  We're sad to have the perks taken away but it is still a fun vacation.  It's much harder for those of you that live the VP life.  But we have no control except to not play.   I say, if you are going to complain about your glass being half empty, use a smaller glass.  After all, that's what the casino will do with our free drinks!!

O2bnVegas Aug-17-2019

Same here

Sandra Ritter, same story here.  My CET Las Vegas free play is down from hundreds to $45.  I figured something was up when they started that Diamond Lounge (now Laurel Lounge) gouge. My Host keeps calling, offering nothing other than what I get online/snail mail.  Finally I said "To be honest, the other casinos (mLife, Wynn) have much better offers/comps, no need to keep calling me."  In the past a good Host would say "Tell me what you are interested in and I'll see what I can do."  This gal just says "OK. Thanks. Call me if you need anything."  Caesars was my hotel of choice for years, stayed there dozens of times, great comps...not anymore.  Still like Laughlin, the charter flights, will take them as long as they continue.  I can't see that place surviving without the charters, no matter who owns it.

Pat Roach Aug-19-2019

Eldorado vp

Check vpfree2.  Eldorado vp, at least in Reno, is much better than Caesar's vp in Vegas, Reno, and Tahoe.  That, of course, doesn't guarantee that any of the Caesar's properties vp will improve, but there's hope.

Question of the Day - 17 August 2019

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