Caesars Deal: Loyalty Programs Promise Bigger Jackpot

Author: Ahmet Sancar

Caesars Entertainment to Be Acquired by Fertitta Entertainment

Entertainment mogul Tilman Fertitta has agreed to buy Caesars Entertainment for $18 billion, roughly the same amount Eldorado paid in 2019. The pandemic, higher interest rates, and mobile apps have taken their toll on the industry.

Hefty Lease Debt Is a Gamble, but Loyalty Programs Offer a Bigger Jackpot

The deal includes about $11.9 billion of Caesars' outstanding debt. Fertitta is taking on significant lease debt but believes Caesars' loyalty programs will yield substantial returns in the long run.

The all-cash transaction is expected to close soon. PJT Partners is advising Caesars, while Morgan Stanley and Goldman Sachs are advising Fertitta.

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