I would venture that the proposed deal with GN won't happen.
A few reasons why:
1. Mark isn't going to step down as CEO to allow this to happen anyway. That's part of the deal.
2. What do they truly gain out of such a deal? Answer - Nothing.
The move for them right now is to continue to pursue purchasing properties from Jack Entertainment. They would pick up six casinos overall. Five in Ohio and one in Michigan. That would extend their footprint in the Midwest.
They have quietly sold the land in a few of their strip properties to VICI which is their real estate operation. In return VICI owns the land and then leases it back to Caesar's. Part of Caesars itself is that way and so is Harrah's. They would do the same kind of structure with the Jack Entertainment properties if they can strike the right deal to land those casino's.
Regarding sportsbetting right now they have exposure to 14 states. They will be in great shape and they aren't going to do it half assed as Fan Duel has done.
This is a stock you buy now and you sit on it for awhile. There is fear in the Vegas market now because they feel they aren't making enough money and traffic overall to the strip has slowed down. For good reason, when you are gouging people with $30+ Resort Fees and $30 plus parking fees, sure that money goes to the coffers, but people see that or hear about that and that visit and money goes elsewhere.
Vegas Strip once again needs to revitalize itself. Remember when they tried family friendly? How did that turn out? Now it's fee crazy. Sooner or later the suits will get it. But it won't be until someone steps out of the comfort zone and makes the bold move and when it works, they will all revert back.
The other thing they are comparing numbers to last year. Remember the Mayweather/McGregor fight. That was HUGE business. They've had nothing close to that this year.
With all that said...….. the market has been beaten down, gaming stocks have taken a huge hit across the board. Some things to look forward to, Caesars is going to have one of the biggest onsite convention floors anywhere. They are going to suck in a lot of convention business from the LVCVA. That brings people to the property where they are going to spend a lot of money.
The Raiders will be playing basically behind the property, where do you think people are going to stay for those coming from out of town to see their team. People that travel to watch their teams play on the road have money. They won't be staying at Circus Circus, they want the best, Caesars is best in class.
While there appears to be a lot of negatives due to the stock price where it is, don't be fooled. You're being dealt a natural black jack here paying 3/2 don't sit on the sidelines and wait to time it, get in, forget about it and just enjoy life. Check the thread every so often and when it's time to cash out, you'll be glad you listened to me.
