Caesars Entertainment Corp. saw revenues drop 14 percent in this year’s first quarter to $1.83 billion; Eldorado Resorts’ take was $473.1 million, down 26 percent for the period.
Caesars reported an operating loss of $66 million while Eldorado’s net loss was $175.6 million.
Caesars logged its best-ever performance during January and February, said CEO Tony Rodio, but the company crapped out when it closed its casinos on 17 March, furloughing 90 percent of workers at those locations as well as a cadre of corporate employees.
Eldorado showed similar strength early in the year but that was “more than offset” by its decision to close its properties on 18 March.
Still, Eldorado’s purchase of Caesars for $8.58 billion in cash and stock is expected to close as planned by the end of June.
Despite Eldorado’s buy, the gaming industry isn’t betting on the come. MGM Resorts International has said in August it could start permanently laying off some of the 63,000 employees it furloughed this spring.
TRENDPOST: As the casino’s close down, so, too, will it drive down incomes of all related businesses and employees. For many already living paycheck to paycheck, it will prove devastating.
Moreover, as economic conditions decline, since there will not be a snap back in travel, tourism, and conventions to bring business back to struggling casino-rich cities, crime waves will grow. And for those businesses that do open back up, theft from employees and customers will increase.
As Gerald Celente says, “When people lose everything, and have nothing left to lose, they lose it.”
