Not all is well for casino and gambling giant Caesars Entertainment. The casino is struggling with revenues even after a merger deal was announced earlier this year.
The gambling operator has reported a third-quarter loss of $359 million. For the same period the previous year, Caesars had posted positive figures and had reported profits.
According to the figures released by the Caesars, it had lost about 53 cents per share. Moreover, losses, adjusted for asset impairment costs, came to 9 cents per share.
The Q3 results fared worse than the expectations by Wall Street analysts. Earlier the average estimate of five analysts surveyed by Zacks Investment Research was for a loss of 4 cents per share.
However, Caesars Entertainment grossed $2.24 billion in revenue during the third quarter of 2019. Analysts from Zacks Investment Research had predicted Caesars’ revenues to be around $2.18 billion.
Recently, Caesars Entertainment Corp confirmed the sale of its Rio All-Suite Hotel and Casino in Las Vegas. The casino operator said that the deal has been finalized for $516.3 million.
The Rio All-Suite Hotel and Casino on the Vegas strip has been hosting the World Series of Poker for the last 15 years. The casino bought by Imperial Companies, a New York-based real estate company.
According to the purchase deal, Caesars will continue to operate the gambling venue for two years. However, Caesars would pay $45 million in rent for the first two years and if it wishes to continue to operate the property for the third year, the annual rent would be $7 million.
The gambling operator also confirmed that they are no longer pursuing a casino license in Japan while all top gambling operators from across the globe leave no stone unturned to stay ahead in the race.
Explaining the move, Chief Executive Officer Tony Rodio said in a statement to the press that “Caesars management made the decision out of sensitivity to the Japanese government and business partners, who must make decisions this year to advance the casino process.”