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Caesars Now Owns 76% of Horseshoe Baltimore

by Staff
Caesars Now Owns 76% of Horseshoe Baltimore

Caesars Entertainment, the US-based igaming and hotel operator, recently announced it would be buying a 76% stake in Horseshoe Baltimore. The financial parameters of the arrangement announced on Thursday have yet to be released, but it is believed to have been a significant investment.

The full details of the purchase will be released on Caesars’ financial statements soon. Jack Entertainment, CVPR Gaming Holdings, LLC, STRON-MD Limited Partnership, and PRT TWO, LLC are among the other owners of the Horseshoe Baltimore.

Why Did Caesars Buy Horseshoe Baltimore?

The deal will see Caesars take control of the $442 million casino, which first opened seven years ago. The casino currently has a 122,000-square-foot gaming floor, and with news that legal sports betting is soon coming to Maryland, it will most likely also include sports betting kiosks.

Horseshoe was able to reverse months of year-over-year gross gaming revenue decreases in July this year, posting gaming revenue of $19.34 million, up 22.4% from July 2020 and similar to the $19.38 million earned in July 2019.

Caesars Entertainment is interested in expanding its control over the US market as it fends off competition from other igaming operators. The US is currently the world’s fastest-growing sports betting market as more states look to legalize and regulate wagering on sports. This growth means it’s the perfect time for Caesars and other operators to gain control of markets as they emerge.

Additionally, by purchasing the Horseshoe Baltimore, an established land-based casino and racetrack in the city of Baltimore, Maryland, Caesars gains access to the Baltimore market. Although revenue at the casino has been decreasing, legalizing retail sports betting would bring a new source of revenue.

With a strategic location near M&T Bank Stadium, where the Orioles and Ravens play home games, Horseshoe should see a further rebound in the months ahead and is a potential benefactor of the legalization of sports betting.

Although Caesars’ acquisition of Horseshoe Baltimore is seemingly based on the anticipation of Maryland legalizing sports betting, there’s no clear indication of when that will happen. With two weeks before the start of the upcoming NFL season, there is no definitive launch date for retail or online sports betting in Maryland at the present time. The opening date for sportsbook application submissions has yet to be announced by the Maryland Lottery and Gaming Commission.

Despite the fact that regulations and license requirements are publicly available, officials are likely to take a few weeks to finalize each application. Maryland sports betting will most likely not commence until the NFL season of 2021 has already begun.

Moving towards regulated sports betting can be a slow process for US states. Despite this, Caesars Entertainment’s acquisition of the Horseshoe Baltimore is part of a long term strategy and should pay off when the first sports betting licenses are awarded in the state.

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