Is Caesars Making the Same Mistake It Made in 2007?
Caesars Holdings (NASDAQ: CZR), which is the name of the merged Eldorado Resorts and Caesars Entertainment, couldn't have completed its leveraged buyout at a worse time. The coronavirus pandemic is causing casinos across the country to burn hundreds of millions of dollars a month, and it's not at all clear that a recovery in demand is coming this year.
Official data hasn't been released yet, but estimates from J.P. Morgan and Visitdata.org show that traffic to casinos has been down around 40% since reopening in early June. That doesn't bode well for traffic until a COVID-19 vaccine is released or some other kind of solution is found to bring visitors back to casinos across the country. Yet Caesars is piling on debt in order to grow, and that could lead to the same mistake its legacy company Harrah's made more than a decade ago.
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Source Fool.com
