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Eldorado given approval to buy Hollywood Casino
Gamblers visiting Hollywood Casino in Shreveport can expect a significant renovation -- with special emphasis on food and wine -- now that Eldorado Resorts has been given unanimous approval as the new owner.
The Louisiana Gaming Control Board on Tuesday approved the sale, a transaction of $154 million. Eldorado, which is family owned, expects to rebrand the property as Eldorado Casino by December.
The biggest change at the casino will be an improvement of the food and wine. Family member Gregg Carano, a chef, and another chef from the family's Reno properties will arrive at Hollywood today to begin making changes in the menu.
"We are a big family of chefs", Carano said. "We will have top chefs and top hosts".
The casino's design will reflect the company's Reno property that opened in 1973. Crews will begin a major renovation including interior and exterior signage, carpet, wall treatments, seating, more advanced slot machines, gaming tables and plasma TVs throughout the casino.
The new general manager will be Mike Whitemaine, most recently assistant general manager of the Silver Legacy Resort Casino in Reno, a partner casino partially owned by the Carano family. "He's been with our family for 30 years", family member Gary Carano said.
"We never could afford Frank Sinatra, but we married food and wine", he said. "Food is a very big thing in our family".
The Carano family owns a vineyard and winery in Sonoma County, Calif., and sells wines in all 50 states under the label Ferrari-Carano.
The company does plan to study bringing in big-name entertainment, another part of its marketing formula in northern Nevada. The company did not respond to questions about the cost of the renovations and improvements to Hollywood.
Eldorado will also plan special events at the casino. A news release issued by the company, Tuesday boasted of its annual Great Eldorado Italian Festival, in its 25th year, and the Eldorado BBQ, Brews & Blues Festival, which just finished its 10th year.
"We feel drawn to that market", Gary Carano said. "We are familiar with the other operators. In the northern Nevada market, Harrah's is a friendly competitor, and my father and I are friends with Bill Boyd, who owns Sam's Town".
Gary Carano said his family feels the Hollywood facility "has a lot of potential and has been underutilized for several years". "Hollywood, which was put in bankruptcy in 2004, has teetered on financial disaster. It recently settled a number of lawsuits for unpaid bills for 52 percent of claims", the State Gaming Control Board said.
Bob Jones, Eldorado Resorts chief financial officer, said the company is borrowing $140 million in first mortgage bonds and up to $20 million in preferred stock. Eldorado will own 76.4 percent of the stock in the new casino company, with the other 23.6 percent going to nonvoting stock held by Hollywood's existing bondholders through a company named Shreveport Gaming Holding Co. Inc.
Jones called the transaction a $154 million deal, but said valuations by financial houses has varied between $155 million and $165 million.
The gaming board approval came over the objection of a minority owner of Hollywood, Shreveport Paddlewheels Inc. The company has legal issues pending in lawsuits in U.S. Bankruptcy and state district court in Shreveport, in its lawsuit charging Hollywood with not living up to its contractual obligations. Shreveport Paddlewheels was a corporation that held the original license granted to Flamingo Casino in New Orleans, owned by New Orleans Paddlewheels.
"We are the party that was the original license holder", said attorney Patrick Klotz of New Orleans, who represents Shreveport Paddlewheels. "We are the party that is being run roughshod over".
But gaming board attorneys said the issues between Shreveport Paddlewheels and Hollywood are decisions to be made by the court and did not affect the legality of the transfer. So the board approved the transfer without mention of the matter.
Source: BonusGambler.com Editors' Choice
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