Since being acquired by Eldorado Resorts for $17.3 billion this summer, Caesars Entertainment (NASDAQ:CZR) has become a hot stock. Since my July 23 story on the combination, CZR stock is up 53%. This despite Eldorado borrowing $6.6 billion for the purchase and taking on $9.7 billion of Caesars debt.
In addition to getting the iconic Las Vegas casino, and taking its name, Eldorado got Bally’s, Harrah’s, and a host of other brands. The deal showed how gambling has become a national business.
Now the stock is hotter because of Caesars’ pending purchase of William Hill, the British bookmaker. The deal lets Hill escape the private equity clutches of Apollo Global Management. It also gives Caesars pole position for the next gambling revolution, namely the internet.