PART I
Item 1. Business.
Overview
We are a gaming and hospitality company established in 1973 that owns and operates gaming facilities located in Louisiana, Nevada, Ohio, Pennsylvania and West Virginia. Our primary source of revenue is gaming, but we use our hotels, restaurants, bars, shops and other services to attract customers to our properties. We were founded as a family business by the Carano family and continue to maintain our commitment to customer service, high-quality food and beverage and outstanding amenities. We believe that our extraordinary level of personal service and the variety, quality and attractive pricing of our food and beverage outlets are important factors in attracting customers to our properties and building customer loyalty. We own and operate the following properties:
In addition, Scioto Downs, through its subsidiary RacelineBet, Inc., also operates Racelinebet.com, a national account wagering service that offers online and telephone wagering on horse races as a marketing affiliate of TwinSpires.com, an affiliate of Churchill Downs, Inc.
Eldorado Resorts, Inc. ("ERI" or the "Company"), a Nevada corporation, was formed in September 2014 to be the parent company following the merger of wholly owned subsidiaries of the Company into Eldorado HoldCo LLC ("HoldCo"), a Nevada limited liability company formed in 2009 that is the parent company of Eldorado Resorts LLC ("Resorts"), which owns Eldorado Shreveport, Eldorado Reno and the interest in the Silver Legacy, and MTR Gaming Group, Inc. ("MTR Gaming"), a Delaware corporation incorporated in 1988 that owns Mountaineer, Presque Isle Downs and Scioto Downs (the "Merger"). Effective upon the consummation of the Merger on September 19, 2014 (the "Merger Date"), MTR Gaming and HoldCo each became a wholly owned subsidiary of ERI and, as a result of such transactions, Resorts became an indirect wholly owned subsidiary of ERI.
Properties
As of December 31, 2014, we own or operate 431,609 square feet of casino space, containing 7,829 slot machines, 240 table games, 2,150 VLTs and 3,282 hotel rooms.
For financial reporting purposes, we aggregate our properties into three reportable business segments: (i) Eldorado Shreveport; (ii) Eldorado Reno; and (iii) MTR Gaming. For further financial information related to our segments as of and for the three years ended December 31, 2014, see
Note 17, Segment Information, to our consolidated financial statements presented in Part IV, Item 15. Financial Statement Schedules.
The following table sets forth certain information regarding our properties (listed by the segment in which each such property is reported), as of and for the year ended December 31, 2014:
| |
Year Opened or Acquired |
Casino Space (Sq. ft.) |
Slot Machines |
VLTs | Table Games |
Hotel Rooms |
Hotel Occupancy |
Average Daily Rate |
|||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Eldorado Shreveport |
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Eldorado Shreveport |
2005 | 28,209 | 1,474 | N/A | 53 | 403 | 89.6 | % | $ | 64.50 | |||||||||||||||
Eldorado Reno |
|||||||||||||||||||||||||
Eldorado Reno |
1973 | 76,500 | 1,223 | N/A | 48 | 814 | 82.0 | % | $ | 72.57 | |||||||||||||||
Silver Legacy(1) |
1995 | 89,200 | 1,314 | N/A | 63 | 1,711 | 63.4 | % | $ | 79.72 | |||||||||||||||
MTR Gaming |
|||||||||||||||||||||||||
The Mountaineer Casino, Racetrack & Resort |
1992 | 93,300 | 2,098 | N/A | 39 | 354 | 82.8 | % | $ | 44.93 | |||||||||||||||
Presque Isle Downs & Casino |
2007 | 61,400 | 1,720 | N/A | 37 | N/A | N/A | N/A | |||||||||||||||||
Scioto Downs |
2012 | 83,000 | N/A | 2,150 | N/A | N/A | N/A | N/A | |||||||||||||||||
Eldorado Shreveport
Eldorado Shreveport is a premier resort casino located in Shreveport, Louisiana, the largest gaming market in Louisiana, adjacent to Interstate 20, a major highway that connects the Shreveport market with the attractive feeder markets of East Texas and Dallas/Fort Worth, Texas. Eldorado Shreveport was built next to an existing riverboat gaming and hotel facility formerly operated by Harrah's Entertainment and now operated by Boyd Gaming Corporation. The two casinos form the first and only "cluster" in the Shreveport/Bossier City market, allowing patrons to park once and easily walk between the two facilities. There are currently six casinos and a racino operating in the Shreveport/Bossier City market, which is the largest gaming market in Louisiana. The Shreveport/Bossier City gaming market permits continuous dockside gaming without cruising requirements or simulated cruising schedules, allowing casinos to operate 24 hours a day with uninterrupted access. Based on information published by the state of Louisiana, the six casino operators and racino in the Shreveport/Bossier City market generated approximately $736.1 million, $727.3 million, and $713.3 million in gaming revenues in 2014, 2013 and 2012, respectively.
The principal target markets for Eldorado Shreveport are patrons from the Dallas/Fort Worth Metroplex and East Texas. There are approximately 7.2 million adults who reside within approximately 200 miles of Shreveport/Bossier City. Eldorado Shreveport is located approximately 180 miles east of Dallas and can be reached by car in approximately three hours. Flight times are less than one hour from both Dallas and Houston to the Shreveport Regional Airport.
Eldorado Shreveport is a modern, Las Vegas-style resort with a gaming experience that appeals to both local gamers and out-of-town visitors. Our integrated casino and entertainment resort benefits from the following features: