Florida Casino Workers to Strike over Caesars/Eldorado Resorts Deal

  • Eldorado Resorts announced it was buying Caesars Entertainment via a $17bn deal
  • UNITE HERE Local 355 sprang into action upon news of the merger 
  • Employees feel the deal will result in job losses plus lower wages and benefits
STRIKE stamp
Employees of Eldorado Resorts are ready to strike due to a new Caesars Entertainment acquisition deal.

Employee frustration launches strike

Eldorado Resorts casino workers are unhappy with news that the company is acquiring Caesars Entertainment via a $17bn (£13bn) deal. Employees at Isle Casino Pompano Park, an Eldorado Resorts property in Florida, have authorized a strike after 93% of members of the UNITE HERE Local 355 voted in favor. The general concern is that the deal will result in lower wages, job losses, and other issues.

For more than fourteen months, employees of the Isle Casino have been negotiating with the owner, Eldorado Resorts. They are both dissatisfied and frustrated with the company’s actions.

Isle Casino was purchased by Eldorado Resorts in May of 2017. Soon after the acquisition, more than 80 unionized casino workers were laid off. As staff members and amenities continued to be cut, employees became more frustrated.

Isle Casino housekeeper Myrtho Bien-Aime said: “I have worked at the casino for almost seven years. I make $9.20 (£7.39) per hour. They made $100 million (£80.3m) in 2018, and our department lost so many workers in the layoff. We work harder for less pay, and they are making so much money. It’s just not fair.”

Once the merger was announced, unionized members decided to approve the strike.

UNITE HERE International President D. Taylor has said the group will not stand by while the transaction leads to significant job losses, lower pays, or benefit cuts for members.

Acquisition deal

Eldorado Resorts is buying Caesars Entertainment via a cash and stock deal worth $17.3bn (£13.6bn). Once completed, the merger will create the largest gambling firm in the United States. Eldorado shareholders will own a 51% controlling interest in the new company.

All properties of Caesars Entertainment and naming rights will be handed over to the Eldorado Resorts brand, which will assume Caesars’ debts. In a side deal, VICI Properties will acquire the real estate assets of three Harrah’s locations. The company will pay cash to Eldorado Resorts for the deal in the amount of $1.8bn (£1.4bn) and act as the rent collector for the properties.

This is a big move for Eldorado Resorts, which operates 26 gambling facilities in the US. Once the deal is finalized, it will control 60 properties in 16 states. Brands that Eldorado Resorts will take on include Caesars Palace, Harrah’s, and Bally’s.

Eldorado Resorts will now have to figure out how to move forward due to the impending strike.