Please ensure Javascript is enabled for purposes of website accessibility

Harrah's New Horseshoes

By Jeff Hwang - Updated Nov 16, 2016 at 1:43PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Harrah's to rebrand two Caesars properties as Horseshoes.

With its recent acquisitions of Caesars Entertainment and Horseshoe Gaming complete, casino behemoth Harrah's Entertainment (NYSE:HET) is expected to move forward predominantly with three brands: Harrah's for retail, the Horseshoe for high-end local casinos, and Caesars for premium resorts. The company just completed the Caesars acquisition in June but is already taking steps in its new brand scheme.

On Thursday, Harrah's announced that it would rebrand the newly acquired Caesars Indiana property in Elizabeth, Ind. -- just across the river from Louisville, Ky. -- using the "legendary" Horseshoe brand. Caesars' Grand Casino Biloxi along the Mississippi Gulf Coast will get the same treatment, making the two casinos the fifth and sixth Horseshoe-branded properties under Harrah's control.

Harrah's expects the conversion process to take "a year or more" as the company moves to make upgrades to customer service, dining, and entertainment at the properties.

I'm actually a little surprised that the company chose the Caesars Indiana property for rebranding; after all, Caesars is one of its three core brands. In addition, the resort-style property is a bit more comprehensive than any of the Horseshoe properties acquired, with an 18-hole golf course and 24,000 square feet of convention space.

But the casino and hotel fit the bill perfectly. The casino is a relatively spacious four-level riverboat with a recently expanded 21-table poker room. It has virtually no competition, and the 141 overall table games (including poker) also make it the biggest game across the riverboat states. As for the lodgings, just change the wreaths into horseshoes (they're about the same shape anyway), and the 503-room Caesars hotel could easily be a Horseshoe.

The conversion of the Grand Casino Biloxi in Mississippi will further extend the reach of the Horseshoe brand, and it makes sense -- the company also has the Grand Casino Gulfport on the Gulf Coast. Other players operating in that market include MGM Mirage (NYSE:MGM), Penn National (NASDAQ:PENN), and Isle of Capri (NASDAQ:ISLE).

Back in September 2003, Harrah's announced the $1.45 billion acquisition of Horseshoe Gaming, giving the company the three Horseshoe-branded riverboat properties the company now owns. In November 2004, the company also announced that it would convert the Bluffs Run racino (race track and slot machine operation) in the Council Bluffs, Iowa market -- where the company competes head-to-head with Ameristar Casinos (NASDAQ:ASCA) -- into the company's fourth Horseshoe-branded property following an expansion. It's expected to be complete during the first quarter of 2006.

Horseshoe Properties

Casino

Gaming Space*

Table Games

Slots

Hotel Rooms

Horseshoe Tunica

78,000

87

2,114

507

Horseshoe Hammond

48,273

49

2,012

-

Horseshoe Bossier City

29,860

62

1,564

606

Bluffs Run**

68,000

36

1,900

-

Grand Casino Biloxi

106,300

89

2,800

1,000

Caesars Indiana

93,000

141

2,349

503

*Square feet
**Upon conversion to Horseshoe Council Bluffs in 2006


Place your bets on further Foolishness:

Fool contributor Jeff Hwang owns shares of Ameristar Casinos. The Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Penn National Gaming, Inc. Stock Quote
Penn National Gaming, Inc.
PENN
$30.20 (-2.33%) $0.72
MGM Resorts International Stock Quote
MGM Resorts International
MGM
$33.00 (-7.54%) $-2.69
Ameristar Casinos Inc. Stock Quote
Ameristar Casinos Inc.
ASCA.DL

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
349%
 
S&P 500 Returns
122%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/18/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.