Published on: April 29, 2026, 01:53h.
Updated on: April 29, 2026, 01:53h.
- The city has secured an upfront payment of $103 million for nine years of rent on Caesars New Orleans.
- This represents a financial advantage for the gaming corporation.
- The remaining 23 years of the lease are not impacted.
Financially challenged New Orleans has successfully negotiated a deal with Caesars Entertainment (NASDAQ: CZR), which runs a prominent casino hotel in the region.
As part of the newly established agreement, the casino powerhouse will provide $103 million upfront for the initial nine years of rent on its New Orleans location, translating to an 8.75% discount rate. The subsequent 23 years of the lease will remain unaffected.
“This is not a new charge or tax. However, we have identified a way to replenish our fund balance with over $100 million once this transaction is completed,” remarked Mayor Helena Moreno during a press briefing on Tuesday.
Before this Caesars deal, New Orleans had only $35 million in its reserve fund, while city policies recommend this should be 20% of the budget, roughly $160 million.
Mutual Benefits
Similar to many real estate transactions between casino operators and real estate investment trusts (REITs), the Caesars/New Orleans agreement exemplifies a quid pro quo arrangement.
Moreno acknowledged that by accepting the $103 million lump-sum payment, the city is forfeiting $4.7 million in annual income for those nine years, but immediate cash flow is crucial for strengthening reserves and possibly enhancing its credit rating.
Although the financial relief may appear minor for Caesars, it is significant as the operator navigates $11.9 billion in outstanding debts.
The proposal awaits approval from the New Orleans City Council, which plans to review the agreement next week.
Caesars New Orleans Timeline
Initially launched as Harrah’s New Orleans in 1999, the venue adopted the Caesars name approximately two years ago. Regarded as one of the company’s flagship properties outside Las Vegas, Caesars is committed to its New Orleans presence after securing a gaming license in 2019 that runs until 2054, contingent upon a minimum investment of $325 million in property upgrades.
The casino hotel was a pivotal part of a $3.2 billion deal announced in 2019 involving VICI Properties Inc. (NYSE:VICI) and Eldorado Resorts, which ultimately acquired Caesars, alongside Harrah’s Laughlin and Harrah’s Atlantic City.
In essence, Caesars pays rent to VICI, the REIT that owns the building in New Orleans, while also paying rent to the city for the land on which the casino hotel stands.