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Caesars Entertainment, one of the world's most diversified casino entertainment providers, today announced the sale of its previously announced Rio All-Suite Hotel & Casino to an affiliate of the Dreamscape Company, owned and controlled by Eric Birnbaum, for $516.3 million (including specific fees, expenses, and $40 million in seller financing provided by Caesars affiliates). Dreamscape acquires, redeploys, and/or develops hospitality, housing, retail, gaming, and entertainment assets.

In connection with the completion of the sale, the Caesars subsidiary entered into a lease agreement with the buyer, which would result in Caesars continuing to operate the property for at least two years and paying a $45 million annual rent. The buyer has the option to pay Caesars $7 million to extend the lease for a third year on similar terms. If the lease terminates and the buyer's request is made, Caesars can continue to manage Rio or provide conversion services to the buyer.

Rio will remain part of the Caesars Rewards network during the lease, and the deal is not expected to make any changes to the guest experience. The World Series of Poker will take place in Rio in 2020, and the host rights remain with Caesars Entertainment after that. More details about the deal can be found on Form 8-K, which will be submitted to the Securities and Exchange Commission.