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27

Eldorado and Caesars complete Merger Deal to become Largest Casino Owner in the World

Tags: Caesars Entertainment, Eldorado Resorts, Indiana, Las Vegas, mergers.
Posted on 27 July 2020 by "T".

Eldorado Resorts Inc. completed its $17.3 billion acquisition of Caesars Entertainment Corp. after overcoming a series of hurdles, including the worldwide pandemic, to become as the largest casino owner in the world.

The New Jersey Casino Control Commission finally approved the merger after two days of hearings with Eldorado executives. An antitrust analyst assured the commission that the deal will not concentrate too much of the local casino market. The new company will still be called Caesars Entertainment, but some are already calling it "New Caesars".

The Indiana Gaming Commission also approved the deal around the same time as Nevada regulators last week. Indiana regulators forced Eldorado and Caesars to sell three of its five properties in the Hoosier State.

Eldorado Resorts Inc. said that the combined company shall now own and operate 55+ casino properties across 16 American states, including eight resorts on the Las Vegas Strip.

Former CEO of Eldorado Resorts now CEO of Caesars Entertainment Inc. Tom Reeg said, "We are pleased to have completed this transformative merger." Reeg said they will welcome the combined company's tens of thousands of employees and aims to create value for stockholders using "strategic initiatives that will position the company for continued growth."

New Jersey's approval was the final hurdle that stood in the way of the merger. The Federal Trade Commission approved the plan back in June after Eldorado sold casinos in California, Louisiana, Missouri and South Lake Tahoe.

In an agreement with New Jersey regulators, the officials of Eldorado assured regulators that the company would not close its three Atlantic City casinos for at least five years and it will spend $400 million improving facilities over the next three years, and reinvest 5% of annual revenue in the years after that.

Once Bally's sale has been finalized, Caesars will own the Tropicana, Harrah's Atlantic City, and Caesars Atlantic City.

First announced in June 2019, the merger was indeed a huge leap for Eldorado, a once-small Nevada company that began in 1973 with a single hotel-casino in Reno.

After billionaire investor Carl Icahn said he bought 10% of Caesars Entertainment in February 2019, he started pushing for a sale of the casino company that filed for bankruptcy in late 2017. He helped install Tony Rodio as the new CEO of Caesars the next month, who helped Icahn sell Tropicana Entertainment Inc. to Eldorado for $1.85 billion.

The only obstacle left was regulator's approval for the merger to become a reality.

Eldorado bought a 51% controlling interest in Caesars at a $17.3 billion valuation. Paid in cash was $7.2 billion and the rest was accounted for through Eldorado stock.

The new Caesars corporate headquarters will be in Reno, but there will be a big corporate presence in Las Vegas.

Source: https://lasvegassun.com/news/2020/jul/20/former-eldorado-resorts-completes-173-billion-acqu/


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24 comments on "Eldorado and Caesars complete Merger Deal to become Largest Casino Owner in the World"

 dule-vu27/07/2020 11:32:26 GMT
you can imagine how big is this business when they will spend 17,3 billion on this transaction!so they will be largest casino owner in the world!you can see how big they were,when they payed in cash 7,2 billion dollars!just sick number in todays world!
 CALICUL27/07/2020 15:38:37 GMT
Interesting situation regarding Indiana regulators who forced Eldorado & Caesars to sell three of five properties in Hoosier State. He did this as if they were owners of other people's buildings. Another detail is these billions that make this casino number 1 in the world.
 dule-vu28/07/2020 14:28:31 GMT
In an agreement with New Jersey regulators, the officials of Eldorado assured regulators that the company would not close its three Atlantic City casinos for at least five years and it will spend $400 million improving facilities over the next three years, and reinvest 5% of annual revenue in the years after that.
 CALICUL28/07/2020 15:52:23 GMT
These contracts have many stipulations... because there it is not easy at all, when you negotiate. Moreover, when the state puts its tail over your business, you have to do as they do. However, both sides are satisfied because was nice for both.

 antonis32109/08/2020 03:58:41 GMT
WoW , $17.3 billion for the acquisition , that's crazy money for sure ,they spend a lot to make this merge real , and this decision and agreement was approved by the authorities , so now there is this casjono giant , the new Ceasars company . They have many casinos , they are for sure a huge player in the market . I want to believe this is good not only for the players of these Caesar's casinos , but for their employeed as well . Good luck for their businesses in this new era Smile
 CALICUL09/08/2020 09:38:25 GMT
Crazy money, but recoverable in a few years, because this industry brings a lot of money. The richest casino owner has over $ 30 billion in wealth. I consider that one who bought has a lot to gain, especially now that he no longer has this rival in competition,
 dule-vu09/08/2020 13:29:57 GMT
I know that every year more and more money come in this industry and that money have bigger value,then its had 10 or 15 years ago,but still when you read about something like this,its crazy how people know that even if they spend this money,they will back it very soon and will earn much more!
 CALICUL13/08/2020 06:46:31 GMT
Last year or two, we had similar news that a casino bought for many billions. This industry is very successful, because it knows how to make a profit. Owners who sold, probably chose to enjoy with peace and vacation for the rest of their lives.
 antonis32113/08/2020 07:21:47 GMT
For sure they will get their money back from this investment . I agree , casinos are a business of billions of dollars , and their owners have billions of dollars as well , as their wealth . Thye will get this money back , as profit from daily businesses in all of these casinos that now this company controls . Although ,with the lockdown and the restricitons , it might take somemore time tto get things on track like before .
 dule-vu13/08/2020 12:09:56 GMT
as we can see its same as for online casinos in last years,now we have this kind of transacations for big casinos company,where you can play live!companies want to be bigger and they by also big companies,not just small one's!its crazy what kind of money is in this industry and what amount will be in future!
 CALICUL14/08/2020 06:56:40 GMT
They will certainly have a worse time. Covid 19 is guilty of restrictions but also because of fact that in online environment there are a lot of casinos who steal their customers. When you can't play directly in salons, then people play at home or even from nature on the phone.
 antonis32114/08/2020 09:01:25 GMT
yes dulevu, We have seen many such acquisitions , smaller companies bought by bigger or two big united so as to create a bigger company , with less expenses and losses , so as to survive or have bigger profits than before . Not sth new in any business . Online casinos and poker rooms also have done it in the past . They got the approval of the gaming commission , so there is no problem with the competition overally . Hopefully they will keep all the employees or even hire new ones .
 dule-vu15/08/2020 16:10:45 GMT
if not in this year,in next we will have again some new "deal" on online casino company,slot company or casino place like this one!corona will change business and somebody will change thinking about it and to let go!we will see who is next on this market!
 CALICUL16/08/2020 08:05:39 GMT
People have a lot of money and when they have nothing to do with them buy their competition for make even more. This is usually because some companies swallow others, because it offers an interesting proposal or rivals in business want to sell.
 antonis32122/08/2020 14:50:36 GMT
Ifit's for the interest of all sides and parts , for their profits , their future expansion plans , the reduce of costs , the more opportunities to have to survive competition , a merger will takae place . Also if one of the businesses is successfull and the other as well , but also sold in very good price , for one reason or another . They have better chance to stand profitable together . I believe this deal will be benefitial for everyone , not the first not the last we've seen or will see for sure , live or online
 dule-vu23/08/2020 12:22:24 GMT
when somebody sell something like this or some big company,that doesnt mean that he need money,he maybe just see that is good time to sell and get great money for it or he had enough of that business and want to start something better or just to enjoy in life and that money!its same when somebody sell football or basketball club!
 antonis32123/08/2020 18:26:47 GMT
Yes dule vu , sometimes it's for the interest of both parts , regarding the growth of their businesses and the seeking of more profits and less expensives .
But sometimes , only one part wants to make its business greater , by expanding and getting a gret slice of the pie , a bigger part of the market share.
The other part might want to sell because of many annual losses so they cannotcontinue alone in the business/market , or maybe the owner finds it a great opportunity to sell now that his business is at its peak and earn a tone of money Smile
It's a free market to seek more profits and power Smile
 CALICUL24/08/2020 09:52:08 GMT
Where are fewer casinos but stronger, it is much better because there are many prizes and in the small ones they cannot be as big. Important thing is to play for a substantial profit and let's not think about who is boss here.
 antonis32124/08/2020 22:32:17 GMT
Yes calicul , this sure benefits the players-customers , either this is made online or in other casinos in all over the world. The biggest a poker room or a casino it is , the biggest games with the highest guarantees it will offer , the biggest jackpots and the greatest rewards , prizes , opportunities to make a tone of money will be given to their customers . For real , emerges to a bigger business entity can favour customers a lot , as long as it doesn't kill competition mostly orcompletely ofcourse , that would not be good .
 CALICUL25/08/2020 10:12:17 GMT
There is a live and online competition between casinos and it is a very serious one. I respect that, but there must be a calculated number, like this on the world market. When there are too many, profit for players is much lower.
 dule-vu25/08/2020 12:43:30 GMT
antonis,on other hand its not good that you have few big companies,no matter are they are online or to casino in las vegas,because they would have then same strategy and same promotion and they will not fight so much for players!for us its best they we have different owners and then they will offer much more,because they will want that they come to play and not to spend money on other places!
 CALICUL27/08/2020 17:22:08 GMT
It would be interesting now for someone to make a very big offer and also buy Eldorado Resorts. I think it would be the highest price paid for something that is not online. These money is big because casinos really make a lot of dollars in America.
 antonis32128/08/2020 08:31:27 GMT
dule vu , the best I think is to have some giant businesses entities , after emerges , live or online , not only one , three four or more of such very big companies , but also have smaller businesses , smaller poker rooms or casinos , for competition reasons , for more promotions or chances , or for the big companies to know that players can turn to other choices anytime , if all big players begin behaving like a cartel Big Smile Bigger businesses can offer bigger promotions , winnings , chances in casino industry , everywhere , as long as they are not a cartel all together Smile
 CALICUL28/08/2020 18:09:15 GMT
Cartels do not take place there but Indians are more likely to buy many casinos. They had high priority in those areas, that were owned by them and many have a lot of money. Many clients who play in their halls made many millionaires.

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