One of the biggest casino entertainment companies based in Reno, Nevada is officially making the move to Atlantic City. News is coming out that Eldorado Resorts has been granted a permanent casino license for the newly-purchased Tropicana Casino. Will this venture be successful?
Eldorado is one of many major gaming companies moving into Atlantic City in recent months. It’s a great sign for this popular gambling hub. Let’s look at what we know of the Eldorado-Tropicana purchase so far.
Eldorado Resorts Purchases Tropicana Entertainment
In April of 2018, Eldorado Resorts announced one of the largest casino purchases in recent years. This major company purchased Tropicana Entertainment inc. for $1.85 billion. With this purchase came seven casinos spanning six different states.
Eldorado acquired all of the casinos previously operated by Tropicana. It includes two in Nevada, and one in Indiana, Louisiana, Mississippi, Missouri, and New Jersey. The latter is the Tropicana Casino and Resort, Atlantic City. Acquisition of this AC hotel-casino is fantastic, as it’s proven to be one of the most successful in the city.
Gary Carano, CEO of Eldorado, is extremely excited about the future of his company. He told the media last year, “With our proposed acquisition of Tropicana Entertainment, Eldorado Resorts is yet again pursuing a large transaction that is expected to be accretive, further increase the scale of our regional gaming platform and drive free cash flow growth.”
Of all the casinos that Eldorado now operates, the one in Atlantic City appears to be the most lucrative. A month before the deal closed on this purchase, Eldorado was granted an interim license to run the Tropicana Atlantic City. Now, this company has been given a permanent license.
NJ Casino Control Commission Approved License Request
At 10:30 local time, the New Jersey Casino Control Commission held a meeting to review Eldorado Resorts request for a permanent casino license. A few hours later, it was announced that the request has been granted.
NJ board has given the Eldorado a plenary qualification to officially take control over the Tropicana casino and hotel. As we mentioned earlier, this casino is one of the highest-earners in Atlantic City. Officials did not want to delay a major company from taking the reigns and helping to continue this success. It’s unclear if the NJ Commission asked for measures to ensure the local community benefits from the casino earnings.
Executives in Eldorado have to be happy right now. This company now has complete authority to operate the 2,400 room hotel and casino. What does this mean moving forward?
Eldorado and Caesars Merger Still On the Horizon
Rumors have been circulating that Eldorado and Caesars are set to announce a merger in the next few weeks. These two gambling powerhouses are actively working to set the price-stock deal terms. The acquisition of Tropicana will surely give Eldorado some leverage.
These two companies began talks to merge back in March. The purchase of Tropicana gave Eldorado a 28.5% stake in Caesars. With these two now seemingly in business together, a merge makes complete sense.
Of course, both companies will need to go through a lengthy approval process before any merge can be finalized. Caesars already maintains a heavy presence in Atlantic City, and with Eldorado Resorts now on board, New Jersey’s casino commission may be concerned with the two companies holding such a large portion of the market.
Things are definitely looking good for Eldorado right now. Even if a merge with Caesars doesn’t come to fruition, they’ve still gained control over one of the most successful casinos in Atlantic City. Stay tuned for updates on the situation.