For more than a year, Eldorado Resorts and Caesars Entertainment have been working hard to finalize their merger. As many are aware, this is the largest deal ever made between two casino companies. This week, the FTC officially gave its approval for the Eldorado-Caesars deal.
This is a huge step in getting this deal done. Of course, it comes at a time when the US casino industry is hurting. Now is the perfect time to look at what still needs to be done in order to complete this merger.
Eldorado Resorts and Caesars Entertainment Delay Merger
Back in June of 2019, the world was in a much different place. The US casino industry was stronger than ever and several new gambling destinations were beginning to emerge around the country. That month, news broke that Eldorado Resorts and Caesars Entertainment were merging.
Eldorado has expanded rapidly over the past couple of decades. According to the reports, this major casino company paid an incredible $17.3 billion to acquire Caesars. A deal of this magnitude cannot finish overnight, though.
Both of these companies own major properties around the United States. In order to finish this merger, both companies need to receive approval from various state gambling commissions. That’s exactly what these companies have been working on for the past few months.
Gaining approval has been taking longer than many analysts initially predicted. Several states have required that these companies sell casinos to get the green light for the merger to move forward. Not long ago, news broke that this deal would not be finalized this June, as some thought at the beginning of the year.
Finishing a deal like this one during a global pandemic certainly hasn’t been easy. It now seems that things are closer to wrapping than ever before. Here’s why that is.
Eldorado-Caesars Deal is Officially Approved by the FTC
The US casino industry is in a very precarious position right now. Over the past few weeks, several states have slowly begun allowing their casinos to open back up. Rates of Covid-19 are now starting to surge around the country, however, and some feel that states may soon force their gambling venues to close once again.
That would have a major impact on both Eldorado Resorts and Caesars Entertainment. It isn’t stopping them from moving forward with their reopening plans, though. This week, the FTC officially approved the Eldorado-Caesars deal.
This was a crucial step in pushing the merger forward. As we mentioned earlier, these companies need approval from many different state gaming commissions. They also needed the FTC to give the green light, making sure everything is done by the books.
Eldorado Resorts and Caesars Entertainment are now closer to merging than ever before. Tom Reeg, CEO of Eldorado, spoke about the news to the media this week.
“We are delighted to announce the FTC’s approval of our planned Merger with Caesars, which is expected to create the largest owner and operator of U.S. gaming assets. We look forward to completing the Merger, subject to receipt of the remaining consents and approvals from regulators in Nevada, New Jersey and Indiana,” Reed said.
As Reeg mentioned, these companies need approval from several more states. Based on what’s being said, this should only take a few more weeks. Many are still concerned about the health of the US casino industry as a whole.
Nevada’s Casino Reopening Plans Are Already Facing Criticism
Nevada is still the biggest and most successful casino industry in the US. Shutting down the casinos here was devastating for the state’s economy. Lawmakers realized something needed to change and officially allowed casinos to open back up on June 4th.
Most residents were excited to see this happen. Cities like Las Vegas rely heavily on tourism and casinos help to fuel that industry. Some workers expressed fear that the safety measures being implemented are not effective enough.
Covid-19 infection rates have been increasing here for the past couple of weeks. Many workers are now demanding that casinos change their safety measures. The Nevada Culinary Union even announced that it was suing some of the casinos on the Strip due to their unsafe working conditions.
Forcing the casinos in Nevada to close down again would be devastating to the local economy. It could also have a significant impact on the Eldorado-Caesars deal. Hopefully, casinos find a way to make things safer for employees without having to completely close down once again.
There are still many questions about how the land-based casino industry will look by the end of the year. We’ll have a better picture by the end of the summer. Make sure to stay tuned for updates.
When do you think the merger between Eldorado and Caesars will finish? Let us know in the comments section below!