The merger between Eldorado Resorts and Caesars Entertainment has been ongoing since June of 2019. As many already know, it’s the largest deal ever made between two casino companies. Before this merger can be completed, both companies need approval from various state gambling commissions. This week, the Indiana Horse Racing Commission officially approved Eldorado and Caesars to merge.
It’s fantastic news for these major casino operators. This deal is close to being finalized. Now is the perfect time to look at what still needs to be done for this massive deal to finally conclude.
Let’s get into it!
Meetings With State Gambling Commissions Have Concluded
Back in June of 2019, Eldorado Resorts shocked the US gambling industry by announcing it paid an incredible $17.3 billion to acquire Caesars Entertainment. Both Eldorado and Caesars have major casino-resorts all over the country. This merger would form the largest casino company in the United States.
It takes a long time for something like this to come together. Various state gambling commissions need to approve this merger. Before it could come together, the FTC also needed to ensure this deal would not result in a monopoly.
After more than a year, it seems this merger is nearly finished. The FTC has officially given the green light for both companies to join forces. After, only three more state gambling commissions needed to approve the deal.
This month, members of Eldorado and Caesars have been meeting with members of the New Jersey, Indiana, and Nevada gambling commissions. Nevada gave its approval for the deal last week. Only two more commissions were left.
Officials within Eldorado and Caesars met with regulators in Indiana on July 10th. Some felt that these commission members may find some issues with the deal. Fortunately, they have given the green light for things to move forward.
Indiana Horse Racing Commission Approves Eldorado and Caesars to Merge
The meetings taking place in Las Vegas right now are historic. With approval from the three commissions, these companies can finally come together. New reports confirm that two of these commissions have now officially given the green light.
The official Indiana Gaming Commission approved this deal to move forward last Friday. Today, members of the Indiana Horse Racing Commission unanimously voted to allow Eldorado and Caesars to merge, as well. It’s the final hurdle needed for both companies to come together in Indiana.
With this decision, horse racing licenses from Harrah’s Hoosier Park and the Indiana Grand can now be transferred from Caesars to Eldorado Resorts. Of course, there are 22 conditions that must be met for the licenses here to remain valid.
Eldorado Resorts’ CEO Tom Reeg commented on the approval during the meeting, promising to help grow the state’s gambling industry.
“We know that racing is why you have the casino opportunities that you have in these two properties, and our pledge to you is to drive that racing business to another level,” Reeg said. “You’re already at a really high level. We’ll work to take it even higher.”
With the news, these two companies only need approval from one more state. Investors are now looking closely at how Eldorado’s share prices may change over the next few weeks.
Investors Are Now Looking Closely at Eldorado Resorts
Everyone feels that commission members in New Jersey will give the green light for this merger to move forward. Once that happens, Eldorado Resorts will become the largest casino company in the US. Obviously, that’s an exciting prospect for investors.
Recently, several major US casino companies saw their share prices surge. China announced that travel restrictions to and from Macau were lifting. As a result, many US casino companies with property in Macau are likely to see their earnings increase rapidly.
This goes to show how many opportunities are available for investors in this industry. According to a new report, Eldorado’s stock price could increase by an incredible 150% over the next couple of weeks.
It’s an extremely unusual time for the world’s land-based casino industry. Casino companies are doing everything they can to attract new players and increase their revenue. Just about everyone expects Eldorado and Caesars to merge sometime next month.
We’ll continue to offer updates on this historic deal. Our team will also continue to write about the situation over in Macau. Stay tuned!