The highly-publicized merger between Eldorado and Caesars has been taking place since June of 2019. It’s the largest deal ever made between two US casino companies. According to new reports, this massive merge should be completed by next month.
It’s exciting news for both of these companies. The process of joining forces has been hugely expensive and time-consuming. Today, we’re going to look at what still needs to be done for the merger to be officially approved.
Let’s get into it!
FTC Officially Approves Eldorado Resorts-Caesars Entertainment Deal
Eldorado Resorts is one of the fastest-growing casino companies in the country. It owns and operates several major casinos around the country. Officials within this company have continued to tell the media that they plan to expand as soon as possible.
Back in June of last year, news broke that Eldorado had agreed to pay $17.3 billion to acquire Caesars Entertainment. As we just mentioned, this was the largest merger ever made between two casino companies. Many analysts immediately began looking into what it takes to complete a deal like this one.
Both Eldorado and Caesars Entertainment own major casinos in different states. That means both companies need to receive approval from various state gambling commissions before this deal can go through. They also need to get permission from the Federal Trade Commission.
This process takes time. Initially, officials within these companies told the media they expected the deal to be completed by June of this year. That date has now been pushed back. Fortunately, the FTC recently approved the merger between Eldorado and Caesars to move forward.
This was a crucial step for both of these companies. Now, only a few more states need to give the signal for the deal to move forward. When can we expect that to take place?
With State’s Approval, the Merger Between Eldorado and Caesars Will be Complete
It’s not completely unusual to see casino companies merge. It’s happened several times over the years, yet never between two companies as large as Eldorado Resorts and Caesars Entertainment. State Gaming Boards want to ensure that this deal does not result in the companies forming a monopoly.
Many states have already approved the deal. The FTC seems content with that’s coming together, as well. Now, these companies only need approval from regulators in Nevada, Indiana, and New Jersey.
Meetings between the heads of these companies and the various state commissions have now been scheduled to take place in Nevada. The Nevada Gaming Control Board will meet to discuss the matter on July 8th. Indiana regulators are meeting on July 10th and ones in Indiana will do the same on July 15th.
After receiving approval, the merger between Eldorado and Caesars can finally be complete. Eldorado CEO Tom Reeg is confident this will take place. Most gaming analysts predict the states will give approval for this deal, as well.
The stars seem to be aligning here. One condition the FTC required was for Eldorado Resorts to sell several of its major properties. News recently broke that these casino sales have officially concluded.
Eldorado Resorts Has Officially Sold Two Major Casinos
The FTC recognizes how powerful these two companies will be once this deal concludes. As a result, they want to ensure that things are still fair for markets affected by the merger. The government body ordered Eldorado Resorts to sell two properties in order to receive approval for the merger.
The Montbleu Resorts & Casino in Lake Tahoe and the Isle of Capris in Kansas City were both recently sold by this company. It was a serious move, as both were known to be big money-makers for Eldorado. Obviously, the merger between Eldorado and Caesars proved to be more important.
This is just one more step needed to finalize this important merger. Now, much of the focus is on the meetings taking place this month in Nevada. Only three more Gaming Boards need to give their official approval for this bill.
Most predict all three will give the green light for this merger to move forward. Eldorado and Caesars have both checked all of the boxes needed to get this deal finished.
Anything is possible, though. The country is still dealing with the effects of Covid-19 and many are unsure of how the land-based casino industry will look over the next 12 months. We’ll be sure to offer updates on this situation as it unfolds.
Do you think the Eldorado Resorts-Caesars Entertainment merger will finish this summer? Let us know in the comments section below!