Merger Between Eldorado and Caesars Should Complete Next Month

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.Eldorado And Caesars Logo

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!

FTC Gives its Approval For the Eldorado-Caesars Deal

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.Stamp Of Approval

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!

The Merger Between Eldorado and Caesars Won’t Finish This Summer

Almost exactly a year ago, Eldorado Resorts and Caesars Entertainment announced they were joining forces. It was the largest merger between casino companies ever put together. Unfortunately, it appears this merger between Eldorado and Caesars will take a little longer than many analysts predicted.Merger Picture

This isn’t entirely surprising. The world is in the middle of a global pandemic and casino companies have seen their revenue earnings drop incredibly fast. Now is the perfect time to look at why exactly this massive deal is being delayed.

Eldorado Resorts and Caesars Continue to Lose Revenue

At the start of the year, it seemed like the US gambling industry was unstoppable. States around the country were expanding their gambling markets. As a result, casino companies saw their revenue earnings increase sharply.

Eldorado Resorts is one of the biggest casino operators in the country. It owns many casino-resorts and, prior to March, was continuing to purchase more property every month. In June of 2019, news broke that Eldorado Resorts agreed to purchase Caesars Entertainment for an incredible $17.3 billion.

Caesars Entertainment had been struggling for years. Many felt it was only a matter of time before this company was taken over. Many analysts believe this merger worked out extremely well for Caesars.

Unfortunately, both of these companies have lost an incredible amount of money over the past four months. Casinos around the country were forced to shut down back in March. It’s only been a few weeks since most of the country’s gambling venues have reopened.

The pandemic has taken an incredible toll on the economy. As a result, the merger between Eldorado and Caesars is taking much longer to finish than most expected. New reports indicate this deal will not be complete by June, as many initially predicted.

The Merger Between Eldorado and Caesars Won’t Be Complete in June

As we’ve already mentioned, this merger is the largest ever made between two casino companies. In order for this deal to be complete, both companies need to gain approval from various state gambling commissions and the SEC. Obviously, this takes a long time to complete.

It now appears this deal won’t be complete in June. Members of the Indiana State Gambling Commission won’t look at the details of this merger until July 10th. These companies need approval from this state government body in order to push the deal forward.

It’s disappointing news for officials within these companies. For months, they told the media they expected the merger between Eldorado and Caesars to be complete by the end of June. That is no longer the case.

No one knows when exactly this merger will be complete. There are still many steps that need to be taken. Fortunately, both companies’ share prices are starting to increase.

As of today, Eldorado Resorts’ share prices were up by 9%. Caesars saw its prices jump by 2.9%. Many gambling analysts fear that if casinos are forced to shut down once again, these prices will plummet.

The next step to finalize the merger between Eldorado and Caesars is to gain approval in Indiana. We’ll be sure to report on what happens after the commission here meets on July 10th.

More States Begin Allowing Casinos to Reopen

After almost four months of being shut down, casinos around the country are finally starting to open back up. It seems like every single day, more casinos announce they’re starting to accept guests again. Various states have officially given their casinos permission to open back up.

Atlantic City is taking its time lifting restrictions. As many already know, rates of Covid-19 are still high here. State officials worry that reopening casinos will lead to another spike in cases. Governor Phil Murphy believes the casinos here will be opened back up by July 4th.

Las Vegas is slowly getting back to normal. Many of the top casino-resorts in this city have already opened back up. Several more will reopen over the next few weeks.

It’s clear that this industry is getting back on track. The merger between Eldorado and Caesars continues to move forward. Hope is that this massive deal is completed before the end of 2020.

Reopening laws are different in every state. If you want to gamble inside a casino, make sure to check out the regulations. In time, it’s likely that all of the country’s casinos will be able to accept guests.

Make sure to stay tuned for more news on the merger between Eldorado and Caesars!

The Merger Between Eldorado and Caesars is Still Taking Place

The merger between Eldorado and Caesars is the biggest in the history of US casino companies. Obviously, a deal of this magnitude takes months to complete. Fortunately, this company merge is still taking place, despite the intense regulations around the country.Two Hands Shaking

Hope is that this deal is able to take place before the end of the year. Today, we’re going to take a look at the details of this merger. We’ll also talk about some of the strategies these companies are taking to move their plans forward.

Let’s get into it!

Breaking Down the New Eldorado and Caesars Deal

Eldorado Resorts and Caesars Entertainment are two of the biggest casino companies in the world. Over the past decade, revenue at Caesars has slowed and company officials announced they were interested in making a change. This seemed to interest officials within Eldorado Resorts, who have been looking to expand.

In June of last year, news broke that Eldorado and Caesars had agreed to merge. Eldorado was paying an incredible $17 billion, making it the largest casino company sale in history. Under the terms of this agreement, Eldorado Resorts is taking control of all the Caesars properties.

These companies immediately began preparing for this merge. In July, Eldorado Resorts announced it was selling two of its major properties. This decision was made to help finance the larger acquisition of Caesars.

Over time, state gambling commissions began approving this new deal. In January, commissions in Louisiana, Pennsylvania, and Illinois all approved the merger between Eldorado and Caesars. The next month, New Jersey’s commission began taking a closer look at the details of this new deal.

Over the past six weeks, things have begun to change dramatically around the United States. The entire land-based casino industry in the country is shut down. Fortunately, the two companies involved in this massive merger are still taking steps to move the deal forward.

Here’s an Update on the Merger Between Eldorado and Caesars

Many states have now given the green light for this deal to go forward. Until it can be officially completed, though, several more government bodies need to give approval. Some felt this would be extremely difficult given the fact that the world is dealing with a global pandemic.

The current situation isn’t stopping company officials from scrapping their plans, though. This week, heads of Eldorado Resorts announced they were selling two major properties in order to help pay for the cost of the Caesars acquisition. The Eldorado Shreveport Resort in Louisiana and the MontBleu Resort Casino & Spa in Lake Tahoe are being sold to Twin River Worldwide Holdings for a combined $155 million.

Tom Reeg, CEO of Eldorado Resorts, commented on this deal to the media this week.

“The agreement to divest Shreveport and MontBleu to Twin River Worldwide Holdings is consistent with our continued focus on closing the Caesars transaction in the first half of 2020,” he said. 

Caesars announced that it was selling its Bally’s Atlantic City property for $25 million. It’s not a huge surprise to see casinos in Atlantic City being sold. The SEC has voiced its concerns that the merger between Eldorado and Caesars would result in a monopoly-like situation in this city.

The sale of this property should put that idea to rest. It’s clear that these companies are focused on gaining government approval as fast as possible. Many analysts predict more of these small property sales over the next few months.

Las Vegas Mayor Wants the City to Reopen

The land-based gambling industry has been one of the worst-affected by this pandemic. All of the casinos around the United States are completely shut down. Even the top government officials cannot say when these gambling venues will be able to open again.

This has obviously had a devastating impact on the city of Las Vegas. Tourism here has completely stopped. Many casinos here are now losing millions of dollars every single day and some claim they cannot survive much longer under the current situation.

Las Vegas Mayor Carolyn Goodman is now demanding a change. She’s actively calling for businesses in the city to open back up. This goes directly against what most health experts in the country are advising.

It’s an extremely difficult time for this city. Las Vegas relies heavily on its tourism and gambling industries. Without these industries operating, the city is facing an extremely difficult economic situation.

Governor Sisolak is refusing to open the state back up. He wants to ensure that infection rates are dropping before major venues are able to open. Only time will tell how long this process takes.

The merger between Eldorado and Caesars is still carrying on. It now seems possible that this deal is completed before the end of the year.

Caesars-Eldorado Merger Deal Pending New Jersey’s Approval

Ariel View of Atlantic CityThe $17.3 billion merger between Caesars Entertainment Corp. and Eldorado Resorts Inc. is still dependent on approval from 14 state regulatory agencies and the Federal Trade Commission, including New Jersey.

So far, four state regulatory bodies have approved of the merger, including Pennsylvania, Louisiana, Iowa and Illinois.

The merger will grant Eldorado Resorts control of close to 60 casinos in the country. While no explicit deadline for New Jersey regulators to make an approval decision on the merger decision has been set, gaming operators expect a deal finalization within the first half of 2020.

One reason New Jersey could be delaying approval are concerns they’ve cited over the economic concentration the deal would cause in the state, and Atlantic City turning into something of a monopoly.

Dan Heneghan, former public information officer for the Casino Control Commission (now retired) and former casino beat reporter for The Press of Atlantic City, said state gaming regulators are “concerned about economic concentration in the casino industry for many of the same reasons that the (federal) Justice Department is concerned about monopolies in industry in general.”

“If you have a monopoly, or something close to a monopoly, there’s always the concern that the big player can effectively set prices,” Heneghan said.

Back in September, Caesars Entertainment and Eldorado Resorts presented a joint petition to NJ regulators, and stated their intentions of providing an economic analysis that would disprove their merger would cause an undue economic concentration.

New Jersey and Atlantic City Play Major Role in Deal

Since the newly formed company will control nearly half of the resort’s casinos (four out of the nine total casinos), New Jersey and AC will play a major role in the deal. Under its current designations, the company merger will employ 40% of casino industry workers in Atlantic City and represent almost 37% of their total gaming revenue.

Currently, Caesars Entertainment has three outstanding deed restrictions on former casino properties. Those include the former Atlantic Club Casino Hotel, the Claridge Hotel and the Showboat Hotel Atlantic City. These restrictions disallow them to operate as gaming parlors and adds some stress to the current deal.

The Attorney General’s Office, who advised that New Jersey gaming regulators would also be retaining an expert, said this in an email:

“As required by law, the Division is responsible for ensuring the honesty, integrity and financial stability of casino licensees. Part of this process is analyzing the economic impact of casino acquisitions such as the Eldorado / Caesars merger. As part of this process the Division has retained an economic expert to assist with the review of this merger.”

About the Caesars-Eldorado Merger Deal

Eldorado Resorts $17.3 billion acquisition of Caesars Entertainment is slated to become the world’s largest casino operator in terms of gaming assets. To acquire 51% of Caesars, Eldorado will pay $7.2 billion in cash and 77 million shares of stock, as well as taking on Caesars’ existing debt.

Upon regulatory approval, Caesars will merge with Eldorado subsidiary Colt Merger Sub Inc and a new, wholly owned Eldorado subsidiary will exist and operate under the Caesars name.

Three More States Approve Eldorado Resorts’ New Merger

Back in June, officials within Eldorado Resorts announced that the company had agreed to formally merge with Caesars Entertainment. It’s the largest merger between casino companies in history. This week, three more states officially approved Eldorado Resorts’ new merger.Eldorado Resorts Logo

The process to combine these two companies was expected to take a long time. A huge number of states need to give permission for the two operators to join forces. Today, we’re going to look at what still needs to happen for these companies to merge.

Let’s get started!

Why Did Eldorado Resorts Purchase Caesars Entertainment?

Eldorado Resorts is one of the biggest and most successful casino companies in the world right now. It was founded in 1973 in Reno, Nevada. Over the years, it’s expanded across the country. Eldorado Resorts now operates 23 properties across 11 different states.

Since 2013, this company has worked hard to acquire new properties. First, it agreed to merge with MTR Gaming Group. In 2015, the company purchased Circus Circus Reno and a 50% stake in Silver Legacy from MGM Resorts International for $73 million.

In 2017, Eldorado acquired the Isle of Capri Casinos for an astounding $1.7 billion. Over the next few years, this Reno-based casino operator continued to purchase properties. By March of 2019, rumors began to surface that Eldorado was going to purchase Caesars Entertainment.

The timing of this deal made sense. Caesars Entertainment had fallen into debt and was looking for a way to turn things around. By June, Eldorado revealed that it was purchasing the fellow Nevada-based company for an astounding $17 billion. The goal of this deal is to help Eldorado expand its presence across the country.

A deal of this magnitude can’t be completed in a day, though. A huge number of state gambling commissions need to ensure that this will not create a monopoly-like situation. Fortunately, this process of approval is moving along smoothly.

Three States Approve Eldorado Resorts’ New Merger

Ever since June, Eldorado Resorts has been seeking approval from various state gambling commissions. It’s already received approval from many major states yet there’s still a long way to go before this merger is finalized. This week, three additional states announced they have approved Eldorado Resorts’ new merger.

The commissions in Louisiana, Pennsylvania, and Illinois all gave this deal the green light. The Louisiana approval is particularly exciting, as the company will soon operate several new gambling venues in the state. There are still some important states that are holding out, though.

Approval in New Jersey will be extremely important. Officials within Atlantic City have raised concerns over the impact that this deal will have on other casinos in the city. With that being said, it seems unlikely that this state’s gambling commission will choose not to approve the new merger.

Nevada is another important state that has yet to formally approve this deal. Based on the way things are moving, the merger between Eldorado Resorts and Caesars Entertainment will be completed by mid-2020. The Federal Trade Commission still needs to agree to it, as well.

Eldorado Resorts’ new merger will create the single largest casino company in the United States. It will be extremely interesting to watch this deal progress over the next couple of months.

Major Las Vegas Property Sales Continue

There have certainly been some major changes to the US casino industry lately. Of course, not every company is looking to merge with others. Several huge casino operators have instead looked at property sales as a way to generate additional revenue.

This is especially true with MGM Resorts International. The Las Vegas-based company has recently sold several of its biggest and most profitable casino-resorts in Las Vegas. The first came back in October when MGM sold both The Bellagio and Circus Circus. The sale of The Bellagio earned the company more than $4 billion, making it the biggest in Las Vegas history.

A few months later, MGM Resorts announced that it was selling the Mandalay Bay Hotel-Casino.

Not all of these sales aren’t exactly what they appear, though. MGM has chosen to lease back several properties and retains control of its operations. It’s currently paying $245 million per year to keep operating The Bellagio.

Depending on how successful Eldorado Resorts’ new merger with Caesars Entertainment is, more companies may choose to take a similar approach. For now, several casino companies are simply choosing to part with their venues as a way to earn more revenue.

There is a lot happening in the US casino industry. Stay tuned for more updates over the next few months!