Gambling operators in New Jersey have started looking into Eldorado Resorts Inc.’s aspiration to procure Caesars Entertainment Corp. in a whopping $17.3 billion arrangement that will directly affect 4 casinos across Atlantic City. After receiving the go-ahead from the New Jersey Casino Control Commission, Eldorado will officially assume control of 52 casino premises across 16 states in the US under the Caesars Entertainment brand.
On complete purchase, Eldorado will acquire 3 casino resorts (Harrah’s, Atlantic City and Tropicana) within New York and Philadelphia. Currently, the sale of VICI Properties and Caesars’ Bally’s Atlantic City hospitality and gaming property to Twin River Worldwide at an estimated $25 million remains pending.
Eldorado is set to keep the casino properties open for no less than 5 years with the company focused on bringing improvements within the next 3 years. Eldorado’s CFO Bret Yunker went ahead to pledge $400 million advancements to the 3 resorts followed by a 5% annual revenue reinvestment.
The gaming bodies in Nevada greenlit the buyout a week ago, thereby affecting Flamingo, Paris Las Vegas, Caesars Palace, Linq and Planet Hollywood resort and casino properties in Sin City. Indiana casino regulators, however, approved the deal on a requirement that the merged company divest 3 of 5 of its casinos in the region.
The Indiana Horse Racing Commission approved the plan earlier this week while the FTC (Federal Trade Commission) gave the plan a thumbs up at the end of June, following Eldorado’s agreement to sell its properties in Kansas City, Missouri, Shreveport, Louisiana and South Lake Tahoe, California.
Under terms of the deal, Eldorado will retain 56% of the new conglomerate company with operations and trading to continue under the Caesars Entertainment Inc. brand name. American billionaire and investor Carl Icahn will have 10% of the combined company under his name, thereby being the largest single shareholder after the merger acquisition.