Following the approval of Indiana and Nevada, the Eldorado-Caesars merger is entering its final chapter. Once the merger is completed, a new regional giant will be created which will operate in 16 states.
NJ Regulator Expected to Make a Decision on the Megadeal
The megadeal merger between Eldorado and Caesars is entering its final stage. The New Jersey gambling regulator has been reviewing the details of the deal since July 15, and the deal amounts to $17.3 billion. Response from the regulator is expected in the next few days. The megadeal involves four out of nine casinos in Atlantic City, NJ alone. Once finalized, under the name of Caesars, a new regional giant will be created. The giant will be operating some 52 properties in 16 states.
A deal for the selling of Bally’s Atlantic City hotel casino for some $25 million by Caesars Entertainment and VICI properties to Twin River Worldwide Holdings is still being processed. This means that once the merger is completed, there will be three resorts operated by the giant which are in close proximity to Philadelphia and New York. Those properties are: Tropicana Atlantic City, Harrah’s and Caesars.
Atlantic City: Gigantic Population Center
In an online hearing, Thomas Reeg, Eldorado chief executive said: “Atlantic City is going to be a significant piece of this combined company.” He continued by saying: “Atlantic City, where it sits, is in the middle of a gigantic population center.” Furthermore, Reeg outlined that it is the company’s job to make the properties attractive. By doing so, clients will be more inclined to get on a plane or in their car and visit them.
Eldorado Chief Financial officer, Bret Yunker, vowed that some $400 million will be invested in terms of improvements of the three properties. Those improvements are planned to be completed in the next three years. Additional investments will be allocated from raised revenue, which will be 5% per annum. The company also said that the properties are going to be kept open in the next five years at least.
NJ Marks the Final Chapter of the Eldorado-Caesars Merger
Last week, the Nevada Gaming Control Board approved the Eldorado-Caesars merger. Under the merger, eight properties on the Strip in Las Vegas are going to be acquired by Eldorado. Those are Caesars Palace, Linq Resort, Planet Hollywood, Harrah’s Las Vegas, Flamingo Las Vegas, Bally’s Las Vegas, Paris Las Vegas, and Cromwell. Last week, Yunker said the properties are: “incredibly valuable.”
Second to last came the approval by the Indiana Gaming Commission and the Indiana Horse Racing Commission which gave the go ahead on Friday and Monday respectively. In Indiana, a condition was set that a few of the properties may be sold, but the operator said that this can be discussed only once the merger is completed. With that in mind, the merger is awaiting the approval of the New Jersey regulator which is the final approval needed for the megadeal.