Big rollers: Eldorado buys Caesars in deal valued at $17B

LAS VEGAS — Eldorado Resorts will buy Caesars in a cash-and-stock deal valued at $17.3 billion, creating a casino giant.

The acquisition Monday puts about 60 casinos and resorts in 16 states under a single name, one of the biggest gambling and entertainment ventures in the United States.

“Together, we will have an extremely powerful suite of iconic gaming and entertainment brands, as well as valuable strategic alliances with industry leaders in sports betting and online gaming,” Eldorado CEO Tom Reeg said in a prepared statement.

The company, which will be called Caesars, will be led by Reeg, along with Eldorado Chairman Gary Carano. It will be based in Reno Nevada, where Eldorado is based, with a “significant corporate presence” in Las Vegas, where Caesars is based.

Eldorado will pay $8.40 per share in cash and 0.0899 shares of Eldorado stock for each Caesars share, or $12.75 per share. The transaction values Caesars at about $8.6 billion, and Eldorado will pick up about $8.8 billion of the casino’s debt.

Shareholders of Eldorado Resorts Inc. will hold about 51% of the company’s outstanding stock, with Caesars Entertainment Corp. shareholders holding the remaining and 49%.

Earlier this year, billionaire Carl Icahn revealed an enormous stake in Caesars and pushed for fundamental changes at the company. Caesars, which operates more than 35 casinos in the U.S., emerged from bankruptcy protection in late 2017, but it’s been struggling since.

Casinos have seen a tremendous uptick in revenue, however, with the broad legalization of sports betting.

Eldorado said Monday that it’s also reached a real estate agreement with VICI Properties Inc. in which VICI will acquire the real estate associated with Harrah’s Resort Atlantic City, Harrah’s Laughlin Hotel & Casino, and Harrah’s New Orleans Hotel & Casino for approximately $1.8 billion. Other terms of the deal include VICI being given right of first refusals for whole asset sale or sale-leaseback transactions on two Las Vegas Strip properties and the Horseshoe Casino Baltimore.

The Eldorado-Caesars deal is targeted to close in the first half of next year if approved by gaming regulators and shareholders.

Caesars’ stock jumped 12.2% before the market open, while shares of Eldorado fell 6.6%.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

City council opts to stick with RCMP

Motion to begin transitioning to a municipal police force defeated 6-3

Parks Canada says no to gondola proposed from Banff townsite to Mount Norquay

BANFF, Alta. — Parks Canada has rejected a proposed gondola to take… Continue reading

What was said about RCMP versus muncipal policing in Red Deer council chambers:

Some notable quotes from Tuesday’s policing discussions by Red Deer city council:… Continue reading

Prison watchdog decries ‘Indigenization’ of Canada’s correctional system

OTTAWA — The proportion of Indigenous people in federal custody has hit… Continue reading

McConnell backs off, abruptly eases impeachment trial limits

WASHINGTON — The U.S. Senate plunged into President Donald Trump’s impeachment trial… Continue reading

WATCH: Canadian kid shovelling snow video goes viral

Rory might just be Canada’s most popular toddler right now, thanks to… Continue reading

Your community calendar

Jan. 22 Downtown House Senior Center (5414 43 St.) in Red Deer… Continue reading

Parks Canada says no to gondola proposed from Banff townsite to Mount Norquay

BANFF, Alta. — Parks Canada has rejected a proposed gondola to take… Continue reading

Prison watchdog decries ‘Indigenization’ of Canada’s correctional system

OTTAWA — The proportion of Indigenous people in federal custody has hit… Continue reading

McConnell backs off, abruptly eases impeachment trial limits

WASHINGTON — The U.S. Senate plunged into President Donald Trump’s impeachment trial… Continue reading

Lineups form outside grocery stores in St. John’s, N.L., on 5th day of emergency

ST. JOHN’S, N.L. — Emptying kitchen cupboards were restocked in St. John’s,… Continue reading

Changes to Hall of Fame and a quick entry for Tiger Woods

SAN DIEGO — Tiger Woods won’t have to wait until he’s 50… Continue reading

Manitoba’s record-breaking snow maze captures winter’s whimsical charm

ST. ADOLPHE, Man. — It doesn’t take a master sleuth to figure… Continue reading

Most Read