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%.

Just Posted

Rebalancing Red Deer’s residential growth begins with Hazlett Lake plans

Northwest neighbourhoods to be developed over next decade or two

Study says rents in most cities are unaffordable for lower-income earners

OTTAWA — A minimum-wage worker could afford to rent in just a… Continue reading

Summer travel deals require flexibility if you want to find a deal

OTTAWA — As social media feeds fill up with pictures of friends… Continue reading

Mountain pine beetle makes its way into Ponoka County

Assar Grinde has a special attachment to the pine trees that line… Continue reading

Opinion: Supervised consumption sites can’t be abandoned in Alberta

By Heather Sweet When Jason Luan, the provincial government’s associate minister of… Continue reading

FIFA claims progress in letting women attend games in Iran

ZURICH — FIFA says Iran’s soccer federation supports letting women attend 2022… Continue reading

Diving gold and perfect marks for Chen Yuxi at age 13

GWANGJU, Korea, Republic Of — Thirteen-year-old Chinese diver Chen Yuxi won the… Continue reading

Louvre in Paris removes Sackler name after opioid protests

PARIS — France’s Louvre Museum in Paris has become the first major… Continue reading

Man shouting ‘You die’ kills nearly 30 at Japan anime studio

TOKYO — A man screaming “You die!” burst into an animation production… Continue reading

Devers hits solo shot, drives in 4; Red Sox beat Jays 5-4

Red Sox 5 Blue Jays 4 BOSTON — Rafael Devers hit a… Continue reading

Argonauts still looking for first win as they face Stampeders on road

CALGARY — Dave Dickenson warned that the Calgary Stampeders can’t take a… Continue reading

Most Read