Eldorado Resorts announced last June that they were looking to merge with Caesars Entertainment in a deal that was worth over $17 billion. Getting shareholders’ approval was step one, but both companies were given the go-ahead to proceed with the merger.
The next step was to go through all of the regulatory procedures with state lawmakers, and that step is taking much longer than expected. The coronavirus pandemic has kept state officials from being able to meet in person, and it has delayed the approval process.
The two main states that play a significant role in this process are Nevada and New Jersey. Both companies own properties in these two states, and they are two of the most important states in the gambling industry.
The New Jersey Division of Gaming Enforcement and the Nevada Gaming Control Board have both suspended meetings for the foreseeable future, and the discussion of this merger continues to be left out.
The Nevada Gaming Control Board held their first meeting to discuss the merger on March 19, but they were set to revisit the issue on April 8. With the state of Nevada being shut down for 30 days, that meeting will not take place.
The New Jersey Division of Gaming Enforcement has yet to discuss the issue, with the first meeting set for mid-April. It appears that the meeting will have to be delayed as the state tries to figure out how to navigate through this pandemic.
If both states did approve of the merger, then the Casino Control Commission would have their chance to approve the deal. The Casino Control Commission isn’t scheduled to meet again until May 13, and both companies are hoping that the states have approved the deal by then.
Eldorado Resorts is currently paying Caesars Entertainment $2.3 million per day as the deal was not finalized within nine months.
Shareholders Approved Merger
The two companies had agreed for the merger to take place, but the ultimate decision was left up to the shareholders of the respective companies. Both companies held private meetings last November, some five months after the merger was announced.
Shareholders in Eldorado stock were much more in favor of the announced merger. Almost 87 percent of all stockholders in the Eldorado Resorts company voted in favor of the merger. Just over 75 percent of the stockholders in the Caesars Entertainment company gave their approval to the merger.
Those two separate votes gave the two companies the power to go ahead with the merger, which was supposed to be completed in June.
What is Eldorado Resorts?
Eldorado Resorts Inc was founded on May 24, 1973, and it is headquartered in Reno, Nev. The company currently owns and operates 23 properties in 11 different states across the United States.
The Eldorado Hotel in Reno was the first building built by the company, but expansion started to take place in 1995. Eldorado Resorts built the Silver Legacy Resort Casino in 1995, and most of their other buildings were bought instead of built.
Anthony Carano is listed as the President of Eldorado Resorts and is also the Chief Operating Officer. Gary Carano is listed as the chairman of the company, and Thomas Reeg is currently serving as the Chief Executive Officer.
At one time, the company had 28 properties throughout the United States, but they have started to sell some properties to raise money for this merger. The Eldorado Resort and Casino in Shreveport, La., was sold to Maverick Gaming for $230 million. Eldorado Resorts is expected to keep the rest of their remaining properties.