Louisiana Gives Merger Approval For Eldorado And Caesars
One of the biggest processes in the gambling industry of the US that is currently underway is the merger of Eldorado Resorts and Caesars Entertainment Corp. Eldorado is on its way to acquiring the industry giant, and the process is expected to be completed very soon.
However, to pull that off successfully, the two companies must seek approval from all regulators where they have a presence. In other words, all regulatory bodies in all states where the two companies have casinos will have to approve the merger before it actually happens.
The first ones to approve this process were the regulators from the state of Missouri. Recently, Louisiana joined it, as the Louisiana Gaming Control Board (LGBC) also gave the green light.
Eldorado Resorts acknowledged the fact that the LGBC accepted its request for a merger. The company issued an official statement, claiming that the company officially received approval from the LGCB. The approval is connected to the “pending acquisition of Caesars Entertainment Corporation.”
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At this moment, only Missouri and Louisiana have given official approval for the merger. However, 16 more states need to do the same in order to proceed with such an important move in the gambling industry.
Among these states are Nevada and New Jersey, homes of Las Vegas and Atlantic City. The two of them are currently being monitored by both Caesars and Eldorado, as their approval is the most significant, both being gambling centers.
What Will Happen When All Regulators Approve?
Once all regulators approve the merger, we will get the largest US company in the industry. In fact, it will be so large that it would be impossible to operate so many properties at the same time.
That’s why both Eldorado and Caesars are actively selling some of their properties to other operators. Apart from selling them to make a sustainable business, they are also selling them as a way to gain money and repay Caesars’ debt, which Eldorado agreed to pay off as part of the acquisition.
In fact, the property sale is going quite well. Just a couple of days before Louisiana approved the merger, Eldorado sold its Eldorado Resorts & Casino, which is located in Shreveport, La. The buyer was Maverick Gaming, which purchased it for a total of $230 million.
After that sale took place, the two operators reduced the number of their properties in Louisiana to five. The future merged company will operate Horseshoe Bossier City, Harrah’s New Orleans, Harrah’s Louisiana Downs, the Belle of Baton Rouge, and Isle of Capri.
Since Louisiana now officially approved the merger, the two companies will not sell any more properties in the Pelican State. In other words, it seems that Louisiana is now ready to accept the soon-to-be merged company as one operator.
Although Louisiana is a closed case, there are plenty of other states which are now the primary focus of Eldorado and Caesars. The state that is currently being examined is Nevada, where Caesars is already pushing the sale of several properties there.
Two of them that were sold first were Rio and Harrah’s Reno. Although Rio is still not officially confirmed, the deal with Vici Properties about Harrah’s Reno is officially confirmed.
When will the merger take place? That mainly depends on how fast the approval arrives from the remaining states where the two companies have a presence.
New Jersey is expected to make a decision before the end of January as Caesars already has three properties there, and Eldorado operates Tropicana. It’s likely that the merged company would sell one of its Atlantic City properties as well.