American casino owners Eldorado Resorts and Caesars Entertainment gained more green lights before its pending merger, after securing a couple of approvals in the Silver State.
Having been first announced in June 2019, Eldorado reported that, subject to customary conditions, the deal has obtained the go-ahead from the Nevada Gaming Control Board and the Nevada Gaming Commission in accordance with its pending acquisition of Caesars.
Completion now relies on obtaining additional approvals through two U.S. jurisdictions, from the New Jersey Casino Control Commission, the Indiana Gaming Commission, and the Indiana Horse Racing Commission.
It stems from the approval of a proposed consent order by the Federal Trade Commission, which ended Hart-Scott-Rodino’s review of the pending merger.
Acceptance of the consent decree by the FTC met all the antitrust clearances needed for the deal, one aspect of which included the selling of some assets to avoid anti-competitive situations that occurred in certain regions.
In April, the company agreed to buy Eldorado Shreveport Resort and Casino in Louisiana and MontBleu Resort Casino and Spa in Lake Tahoe, Nevada for $155 m from the Eldorado, as well as Bally’s Atlantic City Hotel and Casino for $25 m from Caesars.
The $17.3 billion cash and stock deal to see Eldorado buy Caesars and create the largest casino operator in the US, offering access to around 60 domestic casino resorts and gaming facilities across 16 US states.
Lauding the increased size and regional diversification, it is estimated that approximately $500 m of synergies will be felt in the first year, affording Eldorado and Caesars shareholders respectively 51 percent and 49 percent of the outstanding stock of the merged entity.
The expanded company, expected to use Caesars’ “iconic global brand,” will consist of 11 board members – six of whom will be from Eldorado.