Eldorado Resorts could reportedly offload some Caesars entertainment assets in Las Vegas after the two casino operators finalize their $17.3 billion tie-up later this year.
The two companies announced last June that Reno-based Eldorado would take over its larger rival Caesars in a deal that would create the largest US casino operator.
Following the announcement of their marriage, Eldorado’s CEO, Tom Reeg, said last summer that executives at the two companies were actively evaluating options to secure more than $500 million in cost savings from the deal. Mr. Reeg is set to take the reins of the combined entity.
According to a report by Bloomberg from earlier this week, Eldorado might be considering selling some entertainment assets currently owned by Caesars, including the Colosseum at Caesars Palace.
It has also emerged that Las Vegas Sands is circling its rival operator to acquire Caesars Forum, the $300 million, 550,000-square-foot meeting and conference center that is set to open doors this spring not far from Caesars’ Flamingo, Harrah’s, and LINQ properties on the Strip.
None of these reports have been confirmed by Eldorado, Caesars, or Las Vegas Sands.
Since announcing their tie-up, Caesars and Eldorado have sold properties in several states in order to secure regulatory clearance as well as cash to finance any future growth plans. Most prominently, Caesars offloaded its Rio All-Suite Hotel and Casino property located just off the Strip last fall.
Deal Gets OK in Mississippi
Separately, it also became known this week that the mega-merger has received approval from the Mississippi Gaming Commission. The commission became the latest of several regulators from different states to bless the high-profile merger over the past two months.
Eldorado sold its Lady Luck Casino in Vicksburg, Mississippi to Twin River Worldwide Holdings last summer, just shortly after it announced its tie-up with Caesars. That brought the number of Mississippi-based gambling venues operated by the Reno-based company to two. Caesars, too, has two casinos in the Magnolia State – Horseshoe Tunica and Harrah’s Gulf Coast.
Earlier in February, the Iowa Racing and Gaming Commission gave the nod to the multi-billion deal. And in January, the Louisiana Gaming Control Board, the Louisiana Racing Commission, the Pennsylvania State Horse Racing Commission, and the Illinois Gaming Board approved the merger. It should also be noted that Missouri regulators gave the green light to the deal late last year.
The two casino operators will have to gain approvals from competent regulatory bodies in all 17 states in which the combined company will operate once the merger closes. It would also need to be approved by the Federal Trade Commission.