Reno, Nevada-based casino operator Eldorado Resorts has received regulatory clearance for its merger with larger rival Caesars Entertainment Corp. in one more state as the two companies look to complete their combination by mid-2020.
In a statement issued this past Tuesday, Eldorado announced that during its latest meeting, the Iowa Racing and Gaming Commission approved the operator’s proposed tie-up with Caesars.
Following the latest regulatory approval, Eldorado said that it expects to consummate the transaction by the end of the first half of 2020. The deal remains subject to regulatory approvals in the states where Eldorado and Caesars operate casino and racetrack properties as well as to approval from the Federal Trade Commission and other closing conditions.
The Iowa Racing and Gaming Commission was the latest regulator to give the nod to the Eldorado-Caesars combination. Last month, Eldorado secured regulatory green light from the Louisiana Gaming Control Board, the Louisiana Racing Commission, the Pennsylvania State Horse Racing Commission, and the Illinois Gaming Board.
The two casino operators need approvals from regulators in about a dozen more states around the US.
In Iowa, Eldorado operates Isle Casino Hotel Bettendorf and Isle Casino Hotel Waterloo, while Caesars runs Harrah’s Council Bluffs Hotel and Casino and Horseshoe Council Bluffs. When Eldorado and Caesars combine, the enlarged group will manage four of Iowa’s 19 licensed casinos.
Sports Betting Remains a Key Issue
While it seems that regulators are on board with the proposed tie-up, Caesars and Eldorado executives still have some important issues to solve before the combination can take place.
The post-marriage operation of the enlarged group’s sportsbooks around the US remains one such key issue. Eldorado CEO Tom Reeg told gaming news outlet Casino.org that they are working on the sports betting issue and that they’ve “got to figure out that prior to closing.”
Under a deal Eldorado signed with William Hill in the fall of 2018, the British bookmaker operates sportsbooks at properties owned by the Nevada operator in several states where athletic gambling has become legal in the past two years. Caesars operates sportsbooks in nearly 30 of its properties around the nation.
Mr. Reeg, who will step in as CEO of the combined entity, went on to say that “there’s a lot of discussion to be had… there’s a lot of value that’s within Caesars, that’s within us, that’s within William Hill” and that they are examining whether they could “do something that’s more ambitious than just William Hill running Caesars’ books.”
Some executives at the two casino companies hope that the transaction will be finalized in the early days of the second quarter of the year, but that really depends on how soon they will secure all required regulatory approvals, clear all other closing conditions, and figure out the sportsbooks puzzle.
Under the terms of the tie-up, first announced last summer, Eldorado will own 51% of the combined entity that will trade under the Caesars brand. The combination of the two companies will create a $17.3 million gambling behemoth with more than 60 casinos around the country.
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