Since the merger between Eldorado and Caesars Entertainment could create a possible monopoly, Caesars now has to move from three of its four properties (Harrah’s Hoosier Park Racing & Casino, Horseshoe Hammond Casino, Caesars Southern Indiana Casino and Indiana Grand Racing & Casino) in the US – Indiana state for sale. The Tropicana Casino in Evansville is operated by Eldorado. Caesars Southern Indiana Casino has already been sold to Eastern Band of Cherokee Indians for $ 250 million.
If there were no sales of the casinos, Eldorado-Ceasars would take around 60 percent of the market.
What exactly is meant by the Eldorado merger?
In the past few months, some US authorities, including the Nevada Gaming Control Board and the Federal Trade Commission (FTC), have given their okay for the approximately $ 17.3 billion corporate merger between Eldorado and Caesars Entertainment. Of that, $ 7.2 billion would be paid in cash and approximately $ 77 million in Eldorado common stock.
This merger would also transfer eight properties to Eldorado. These include Caesars Palace, Planet Hollywood, Linq Resort, Haarahs Las Vegas, Ballys Las Vegas, Cromwell, Paris Las Vegas and Flamingo Las Vegas.
Approval of this merger is being considered on condition that three Indiana casinos will be sold. The merger is not yet final. The New Jersey Casino Control Commission has yet to give its approval. Then, through the takeover, Eldorado could hold 51 percent and Caesars 49 percent of the new company Caesars Entertainment Inc.
Another mega-merger: Caesars buys William Hill
In parallel to all this, Caesars’ takeover of William Hill must also be taken into account, which did not make the discussion of a potential monopoly any easier.
A billion-dollar deal (around $ 3.7 billion) made Caesars the new owner of William Hill last year. It is interesting that Eldorado had already decided on a sports betting deal with William Hill in 2019. Eldorado is now the owner of Caesars and Caesars Entertainment had already owned 20 percent of the bookmaker. Therefore, William Hill’s subsidiary, William Hill U.S. automatically part of this merger.