If there were doubts lingering about whether or not Eldorado Resorts would be able to acquire Caesars Entertainment, essentially creating one of the largest casino companies in the U.S., those doubts are beginning to fade. Eldorado received approval from Missouri regulators in December before Louisiana regulators with the Louisiana Gaming Control Board signed off on the deal earlier this month. Now, three more approvals have been given, making the merger that much more likely to happen sometime during the first half of this year.
Eldorado issued a statement this week, indicating that it had been given the green light by three more regulatory bodies to move forward with the acquisition. It explained that it had “received approval from the Louisiana Racing Commission (LRC), the Pennsylvania State Horse Racing Commission [PSHRC], and the Illinois Gaming Board (IGB) in connection with its pending acquisition of Caesars Entertainment Corporation, subject to customary conditions.”
In Pennsylvania, the deal still has to be approved by the Pennsylvania Gaming Control Board (PGCB) and approval by the LRC was necessary because of Harrah’s Louisiana Downs, a property owned by Caesars. The PSHRC was involved because of Harrah’s Philadelphia, another Caesars venue, that offers sports gambling in both the retail and online spaces. There are no concerns about the PGCB signing off on the deal since Eldorado has no presence in Pennsylvania, and the Harrah’s property is the only one in the state currently operating under the Caesars name. As such, creating a local market that is overrun with post-merger venues is a non-issue.
Securing support from the IGB is a big deal because of the current gaming environment in Illinois. Expansion is happening at a rapid rate, even if Chicago can’t figure out where to put a casino, and, between Eldorado and Caesars, they currently operate three properties in the state.
There are still 15 states that need to give the acquisition their blessing before it can be completed. Two of the most prominent approvals are those of regulators in Nevada and New Jersey, but neither is expected to put up much resistance. Eldorado and Caesars have a substantial presence in both states; however, they have been trimming their portfolios in anticipation of the merger and could reduce their holdings even more before it comes time for the two states to make a decision.
Before Nevada and New Jersey have a go at the merger, there are other jurisdictions that are going to weigh in on the subject. Regulators in Iowa are said to be preparing to discuss the matter next week and determine if the combined four casinos between the two companies present a threat to the local market.
