After getting the green light from shareholders in November, Reno-based hotel and casino entertainment company, Eldorado Resorts Inc (NASDAQ – ERI) recently announced that the Iowa Racing and Gaming Commission has approved its pending acquisition of Caesars Entertainment Corporation (CZR:NASDAQ).
In January, Eldorado revealed that it had received approval from the Louisiana Racing Commission, the Pennsylvania State Horse Racing Commission and the Illinois Gaming Board.
Shareholders of approximately 87 percent of Eldorado stock, in November, voted in favor of the $17.3 billion merger, while holders of 76 percent of Caesars stock gave their approval of the deal, which was first floated in June 2019.
To date, five regulatory bodies in four states have given the ok to the Nevada company. The merger that will create the largest casino firm in the United States is expected to be consummated before the end of June, according to the official press release.
The two companies will still need to secure approval from regulatory bodies in each of the 17 states where the merged firm will operate, to include Nevada. Approval will also be needed from the Federal Trade Commission.
Eldorado Resorts is responsible for twenty-three properties in eleven states, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Mississippi, Missouri, Nevada, New Jersey, and Ohio, and will reportedly assume all of Caesars’s outstanding debt following the completion of the planned merger.
With a portfolio of 16 brands such as The Cromwell, Planet Hollywood and Harrah’s, Caesars Entertainment Corporation is one of the world’s most diversified casino-entertainment providers but has witnessed a steady decline in the value of its shares due in large part to weakening consumer demand and mounting liabilities.
At closing on Friday Eldorado shares were down 2.06 percent to $62.30. Caesars’ shares were down 0.78 percent to $13.92.