Caesars and Eldorado Forced to Sell Casinos
Caesars and Eldorado Resorts are planning to merge in what will create a company estimated to be worth $17.3 billion. However, gaming regulators in the state of Indiana want the two businesses to sell three of its properties before the merger between the two is approved.
The Indiana Gaming Commission (IGC) raised concerns about economic concentration by Caesars and Eldorado in the state’s casino industry. It is concerned that together the two companies run a monopoly on the casino market. Caesars and Eldorado together own 5 of the 13 state casinos which collectively contribute to over 60% of the state’s casino tax revenue.
By forcing them to sell more than half of the properties they own, The Indiana Gaming Commission hopes to create a more equal playing field between the two businesses and their competitors.
Caesars and Eldorado Casinos Up for Grabs
Caesars Entertainment group runs four of the five properties while Eldorado Resorts only controls one of the properties. The casinos in question include the Tropicana Casino operated by Eldorado in Evansville. Caesars controls Horseshoe Hammond, Harrah’s Hoosier Park Racing & Casino, Indiana Grand Racing & Casino, and Caesars Southern Indiana.
It’s not clear which three of the five mentioned casinos will be up for sale but the Tropicana Casino, Horseshoe Hammond, and Caesars Southern Indiana are the likely guesses. While there’s no certainty about which casinos will be up for grabs yet, the Indiana Gaming Commission did state that when the merge is complete, the new company is not allowed to cut down on staff at the two casinos that remain. Caesars and Eldorado must keep those currently employed there for the next three years at least.
Final Steps to Complete Merger
Regulators in the state of Nevada agreed to the merger as is and made no demands. The United States Federal Trade Commission was in agreement with the deal too. The FTC made similar demands to the IGC though and asked that the two companies sell three other casinos before they approve the deal. Approval from the IGC is one of the last hurdles to cross before the merger is complete officially.
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