Please ensure Javascript is enabled for purposes of website accessibility

Eldorado’s Acquisition of Caesars Entertainment Postponed at Least Until July

By Rhian Hunt - Jun 18, 2020 at 1:09PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Indiana regulators won’t be able to rule on the merger until then.

With the one-year anniversary of the deal's announcement around the corner, Eldorado Resorts (ERI) finds itself once again baffled as it attempts to finalize its acquisition of Caesars Entertainment (CZR). The two companies hoped to complete their combination into a single, titanic casino enterprise before the end of June. However, regulatory delays in Indiana have pushed back the date yet again, probably to sometime later in July.

With earlier meetings canceled due to the COVID-19 pandemic, the Indiana Gaming Commission just said they have chosen July 10 as the date when the "proposed Eldorado Resorts and Caesars Entertainment transaction will be considered." The commission added, "a full agenda will be released once it becomes available." The deal currently can't close until the Indiana Gaming Commission, the gaming commissions of New Jersey and Nevada, and the Federal Trade Commission (FTC) all provide their approval.

Bored businessman waiting.

Image source: Getty Images.

The delay could potentially affect a sale of real estate and a $400 million mortgage secured by the Caesars Forum Convention Center, which Eldorado recently arranged to raise around half a billion dollars in cash. 

Eldorado and Caesars shook hands on the merger on June 25, 2019, with Eldorado agreeing to pay $17.5 billion in cash and stock for the other company. The merging of the two enterprises will create a business able to compete with the biggest casino operators in the U.S., such as Wynn Resorts. However, the deal has been plagued with postponements, including cancellation of planned first-quarter finalizing when the coronavirus pandemic swept the country, putting the deal on hold for months.

Rhian Hunt has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Eldorado Resorts, Inc. Stock Quote
Eldorado Resorts, Inc.
ERI
Caesars Entertainment Corporation Stock Quote
Caesars Entertainment Corporation
CZR
Wynn Resorts, Limited Stock Quote
Wynn Resorts, Limited
WYNN
$68.74 (1.73%) $1.17

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
400%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/14/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.