Eldorado Resorts Acquired Permanent License to Operate Tropicana Casino

Eldorado Resorts received official approval for Tropicana casino in Atlantic City. New Jersey Control Commission granted the company the permanent license to the gaming and hospitality company…

…which came as a logical result of the Tropicana acquisition several months ago. The company already provides services to consumers in 12 states.

Continuation of Growth

The mentioned acquisition took place in 2018, which led to Eldorado expanding its presence into 26 land-based establishments, and 12 states in total. The total buy price was $1.85bn, whereas the expected annual revenue should be around $2.7bn or higher. The purchase was marked as…

…a continuation of Eldorado’s unstoppable expansion and diversification of the markets where the corporation operates. Many of the states already accepted sports betting, which will certainly reflect in even bigger profit for the company.

As for the New Jersey, Iowa, Ohio, and Louisiana.

Successful Strategic Alignments

Besides the Tropicana acquisition, one of the largest conglomerates is already in similar prolific partnerships with other prominent brands from the industry. The agreement with the Stars Group made it possible (for the Group) to distribute services in 11 US states. This deal also brings…

…diversity in consumers’ base and consequently noteworthy financial gains. In addition to this, the 25-year partnership with William Hill is also another opportunity for both sides to prosper even more. The contract which came along with “the deal of the decade” can be extended and is also expected to bring prosperity to each of the corporations.

Eldorado and Caesars Step Closer to Deal Finalization

In the meantime, the industry is witnessing another deal, yet of even bigger importance as the Resorts are rumored to be on the brink of announcing a merger with Caesars Entertainment Corporation. A variety of media outlets are reporting that the two brands are that much closer to combing via a cash-and-stock deal. The merger talks between two brands were initially announced back in March. At the time being…

…it seems that the establishments are steps closer to completing the deal. When Eldorado purchased Tropicana they received the property from Carl Icahn. Icahn amassed a 28.5% stake in Caesars which was then absorbed by Eldorado Resorts. Analysts point to the stake factor as a key one that could play a large role in the deal between two giants.

Just to remind, Tilman Fertitta, the owner of Golden Nugget and the Houston Rockets was also among interested candidates for the purchase. The entrepreneur actually came to the company with a proposal regarding a potential merger but was met with disapproval.

Source:

“Eldorado Rsorts Getrs Permanet License for Tropicana Casino“, Narayan Niji, europeangaming.eu, June 13, 2019.