Eldorado Resorts’ $17.3 billion proposed acquisition of Caesars Entertainment will be discussed by Indiana gaming regulators in July, putting an end to repeated delays forced by the COVID-19 pandemic in dealing with the massive transaction.
The Indiana Gaming Commission (IGC) reportedly obtained a preliminary draft of an analyst’s report on Eldorado Resorts’ proposed takeover of Caesars Entertainment. The IGC is now waiting for that document’s final version, which it expected to be available to the regulator within the next couple of weeks. The regulator will also share the report with the Indiana Horse Racing Commission as Caesars Entertainment owns and operates the Hoosier Park and Indiana Grand racinos as well.
Reno-headquartered Eldorado Resorts has already gained some approvals for its acquisition of Caesars Entertainment from states in which the two entertainment giants operate. Regulators in Indiana, New Jersey and Nevada canceled or postponed meetings several times due to the corona virus pandemic. They moved to electronic confabs but even the digital get-togethers failed to clear the path for the proposed takeover deal. The Nevada Gaming Control Board (NGCB) is all set to meet on Wednesday this week, but the proposed deal is not on its agenda.
Ongoing delays in approving the deal are really discouraging for Eldorado Resorts International, which had aimed to close the acquisition deal by the end of June. The gaming giant is also suffering a loss of $2.3 million daily in “ticking fee” as it could not seal the transaction within nine months of its announcement. The company had announced its acquisition plans in June last year.
It has been roughly a year since the Eldorado Resorts and Caesars Entertainment announced their $17.3 billion transaction agreement that aims to create the largest entertainment company in the United States. Some industry experts are of the view that it would not be easy for the two companies to get required approvals because of potentially high regulatory hurdles as well as concerns that the transaction could hurt competition in the field.
However, some observers are of the view that the acquisition will eventually be approved by the regulators in all states where the two entertainment giants own and operate properties. To alleviate regulators’ concerns about potential concentration risk, Eldorado Resorts International and Caesars Entertainment have agreed to sell some of their properties in Lake Tahoe and Reno, respectively.