Eldorado Resorts and Caesars Entertainment Corporation have announced that they have entered into a definitive merger agreement to create the largest US gaming company. The proposed transaction will combine two gaming companies with complementary national operating platforms, strong brands, strategic industry alliances, and a collective commitment to enhancing guest service and shareholder value. The combined company will provide its guests with access to approximately 60 domestic casino–resorts and gaming facilities across 16 states.
Tom Reeg, Chief Executive Officer of Eldorado, comments, “Eldorado’s combination with Caesars will create the largest owner and operator of US gaming assets and is a strategically, financially, and operationally compelling opportunity that brings immediate and long-term value to stakeholders of both companies. Together, we will have an extremely powerful suite of iconic gaming and entertainment brands, as well as valuable strategic alliances with industry leaders in sports betting and online gaming. The combined entity will serve customers in essentially every major US gaming market and will marry best-of-breed practices from both entities to ensure high levels of customer satisfaction and significant shareholder returns.”
He continued, “As with our past transactions, we have a detailed plan for significant synergy realization. Relative to our prior acquisitions, the combination with Caesars presents attractive incremental revenue synergy opportunities as we plan to strengthen Caesars Rewards, the industry’s leading player loyalty and CMS database, and combine it with Eldorado’s to market to over 65 million rewards customers nationally. Additionally, the transaction bears benefits beyond the strategic merits of the combination with Caesars in isolation. Our agreement with VICI favorably positions both platforms by enhancing the value of our combined company’s assets and further solidifies the growth profile of VICI.”
He added, “Eldorado’s history of completing successful, value-enhancing transactions has focused on prioritizing operating discipline with the goal of delivering best-in-class gaming and entertainment experiences and amenities to customers, unlocking the long-term value of acquired companies and assets through effective financial management, and completing return-focused investments in our properties that elevate the guest experience as well as our competitive position and overall returns. We intend to allocate the significant free cash flow from the combined company to reduce leverage while investing to improve the customer experience across the platform. We could not be more excited about the future as we bring together two industry leaders that will generate significant opportunities for our employees, customers, partners, and shareholders.”
Strategic Rationale of Caesars Combination

  • Eldorado’s decentralized operating model combines with its history of completing value-building transactions through financial management to drive improved margins and create value for both shareholders and guests.
  • Merger combines iconic global brands and Caesars Rewards loyalty program with guest-service focus to drive value across the expanded regional network, including access to properties in Las Vegas and other gaming markets around the country.
  • Caesars Las Vegas asset portfolio has recently developed $1.2 billion in enhancements and room remodels that position the portfolio for improved operating performance in the near-term.
  • Eldorado management has a track-record of integrating acquired companies and achieving stated synergy targets and expects to achieve approximately $500 million of synergies in the first year following closing. Additionally, Eldorado sees long-term cost and revenue synergy upside opportunities.

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