Nevada gaming regulators gave Eldorado Resorts preliminary approval Wednesday to acquire seven casinos from Tropicana Entertainment for $1.85 billion in partnership with real estate investment trust Gaming and Leisure Properties.
Eldorado President Thomas Reeg told the Gaming Control Board in Las Vegas the transaction, which was announced in April, could close Oct. 1.
Eldorado is seeking approval from other state regulatory bodies this month. Reeg said deal has already cleared a federal anti-trust review. The Nevada Gaming Commission will make a final recommendation on the control board’s ruling on Sept. 20.
As part of the deal, Eldorado is acquiring the Tropicana Laughlin and the MontBleu Resort in South Lake Tahoe, which – with its three flagship resorts in Reno – would give the company five properties in Nevada.
Eldorado President Thomas Reeg speaks to the Nevada Gaming Control Board
Reeg said after the hearing the regional casino operator – which will have 26 properties in 12 states once the transaction closes – would still like to own a Las Vegas resort.
“It comes down to making sure it pencils out,” Reeg said, “Las Vegas is much different than any other market.”
Tropicana Entertainment is currently owned by corporate raider Carl Icahn. In addition to Tropicana Laughlin and MontBleu, Eldorado is acquiring Tropicana Atlantic City, Tropicana Evansville in Indiana; Belle of Baton Rouge in Louisiana; Trop Casino Greenville in Mississippi; and Lumière Place in St. Louis.
Eldorado has been in an acquisition mode since 2017, which it doubled in size through the acquisition of Isle of Capri Casinos. Last month, the company completed the purchase of the Grand Victoria Casino in Elgin, Illinois from a partnership that included MGM Resorts International.
Earlier Wednesday, Eldorado announced a deal with William Hill US, which will oversee the sports betting operations for the company’s casinos in exchange for 20 percent ownership stake in the bookmaker.
William Hill US and Eldorado will co-develop sports books and add the infrastructure needed for mobile and online wagering. The companies expect to focus initially on New Jersey, Iowa, Mississippi and West Virginia. In a statement, Eldorado said it expects its casinos in West Virginia and Mississippi to be ready for sports betting this NFL season.
William Hill has operated the sportsbooks at Eldorado’s Reno resorts since 2012.
During Eldorado’s quarterly conference call in August, Reeg was bullish on sports betting, especially in Atlantic City. He said the activity has been “under-estimated” by the regional markets.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter.
