Regional casino operator Eldorado Resorts, which is in the process of acquiring seven casinos from Tropicana Entertainment, shook up its corporate structure Wednesday, naming Thomas Reeg as CEO.
Reeg, who has been Reno-based Eldorado’s president and chief financial officer, will replace Gary Carano – Eldorado’s current chairman – who’s title will change to executive chairman. Carano – son of the late Eldorado founder Don Carano – has held several senior management positions with the company since 1980.
“By putting this management change in place now, we will ensure a seamless transition and better position Eldorado to continue to execute on our growth strategies and further build value for our shareholders,” Carano said in a statement.
The change comes as Eldorado nears completion of its $1.85 billion acquisition of Carl Icahn’s Tropicana Entertainment in partnership with real estate investment trust Gaming and Leisure Properties.
Reeg told Nevada gaming regulators last week the deal is expected to close on Oct. 1.
When completed, Eldorado will operate 26 casinos in 12 states that will include 36,000 slot machines, 12,000 hotel rooms and 20,000 employees. Reeg told the Nevada Gaming Commission the company’s long-term debt will increase from $2.3 billion to $3.8 billion once the deal closes.
“Having worked with Tom for more than 10 years, I have the greatest level of confidence in his leadership abilities, his industry innovation, drive to succeed and his capacity for extending Eldorado’s record of phenomenal growth,” Carano said. He added that Reeg shares “the Carano family commitment to providing our guests with unmatched services.”
Reeg has been Eldorado president since 2014 and he was also appointed to the company’s board that same year. He has also served as CFO since 2016. Reeg has been with company since 2007 and was involved with negotiating, structuring and financing the company’s recent growth efforts.
Eldorado has been on a buying spree since 2017, when 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.
Eldorado also signed strategic agreements with The Cordish Companies to develop non-gaming entertainment at the company’s casino in Florida, and a deal with William Hill US to serve as Eldorado’s exclusive sports betting operator.
“I am honored to take over as chief executive officer given Eldorado’s prospects for continued growth and our solid financial position,” Reeg said. “Gary led a significant expansion of our property portfolio while maintaining true to the Carano family’s legacy.”
Macquarie Securities gaming analyst Chad Beynon said the management change was a positive move. Reeg and Carano are viewed as “critical pieces” of the Eldorado puzzle.
“We remain confident in Eldorado’s ability to execute on operational and service improvements, merger and acquisitions synergies and overall growth under the current team,” Beynon told investors.
The company also named Anthony Carano and president and chief operating officer. He had previously been Eldorado’s general counsel. The company will begin a search for a new CFO.
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.
In addition, the company 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.
Shares of Eldorado closed at $47.90 on the Nasdaq National Market Wednesday, up 5 cents or 0.10 percent.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter.
