Eldorado’s Caesars Acquisition Testimony Moves to Third Day

Eldorado’s Caesars Acquisition Testimony Moves to Third Day

Eldorado Resorts is planning to take over Caesars Entertainment for a massive $17.3 billion. The deal has received numerous state and federal approvals but is finding a rough spot in New Jersey, one of the most promising gaming markets in the US.

DGE concerned about the deal

The New Jersey Division of Gaming Enforcement (DGE) is currently concerned about the acquisition deal. Their apprehensions have led the testimony to its third day. Eldorado received a greenlight from the Federal Trade Commission (FTC) in June. It also received approvals from Indiana and Nevada regulators this month. DGE is taking its time for approval and recommendation to the Casino Control Commission (CCC).

Eldorado’s Caesars Acquisition Testimony Moves to Third Day

The testimony will continue on Friday as well. In contrast, Nevada was able to wrap up the hearing in just one day. Both the Indiana Horse Raising Commission (IHRC) and Indiana Gaming Commission (IGC) took only one meeting to approve the transactions. However, the Deputy Attorney General Tracy Richardson noted, “In reflecting on the testimony presented, the division’s concerns, as they relate to the overall uncertainty associated with the transaction, remain.”

What is acceptable to the commission?

In the Wednesday testimony before the CCC, Tom Reeg, CEO of Eldorado Resorts said that the company accepts all recommendations put forward in the DGE report. This includes the release of deed controls on three older Caesars properties in Atlantic City. The assets to be released are- the former Atlantic Club Casino Hotel, the Claridge Hotel, and the Showboat Hotel Atlantic City.

He also said that a $400 million account has been created which will be spending the funds in the next three years on revamping three properties- The Harrah’s on the Boardwalk, Caesars Palace, and ERI’s Tropicana. The company has let go of its proposed $25 million of Bally’s to Twin River Worldwide Holding. Instead, ERI will add another $125 million to the account.

Interestingly, the issues that Richardson raised during the testimonies are beyond any operator’s controls. They will have a hard time predicting the aftereffects of the pandemic on the tourism and gaming industry of Atlantic City. It is also difficult to pinpoint when exactly things could turn back to normal.

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.