The merger deal between two entertainment behemoths Caesars Entertainment and Eldorado Resorts is still happening as planned despite the coronavirus pandemic which has affected all industries including the gaming and hospitality industries, and every other. As expected, the coronavirus pandemic has caused delays in the $17.3 billion-worth merger deal between the two companies which as revealed recently should be completed sometime in June this year.
Several sources said that despite the coronavirus fallout, the merger deal is moving forward as planned despite many reports released recently which stated that the coronavirus pandemic may derail the merger which will create one of the biggest casino and hospitality companies not only in the United States but globally. As suggested, the merger deal will move forward as soon as the operators receive approvals from the USA-based gaming regulators where Eldorado Resorts and Caesars Entertainment operate.
Waiting for Approvals by State Regulators
Eldorado Resorts and Caesars Entertainment can proceed with the necessary transactions and other steps required for the merger to be completed when gaming regulators in the United State grant them necessary approvals. Nonetheless, the coronavirus outbreak stormed through the United States-based hospitality and casino sectors in an unimaginable way forcing both tribal and commercial casino operators to close their hotel and casino venues.
The coronavirus pandemic in the United States which stormed through all industries in the states also caused the delay in the $17.3 billion-worth merger deal. Following the massive coronavirus outbreak in the states, many news outlets shared reports that this crisis could potentially change the way gaming regulators in the states view the massive financial debt which most certainly goes hand in hand with the Eldorado-Caesars merger. The same news outlets concluded that the coronavirus crisis could derail the merger altogether.
However, officials of both companies agree that the merger deal is still on as planned despite the coronavirus crisis and obstacles concerning the coronavirus pandemic. At the moment, Eldorado Resorts and Caesars Entertainment await necessary approvals from New Jersey, Nevada and Indiana gaming regulators. Moreover, the companies also need necessary licenses granted by the Federal Trade Commission alongside license issued by state regulators.
Nevada Gaming Control Board Investigating the Deal
It was also reported that the main gaming regulatory body for the state of Nevada, Nevada Gaming Control Board is still investigating the merger deal between the two companies. According to Tony Alamo who is a board member of the state’s regulatory body, the investigation is conducted on every other deal of this kind. He also added that everything goes as expected while the investigation into the merger is a completely normal part of the process that the Nevada Gaming Control Board always conducts.
Eldorado Resorts and Caesars Entertainment were hopeful to close the merger deal in April, but due to the coronavirus pandemic and related issues, this is more likely to occur within several months in June. The state of Nevada’s main gaming regulatory body has its next meeting this month while the Ney Jersey Casino Control Commission holds its following meeting on the 13th of May. All in all, both Eldorado Resorts and Caesars Entertainment have more than enough liquidity to last for over twelve months even though their facilities across the United States are not operational and will remain closed probably for several more weeks.