Pennsylvania Approves Eldorado/Caesars Merger; Transaction Likely to be Completed

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February 22nd, 2020
Back Pennsylvania Approves Eldorado/Caesars Merger; Transaction Likely to be Completed

Eldorado/Caesars merger has just been approved by another US state. This time Pennsylvania gave a nod to the deal, bringing the transaction one step closer to conclusion. The agreement estimated at $17.3-billion has fulfilled all conditions, which was sufficient for Pennsylvania Gaming Control Board (PGCB) approval. The Board has provided the same explanation in other states including Louisiana, Iowa and Illinois.

About Endorsement

According to the statement provided by Eldorado, the approval has been obtained following the implementation of all conditions. The merger becomes more than realistic giving the number of state regulators who have approved the deal by now. If everything continues in the same direction, both operators can receive the green light in the first half of 2020. Both Eldorado and Caesars have already projected the same time for the completion of the project which will result in the largest gambling company in the United States.

At the moment, Pennsylvania is famous for Harrah’s Philadelphia owned by the Caesars company. The state is also known for the immense popularity of sports betting action, making it fruitful ground for operators seeking an expansion to prosperous markets.

According to the PGCB report, sports wagers continues to rise in popularity and the number of placed bets is increasing all the time. During this year’s Super Bowl event, the state recorded $30.7 million in bets. Considering that PA allows both online and retail sportsbook operation, it is a very favorable ground for additional action.

Upcoming Approvals

Eldorado/Caesars Merger waits for additional approvals of Mississippi,Indiana, Nevada and other US states. Mississippi and Indiana will not be a problem regarding future expansion while Nevada is a more than secure option. Both operators are famous for their considerable presence in the state, although they should additionally work on narrowing the portfolio to avoid potential problems.

It is still to be seen what will happen in New Jersey. Presently, both Eldorado and Caesars hold four casino out of nine operating venues. It could become a potential obstacle for further expansion. The most recent results, unveiled by the Division of Gaming Enforcement, show a 30.9% increase in January revenues compared to the same time last year. Following the better performance of gambling venues, New Jersey recorded a surge from 229.6 million to $300.7 million the year before. These figures will motivate the regulator to approve the upcoming transaction despite post-merger control of the operator...

Source:

„Pennsylvania gaming regulators say yes to Eldorado/Caesars merger“, Erik Gibbs, calvinayre.com, February 13, 2020.

“the approval has been obtained following the implementation of all conditions”

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