Eldorado Entertainment Completes $1.85B Tropicana Acquisition

Eldorado Entertainment Completes $1.85B Tropicana Acquisition

Earlier this year, it has been announced that the big purchase of Tropicana Entertainment is in the works, undertaken by the Eldorado Resorts chain of gambling venues…

…This would expand Eldorado into 26 land-based properties and into 12 states total. It has been reported that the final acquisition did take place for a total buy price of $1.85 billion.

Big Plans For the Future

Eldorado will make an even bigger imprint on the US regulated sports betting landscape with the purchase of Tropicana, as the combined businesses’ annual revenue is expected to be around $2.7 billion mark or more.

The acquisition means that Eldorado will gain ownership of seven new casinos in six states, including two in Nevada as well as venues in Mississippi and New Jersey. Indiana and Louisiana operating assets have also been acquired, but these states still do not have legalized sports betting…

…Tropicana already uses the William Hill sportsbook in New Jersey, and Eldorado themselves are on the verge of commencing a major land-based and online initiative with the UK brand.

Continuation of Success

Representatives from both sides have given their statements of enthusiasm. CEO of Eldorado, Gary Carano – who will soon step down as a chairman and move into a new role of executive chairman – commented:

“Our acquisition of Tropicana marks a continuation of Eldorado’s successful history of rapid growth through strategic, accretive acquisitions. Through this combination, we have significantly expanded the scale of our gaming operations, further diversified our geographic reach into new markets – some of which have already adopted sports wagering legislation – and minimised market-specific risk.”

Thomas Reeg, who will replace Carano as the company’s new CEO starting January 1st 2019, said Eldorado identified the $40 million of synergies which will be realized over the next year.

Source:

“Eldorado finalises $1.85 billion Tropicana deal”, igamingbusiness.com, October 2, 2018.

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