Indiana Gaming Commission Approves Eldorado Acquirement of Ceasars
The Indiana Gaming Commission (IGC) has approved Eldorado resorts Inc’s acquirement of Caesars Entertainment Corp’s Indiana properties. Also, the IGC approved the acquisition on Friday. However, commissioners have a few requirements for the new Caesars company.
The IGC wants the company to sell three of its properties in Indiana by the end of the year. Secondly, the IGC wants the company to maintain its employment levels at its remaining properties for three years. Once the ]$17.3 billion deal is finalized, the company will control Horseshoe Hammond, Caesars Southern Indiana, and Tropica Evansville
Eldorado shareholders will own a 56 percent stake in the new company. Also, the IRC will meet on Monday to discuss the 56 percent stake.
Eldorado Likely to Sell Southern Indiana Casinos
Eldorado has proposed to sell to properties. Also, the company claimed that this would put it at about40 percent market share.
According to Eldorado CEO Tom Reed, the sale of Indiana Grand and Hoosier Park depends on the IRC approving it. Reed will also be the CEO of the new Caesars. Also, Reed said that Tropicana Evansville and Caesars Southern Indiana casinos are likely to be sold.
“That’s a very difficult asset to think about selling, and the current environment between the pandemic and the competitive situation, expanding in Illinois”. “I’m not optimistic about how that would go,” Reed said
Reed if they needed to sell the third property, Hammond would most likely be the third property to be sold.
Eldorado officials said they intended to sell one property within six months, another within 12 months, and the third one in 18 months.
ICG Commissioner Marc Fine dreaded that the delay would make the selected properties neglected.
“I’m fearful that the properties that are selected for divestiture will be neglected, and the sooner we are able to move in the direction we need to go for the benefit of the state, the sooner it needs to happen,” he said.
Eldorado plans to invest up to $60 million in both racinos. Also, part of that amount would go towards the expansion of table games at the Shelbyville and Anderson facilities.
“They’ve effectively opened all of the tables that they can fit into the properties.”
“We have drawings and would be ready to begin expansions, ” Reed said.
One reason why the new Caesars may be motivated to keep both tracks and sell the rest of the properties is that the two tracks are the only casinos in the Indianapolis market. Also, Indianapolis is home to about 2.5 million people. Additionally, there is no other casino within an hour of Indianapolis.
- Circus Circus Reno — Reno, Nevada.
- Eldorado Reno — Reno, Nevada.
- Eldorado Shreveport — Shreveport, Louisiana.
- Grand Victoria Casino Elgin — Elgin, Illinois.
- Isle Casino Hotel Bettendorf — Bettendorf, Iowa.
- Eldorado Gaming Scioto Downs — Columbus, Ohio.