Reno-based Eldorado Resorts needs one more state approval of its $1.85 billion deal to acquire Tropicana Entertainment after Nevada gaming regulators signed off on the deal Thursday.
Eldorado President Thomas Reeg told the Nevada Gaming Commission in Las Vegas that Missouri is the last approval required. The company is meeting with Missouri regulators next week. Eldorado, in partnership with real estate investment trust Gaming and Leisure Properties, is acquiring seven casinos from Tropicana, two of which are in Nevada.
Reeg said the regional gaming company hopes to close purchase on Oct. 1.
Eldorado is acquiring the Tropicana Laughlin and the MontBleu Resort in South Lake Tahoe, which – with its three flagship resorts in Reno – would give the company five properties in Nevada.
Tropicana Entertainment is currently owned by corporate raider Carl Icahn. In addition to Tropicana Laughlin and MontBleu, Eldorado is acquiring Tropicana Atlantic City, Tropicana Evansville in Indiana; Belle of Baton Rouge in Louisiana; Trop Casino Greenville in Mississippi; and Lumière Place in St. Louis.
When completed, Eldorado will operate 26 casinos in 12 states that will include 36,000 slot machines, 12,000 hotel rooms and 20,000 employees. Reeg told the Gaming Commission the company’s long-term debt will increase from $2.3 billion to $3.8 billion once the deal closes.
“This is a significant transaction for us,” Reeg said.
He told the commission the only property Eldorado didn’t buy from Tropicana was a small casino in Aruba, that is more of a timeshare property.
“We like the Caribbean, but not that much,” said Reeg, who added that Tropicana is selling the Aruba property separately.
Eldorado has been on a buying spree since 2017, when it doubled in size through the acquisition of Isle of Capri Casinos. Last month, the company completed the purchase of the Grand Victoria Casino in Elgin, Illinois from a partnership that included MGM Resorts International.
Howard Stutz is the executive editor of CDC Gaming Reports. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter.
