June 11, 2019, saw the New Jersey Casino Control Commission (NJCCC) approve a license which saw Eldorado Resorts Inc. take over Tropicana Casino as the new parent company. The deal comes in the wake of Eldorado Resorts deal talks with Caesar Entertainment which would see the company take over four (4) of the nine casinos in Atlantic City.
Eldorado has been working on the acquisition of Tropicana Casino for eight months which included the casino giving out its Atlantic City venue. The deal has cost about $1.85 Billion giving the company the rights to operate the casino. The purchase gives Eldorado the right to operate on seven casinos located in six states that Tropicana own. The property has been divided with two located in Nevada, one in New Jersey, One in Mississippi, Louisiana, Missouri and Indiana.
Excited about the deal, CEO Eldorado, Gary Carano said, ‘With our proposed acquisition of Tropicana Entertainment, Eldorado Resorts is yet again pursuing a large transaction that is expected to be accretive, further increase the scale of our regional gaming platform and drive free cash flow growth.’
Tropicana Casino and Hotel in Atlantic City has been one of the highest earners. Tropicana has been in existence since 1981 and was a part of the group Boardwalk. The casino has survived the test of time with the gambling world experiencing turbulent times over the years. This has not stopped the casino from being the second-highest revenue earner in New Jersey coming closely after Borgata.
At the venue, players are welcomed to a hotel with 2,400 rooms, a casino, restaurants, an entertainment complex, a spa, retail options and an IMAX movie theater. Tropicana also boasts a permanent sportsbook offered to New Jersey residents.
This was made permanent on March 2019 after opening its temporary sportsbook last year five months after the US Supreme court overturned the Professional and Amateur Sports Protection Act of 1992 (PASPA) which banned states outside Nevada from sports betting.
The sportsbook is 5,000 square feet and has 1,654 square feet video display allowing players to watch up to 16 games at once. The sportsbook has been offered through a partnership with the giant operator, William Hill.
With Tropicana Casino lacking an online sportsbook, there is an expectation that this will be among the issues that will be addressed and this would be another avenue to topple Borgata.
Caesar Entertainment deal
With the move it is seen as one of the major steps in taking over a huge market share in Atlantic City, Eldorado Resorts negotiations with Caesar Entertainment seem to be reached into terms and the purchase of Tropicana Casino would be used to give Eldorado Resorts leverage. Caesar Entertainment commands a huge share in Atlantic City with Harrah’s, Bally’s and Caesar Resort falling in the bracket.
Negotiations of the merger are soon to be announced soon and with Eldorado taking one of the biggest earners on board, it remains to be seen which direction they will take. If the deal comes to fruition, the multibillion-dollar deal would place the merged company as the largest gambling company operating in the world.