LAS VEGAS – One of two major Las Vegas Strip casino operators is set to be sold to billionaire hospitality mogul Tilman Fertitta.
Caesars Entertainment announced that it had entered into a “definitive agreement” to be purchased by Fertitta Entertainment in an all-cash transaction valued at approximately $17.6 billion on May 28, after reports of the sale circulated through Sin City.
Caesars operates more than 50 properties nationwide, including eight properties on the Las Vegas Strip. Those properties include its namesake, The Flamingo – one of the Strip’s founding resorts – and the Vanderpump Hotel.
Fertitta owns the Golden Nugget casino chain (including the original on Fremont Street in Downtown Las Vegas), the NBA’s Houston Rockets, the WNBA’s Houston Comets, and Landry’s Inc., a dining, entertainment and hospitality corporation behind brands such as Bubba Gump Shrimp Company, Rainforest Café and the Galveston Island Historic Pleasure Pier.
According to Forbes, Fertitta has an estimated net worth of $11 billion.
Fertitta Entertainment said in its announcement of the purchase that it would combine the company’s loyalty programs, Caesars Rewards, Golden Nugget’s 24 Karat Select Club and Landry’s Select Club, to create “an industry-leading loyalty ecosystem in the hospitality industry.”
“The combined company will offer guests a broader range of destinations and experiences connected to the Caesars Rewards loyalty network,” Caesars said in the sale announcement.
The “all cash deal” approved by Caesars’ board of directors includes Fertitta taking over Caesars’ $11.9 billion loan and “new committed debt financing arranged by a group of 10 banks.” The deal is subject to a shareholder vote, a “go-shop” period that allows Caesars to consider other offers and potential regulatory scrutiny.
TD Cowen analyst Lance Vitanza told Reuters the deal “has a high probability of not receiving the necessary approvals” because Fertitta is the U.S. ambassador to Italy and San Marino and a longtime supporter of President Donald Trump.
Nevada Attorney General Aaron Ford’s office said he had “no comment” when contacted by USA TODAY to clarify whether he would seek to block the deal. USA TODAY also contacted Nevada Governor Joe Lombardo for comment.
Caesars’ second merger in a decade
This is the second time since 2020 that Caesars has merged with another company.
That year, Eldorado Resorts Inc. and then-Caesars Entertainment Corp. merged in a $17.3 billion deal following a long-running effort by the Carano family to acquire the gaming giant, according to the Reno Gazette Journal, a part of the USA TODAY Network. That deal saw Caesars Entertainment Inc. take on $8.8 billion in debt amid the COVID-19 pandemic.
According to the sale announcement, Caesars executives, including President and Chief Operating Officer Anthony Carano and CEO Tom Reeg, as well as property-level management and personnel, are expected to remain in their roles under Fertitta’s ownership.
The Carano family will convert their outstanding 5% of Caesars shares into equity in Fertitta Entertainment, which will take the company private upon completion of the sale.
Campaign, reaction of unions
Washoe County Commissioner Alexis Hill, who is running against Ford in the Democratic gubernatorial primary, said in a statement first provided to USA TODAY that “a friend of Donald Trump having even more control over this industry” is bad for the state.
“Billionaires like Tilman Fertitta and their giant corporations must start paying their fair share in taxes so everyday Nevadans don’t pay taxes,” he said. “Casino and hospitality workers across the state already work in unsafe conditions, with reduced hours, lost livelihoods and child care.”
The powerful culinary union said in a statement that it had “strong relationships” with both parties and that “further discussions will take place regarding the full impact of this purchase.”
“The Pak Union is committed to ensuring that workers’ rights are respected, their jobs are protected and the union contract is fully implemented,” the union said.
USA TODAY contacted the Ford and Lombardo campaigns, along with other major unions in Las Vegas, for comment.
Contributing: Jason Hildago, Reno Gazette Journal; reuters