Fertitta set to reshape Las Vegas casino scene with $17.6bn deal to buy Caesars Entertainment
Fertitta’s $17.6bn deal for Caesars looks set to reshape the casino landscape on the Las Vegas Strip.
US. – Hospitality magnate Tilman Fertitta has reached a definitive agreement to buy the US casino giant Caesars Entertainment in a transaction valued at around $17.6bn. The move positions Fertitta to realise his ambitions to reshape the casino scene in Las Vegas.
Fertitta, who is currently the US ambassador to Italy and San Marino, is the owner of Fertitta Entertainment, a holding company that owns the casino and hotel chain Golden Nugget and Landry’s restaurants as well as the NBA’s Houston Rockets. He has offered $31 per share for Caesars, which represents a 49 per cent premium on the stock’s closing price on February 25 before the possibility of a deal was first reported and about 8 per cent above its closing price yesterday (Wednesday May 28).
Caesars said the agreement carries no financing condition. Funding will come from Fertitta Entertainment’s equity, Caesars’ existing debt and new financing commitments from a consortium of ten banks. The deal would comprise $5.7bn in equity and assumes around $11.9bn in outstanding debt.
The company’s board has unanimously approved the sale and urged shareholders to accept the deal, with July 11 the deadline to consider alternative offers under a “go‑shop” provision.
A concern for competition?
If approved, the deal would stand among the largest acquisitions in US gaming history. It’s been suggested that it’s likely to come in for attention from the Federal Trade Commission for competition reasons.
Fertitta already has more than 600 venues in 36 states and 15 countries. Caesars merged with Eldorado Resorts in 2020 to form one of the biggest casino and entertainment companies in the US, running more than 50 casinos across North America, including Caesars Palace, Harrah’s and Eldorado, and a retail and online sports-betting platform.
However, given Fertitta’s closeness to the current US administration, many observers expect competition concerns may be brushed aside. Fertitta was a donor to President Donald Trump’s 2024 election campaign. TD Cowen analyst Lance Vitanza is quoted by Reuters as saying that the deal “appears more likely than not to receive the necessary approvals given Fertitta’s role in the current administration.”
Fertitta stepped down as CEO of Landry’s in April last year after being appointed US Ambassador to Italy, but his ambitions on the Las Vegas Strip are longstanding. In 2022, he bought a 6.2‑acre parcel of premium real estate at Las Vegas Boulevard and Harmon Avenue for $270m with plans for a casino development that has yet to break ground.
Reports earlier this spring suggested Fertitta was negotiating a purchase of Caesars, fending off rival interest from Carl Icahn’s investment firm. The Carano family, which secured a minority stake in Caesars through Eldorado Resorts’ $17.3bn merger in 2020, will roll part of its 5 per cent holding into Fertitta’s enterprise.
For its part, Caesars has been facing pressure amid a decline in visitor numbers in Las Vegas. Although it has expanded into online sports betting, backed by its 2021 acquisition of William Hill’s US assets, its offering remains dwarfed by larger rivals FanDuel and DraftKings and now faces the rising competition posed by prediction markets.
Caesars executives Tom Reeg (CEO) and Bret Yunker (CFO) are expected to remain in their posts under the new ownership.
