Eldorado Resorts and Caesars Entertainment to divest assets in two local marketsChristian Fernsby ▼ | June 27, 2020
The Federal Trade Commission will require casino operator Eldorado Resorts, Inc. to divest casino-related assets in the South Lake Tahoe area of Nevada, and the Bossier City-Shreveport area of Louisiana, to settle charges that Eldorado’s $17.3 billion agreement to acquire Caesars Entertainment Corporation likely would be anticompetitive in those markets.
Asset Caesars Entertainment
Topics: Eldorado Resorts Caesars Entertainment
The complaint alleges that the proposed acquisition would harm competition for casino services in the South Lake Tahoe, Bossier City-Shreveport, and Kansas City local markets.
The combination thus would increase the likelihood that Eldorado would unilaterally exercise market power, leading to higher prices and reduced quality for consumers of casino services.
The terms of the settlement require Eldorado to divest the assets described below. The parties must maintain the viability, marketability, and competitiveness of the assets until the divestitures are complete.
The proposed consent order appoints a monitor to ensure the parties’ compliance with the order to maintain assets, the consent order, and the divestiture agreements.
In the South Lake Tahoe area, Eldorado must divest its only casino, the MontBleu Resort Casino and Spa, to Twin River Worldwide Holdings, Inc.
In the Bossier City-Shreveport area, Eldorado is also required to divest its only casino, the Eldorado Casino Resort, to Twin River.
Independent from its proposed acquisition of Caesars:
In Kansas City, Missouri, Eldorado is selling its Isle of Capri casino. Under the proposed settlement, if the Isle of Capri sale is not complete within 60 days after the proposed acquisition of Caesars closes, the Commission may, at its discretion, require Eldorado to divest the casino to a Commission-approved buyer within 12 months. ■