Gaming and hospitality company Eldorado Resorts has been given a temporary approval to own and operate Tropicana Casino in Atlantic City. The move comes as part of a $1.85-billion acquisition deal that will see Eldorado assume control over the gambling venue’s parent company Tropicana Entertainment. The later company owns six more casino properties across six states.
The New Jersey Casino Control Commission issued earlier this week a temporary license that authorizes Eldorado to operate Tropicana, while its application for a full license is under review. The gambling venue was Atlantic City’s second highest grossing casino last year, trailing only behind the Borgata.
At present, Tropicana is one of the city’s few casinos that do not provide sports betting, following the legalization of that type of activity in the state in early June. However, this is about to change soon. The casino announced earlier this week that it has penned a partnership agreement with British bookmaker William Hill that would see the launch of a sportsbook at the property.
Tropicana General Manager Steve Callender said in a press release from a few days ago that a brand-new facility is currently being created in the casino’s North Tower and that it would host sports betting. More details are expected to be released in the coming weeks.
In a separate round of news, Eldorado announced last week that it has entered into an agreement to buy a 20% stake in William Hill’s US business. In addition, the bookmaker would become the exclusive sports betting partner for the Reno, Nevada-based gaming and hospitality company. Eldorado currently operates 21 properties in 11 states. The acquisition of Tropicana Entertainment will extend the company’s footprint across two new states.
Details about the Deal
It was in April when Eldorado announced that it would acquire Tropicana Entertainment and its properties across six states in a deal valued at $1.85 billion. Tropicana is currently owned by New York investor Carl Icahn. The transaction is expected to be completed sometime in the fourth quarter of the year.
It is also important to note that Eldorado has partnered casino REIT Gaming and Leisure Properties to buy Tropicana Entertainment. The deal will see Gaming and Leisure pay the amount of $1.21 billion and lease the Tropicana properties to Eldorado, while the latter company will pay the remaining $640 million.
The purchase of Tropicana Entertainment was Eldorado’s second major acquisition deal in 18 months amid a wave of consolidation within the US land-based casino industry. Last May, the Nevada-based gaming and hospitality company completed the acquisition of Isle of Capri Casinos for $1.1 billion.
Separately, Eldorado also announced earlier this year that it has agreed to buy Grand Victoria Casino in Elgin, Illinois from rival MGM Resorts International for the total amount of $327.5 million.
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