Share 
Caesars is going private after it agreed to a $17.6 billion all-cash transaction deal with Fertitta Entertainment.
The company made the announcement on Thursday, settling months of rumors about the takeover.
However, the deal requires approval from shareholders and regulators, and Caesars still has the right to consider and negotiate alternative proposals until July 11.
The staggering numbers
The $17.6 billion deal with Fertitta Entertainment includes assuming the casino’s outstanding debts valued at about $12 billion. Fertitta will finance the deal through equity and debt financing from 10 banks.
Fertitta Entertainment will pay $31 per share. Notably, that is a premium of 49% compared to the price of Caesars shares on Feb. 25, when rumors of the takeover were first reported.
Earlier in the year, Fertitta had proposed to buy Caesars for about $7 billion, translating to about $34 per share. Interestingly, Icahn Enterprises had also proposed a takeover in an all-cash deal valued at about $33 per share. At the time, news of the potential deal sent Caesars stocks up nearly 12%, reaching about $29.07. CZR closed at $28.78 per share following confirmation of the deal with Fertitta.
Potential obstacles ahead
The press release by Caesars highlighted the fact that the acquisition will see Fertitta own 60 casinos and gaming facilities across the US. That will probably change, however, as the company would hold too many gambling assets.
Indeed, various casinos have been forced to trim their assets in the past after acquisitions. For example, the $17.3 billion merger between Eldorado Resorts and Caesars Entertainment in 2020 saw state regulators force the companies to dump multiple assets before they could finalize the deal.
Bally’s Atlantic City Hotel & Casino was also forced to sell some of its property in Atlantic City to prevent the company from owning too much of the boardwalk.
Of the nine casinos in Atlantic City, Caesars Entertainment owns three, while Fertitta owns Golden Nugget. The two companies also own casinos in Las Vegas; Laughlin, NV; Louisiana; and Mississippi.
Notably, the C-suite and other corporate management and property-level management will keep their roles, including CEO Tom Reeg, CFO Bret Yunker, and COO Anthony Carano.
Will betting on Rockets be limited nationwide?
Fertitta Entertainment also owns the NBA’s Houston Rockets. To this end, Fertitta’s move to acquire Caesars, which owns multiple land-based casinos and sportsbooks, and well as online sportsbooks, could impact betting on the Rockets.
NBA policies and betting regulations direct that sportsbooks owned by a team owner must remove those franchises from their betting boards to prevent conflict of interest. This means that you cannot bet on the Houston Rockets at any of Fertitta’s sportsbooks, both land-based and online.
If the deal with Caesars Entertainment goes through, this will mean that fans and bettors will have fewer platforms where they can wager on the Rockets.
