Made whole
Made whole
Harrah's/Caesars merger gets OK in Nevada
In back-to-back sessions of the state's Gaming Control Board and Gaming Commission, Nevada regulators gave their approval of the $9 billion acquisition of Caesars Entertainment by Harrah's Entertainment.
Following the approvals, Harrah's officials said they expected the merger to close shortly. The merger will create the world's largest gaming company, with 40 properties in 12 states, 95,000 employees and $8.5 billion in annual revenues.
Nevada regulators dismissed concerns that the combination of companies would give it an unfair operating advantage in Las Vegas. Harrah's will operate six casinos in Las Vegas, five of which are on the Las Vegas Strip and one (The Rio) operating just off the Strip. With 16,285 rooms, the company would control 22.3 percent of the Strip's rooms. It will also control 17.7 percent of all slots and 21.2 percent of all table games.
MGM Mirage, which saw its $7.9 billion merger of Mandalay Resort Group close in April, has, by comparison, 12 Las Vegas Strip resorts with 49 percent of hotel rooms, 39.3 percent of slots and 41.2 percent of table games.
Regulators said neither merger would negatively affect the gaming business climate in Las Vegas.
"When you analyze the market, especially in Southern Nevada, at the end of the day the market is moderately concentrated," Control Board Chairman Dennis Neilander told the Las Vegas Review-Journal. "But when you look at the number of different products offered in the market and the fierce competition that exists, it doesn't rise to the level of concern. Competition tends to drive competition. There is always a point where there perhaps tends to be too much consolidation, but this deal does not represent that point."
Gaming Commission Chairman Peter Bernhard said he didn't think consolidation could be stopped and that "the benefits outweighed the negatives."
Harrah's Chairman and CEO Gary Loveman said no layoffs of front-line employees would occur with the merger and that about 70 percent of management would be kept. Current contracts and philanthropy projects Caesars had in place would also be maintained for at least a year.
Loveman said Harrah's would look to redevelop Bally's Las Vegas, perhaps changing the property's theme and name.
-Andy Holtmann
Harrah's/Caesars merger gets OK in Nevada
In back-to-back sessions of the state's Gaming Control Board and Gaming Commission, Nevada regulators gave their approval of the $9 billion acquisition of Caesars Entertainment by Harrah's Entertainment.
Following the approvals, Harrah's officials said they expected the merger to close shortly. The merger will create the world's largest gaming company, with 40 properties in 12 states, 95,000 employees and $8.5 billion in annual revenues.
Nevada regulators dismissed concerns that the combination of companies would give it an unfair operating advantage in Las Vegas. Harrah's will operate six casinos in Las Vegas, five of which are on the Las Vegas Strip and one (The Rio) operating just off the Strip. With 16,285 rooms, the company would control 22.3 percent of the Strip's rooms. It will also control 17.7 percent of all slots and 21.2 percent of all table games.
MGM Mirage, which saw its $7.9 billion merger of Mandalay Resort Group close in April, has, by comparison, 12 Las Vegas Strip resorts with 49 percent of hotel rooms, 39.3 percent of slots and 41.2 percent of table games.
Regulators said neither merger would negatively affect the gaming business climate in Las Vegas.
"When you analyze the market, especially in Southern Nevada, at the end of the day the market is moderately concentrated," Control Board Chairman Dennis Neilander told the Las Vegas Review-Journal. "But when you look at the number of different products offered in the market and the fierce competition that exists, it doesn't rise to the level of concern. Competition tends to drive competition. There is always a point where there perhaps tends to be too much consolidation, but this deal does not represent that point."
Gaming Commission Chairman Peter Bernhard said he didn't think consolidation could be stopped and that "the benefits outweighed the negatives."
Harrah's Chairman and CEO Gary Loveman said no layoffs of front-line employees would occur with the merger and that about 70 percent of management would be kept. Current contracts and philanthropy projects Caesars had in place would also be maintained for at least a year.
Loveman said Harrah's would look to redevelop Bally's Las Vegas, perhaps changing the property's theme and name.
-Andy Holtmann
