FTC approves Caesars-Eldorado acquisition deal—on one condition

The U.S. Federal Trade Commission is rolling the dice on the proposed $17.3 billion Eldorado Resorts-Caesars Entertainment deal.

The federal government said today that the merger can go through if Eldorado divests certain assets. The concern was decreased competition.

According to the FTC’s proposed consent order, Eldorado must divest the MontBleu Resort Casino and Spa in the South Lake Tahoe, Nevada, area and the Eldorado Casino Resort in the Bossier City-Shreveport, Louisiana, area to Twin River Worldwide Holdings.

Also on the table is Eldorado’s Isle of Capri Casino in Kansas City, Missouri, which the company already is selling. Caesars owns Harrah’s Kansas City Hotel and Casino there. The FTC said that under the proposed settlement, it can require Eldorado to divest the Isle of Capri if the sale isn’t completed within 60 days of when the Caesars mega-deal closes.

The proposed Eldorado acquisition of Caesars was first announced last June.

“We are delighted to announce the FTC’s approval of our planned merger with Caesars, which is expected to create the largest owner and operator of U.S. gaming assets. We look forward to completing the merger, subject to receipt of the remaining consents and approvals from regulators in Nevada, New Jersey, and Indiana,” Eldorado CEO Tom Reeg said in a written statement.