Tilman Fertitta to buy Caesars in $17B-Plus Deal

Houston billionaire Tilman Fertitta struck a deal to buy Caesars Entertainment, one of the largest casino and resort companies in the world.

Houston-based Fertitta Entertainment will acquire Las Vegas-based Caesars, and all of its debt, in an all-cash deal valued at around $17.6 billion. Around $12 billion of that total is the assumption of Caesars’ debt, according to the Houston Business Journal.

The hospitality and real estate mogul behind Landry’s and owner of the Houston Rockets, Fertitta has been eyeing Caesars for nearly a decade, according to the outlet. In 2018, he proposed merging his in-house Golden Nugget casino chain with the company. In 2019, many outlets reported that Fertitta was trying to close in on a new bid for Caesars.

The acquisition includes a “go-shop” period that allows Caesars to entertain other offers. The go-shop period ends July 11, after which Fertitta will have crossed the Rubicon. Shareholders in the iconic Las Vegas-based Caesars would receive $31 in cash for each share, should the purchase go through.

Last year, Fertitta was confirmed by the U.S. Senate to become the ambassador to Italy and San Marino. Fertitta was required to file disclosure forms about his companies, lifting the veil on his millions in assets and debts. Across properties such as a New Ulm Ranch, holdings in Wynn Resorts and Fertitta Entertainment, among others, he reported $459 million in assets. Fertitta’s debt reports covered $547 million, including nine loans of at least $50 million.

Fertitta’s Caesars acquisition could be a signal flare. Gambling is illegal in Texas, but power players like Miriam Adelson, who purchased the Dallas Mavericks and is moving parts of her Las Vegas Sands operation to the DFW Metroplex, are pushing for legalization. Entities tied to the gambling industry have opened up the pocketbook for local government races across the state, seeking to place gambling-friendly lawmakers in power.

Acquiring Caesars puts Fertitta Entertainment’s domestic casino resort total across the country at 60.

— Hunter Cooke