Fertitta in talks to own almost half of Atlantic City casinos

Fertitta Entertainment Inc. has agreed to acquire Caesars Entertainment Inc. in a deal valued at approximately $17.6 billion.
If finalized, Fertitta would own four of the nine casinos currently operating in Atlantic City.
The deal requires approval from regulatory agencies and is subject to competing offers until July 11.

The casino industry in Atlantic City appears to be headed toward a major ownership consolidation.

Caesars Entertainment Inc. says it’s agreed to a “definitive agreement” for an all-cash buyout of the company that’s being valued at approximately $17.6 billion. It would be acquired by Fertitta Entertainment Inc., which owns Golden Nugget Atlantic City.

Caesars Entertainment and Fertitta Entertainment both issued announcements May 28 about the transaction.

If the agreement is finalized, Fertitta then would own four of the nine casinos operating in Atlantic City. Caesars Entertainment owns Caesars Atlantic City, Harrah’s Atlantic City and Tropicana Atlantic City.

In its announcement, Caesars said its directors have already approved the transaction.

Board members are asking shareholders to approve it now. Shareholders would receive $31 cash for each outstanding share, which represents an estimated 49% premium.

“Fertitta Entertainment brings a proven operating model with a track record of successfully integrating and growing leading hospitality and entertainment businesses,” Caesars leaders wrote. “The transaction positions Caesars to continue executing on the strategy that has made it the leading casino-entertainment company in the United States.”

Fertitta’s announcement stated that “Fertitta Entertainment’s agreement to acquire Caesars Entertainment brings together two of the world’s premier hospitality and gaming companies, each with deep roots in exceptional guest experiences and industry-leading loyalty programs.”

The announcement states that there’s no guarantee the sale will be finalized. The transaction must be cleared by multiple regulatory agencies, and Caesars also has through July 11 to accept competing proposals.

According to the announcement, Fertitta would assume approximately $11.9 billion of Caesars’ debt. That debt is included in the total $17.6 billion purchase price.

Another aspect of the sale is the Carano family, which owns approximately 5% of Caesars common stock, would roll a portion of their equity interests into Fertitta Entertainment.

Fertitta is a family-owned and diversified conglomerate based out of Houston, Texas.

Casino industry roots go back to the 1970s

The basis for the city’s casino industry is the New Jersey Casino Control Act, adopted in 1977.

Members of the New Jersey Casino Control Commission annually report on how the industry is doing. As of 2024, the commission listed every casino as profitable.

The commission also reported that casino hotels were employing more than 21,700 people with combined salaries nearing $740 million that year.

Brian Tyrrell, a professor of hospitality and tourism management at Stockton University, said one regulatory hurdle may be how the sale is to be evaluated under the “undue economic concentration” clause in the Casino Control Act.

Tyrrell said the topic was explored as recently in 2020 in regard to the merger then of Caesars Entertainment and El Dorado Resorts Inc.

El Dorado was allowed to own four casinos, but the situation lasted briefly because Bally’s was sold to another operator, he said.

“The Golden Nugget and the three Caesars properties … are distinct in their brand identities, so it will be interesting to see which if not all of them Fertitta chooses to continue operating and how that will impact brand promises such as free parking at Golden Nugget,” Tyrrell said.

Tyrrell said it’s not a given that any casino would close because of the proposed transaction.

“The biggest threat to a possible casino closure at this time is the potential impact of New York casinos and the possibility of North Jersey casinos,” he said.

What casinos are in Atlantic City?

The state Casino Control Commission, in its most recently published annual report in 2024, listed the casinos in Atlantic City and their starting dates as follows:

Resorts Casino Hotel, 1133 Boardwalk, opened May 26, 1978.
Caesars Atlantic City/Caesars Entertainment, 2100 Pacific Ave., opened June 26, 1979.
Bally’s Atlantic City, 1900 Pacific Ave., opened Dec. 29, 1979.
Harrah’s Resort Atlantic City, 777 Harrah’s Blvd., opened Nov. 23, 1980.
Tropicana Atlantic City, 2831 Boardwalk, opened Nov. 26, 1981.
Golden Nugget Atlantic City, Huron Avenue and Brigantine Boulevard, opened June 19, 1985.
Borgata Hotel Casino & Spa, 1 Borgata Way, opened July 2, 2003.
Hard Rock Atlantic City, 1000 Boardwalk, opened June 27, 2018.
Ocean Casino Resort, 500 Boardwalk, opened June 27, 2018.

Joe Smith is a N.E. Philly native transplanted to South Jersey almost four decades ago, concentrating on housing, politics, real estate, business, and development. He is a former editor and current senior staff writer for The Daily Journal in Vineland, Courier-Post in Cherry Hill, and the Burlington County Times. Have a tip? Support local journalism with a subscription.