With Wednesday’s permission from the Federal Trade Commission for Harrah’s Entertainment, Inc. to acquire Caesars Entertainment, Inc., the deal only needs the nod from Nevada gambling regulators today for Monday to become the day that Harrah’s regains from MGM Mirage the title of the world’s largest gambling concern, ending nearly a year of approval negotiations.

Gambling regulators in the US states of Indiana, Louisiana, Mississippi and New Jersey have already given their consent, and Nevada’s Gaming Commission and Gaming Control Board will separately consider the transaction today, June 10. Approval is expected and the merger should be completed on June 13.

By acquiring Caesars in a $5.2 billion deal, Harrah’s will gain 21 properties on 3 continents with over 25,000 hotel rooms, the Caesars, Bally’s, Flamingo, Grand Casinos, Hilton and Paris brand names to add to their 25 US Harrah’s and Horseshoe casinos, and annual revenue of some $8.75 billion from the combined companies. It will also benefit from increased exposure on Las Vegas’s Strip to compete with MGM Mirage’s 11 Strip properties. MGM Mirage has been, albeit briefly, the biggest gaming company in the world since it acquired the Mandalay Resort Group in April.

The Caesars Board of Directors accepted the Harrah’s offer in July 2004 and the shareholders of both companies approved the deal on March 11, 2005. Today should see the final step in the process needed to complete the merger, making Monday the birth of a new world’s largest gambling concern.
(E-06.10.05)

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