A Texas billionaire has emerged as the leading candidate to buy one of the Strip’s biggest casino companies, according to a new report.
Tilman Fertitta has been in exclusive talks to buy Caesars Entertainment Inc. for $7 billion after fending off a competing bid from Carl Icahn’s investment firm, the Wall Street Journal reported Wednesday. The WSJ’s unnamed sources said Fertitta’s company, Fertitta Entertainment, has discussed paying around $34 a share for the casino operator.
Caesars Entertainment stock jumped nearly 12 percent to $29.08 a share after the WSJ story appeared Wednesday afternoon. At the close of business Thursday, Caesars Entertainment’s stock price was $28.41, giving it a market capitalization of about $5.9 billion.
Caesars Entertainment has a reported debt load of $11.9 billion, which does not account for long-term lease payments on several casino properties across the country, including Caesars Palace and Harrah’s in Las Vegas.
Similar to a Financial Times story in February, which first reported the potential sale, the WSJ’s sources said no sale announcement is imminent, and it’s possible nothing will happen between the two parties.
Caesars Entertainment was also approached with a cash offer of approximately $33 per share from Icahn Enterprises. Caesars Entertainment has yet to formally decline that offer, according to the WSJ.
Caesars Entertainment was acquired by Reno-based Eldorado Resorts Inc. in 2020 for $17.3 billion. The resulting entity retained the Caesars brand.
Fertitta is currently the US Ambassador to Italy and San Marino. His hospitality empire includes several Golden Nugget casino hotels in Nevada, several restaurant brands under the Landry’s Inc. umbrella and is the largest single shareholder in Wynn Resorts Ltd. He is also the owner of the NBA’s Houston Rockets. Fertitta is a cousin of Lorenzo and Frank Fertitta III, who operate Red Rock Resorts and Station Casinos.
Caesars operates more than 50 properties under its Caesars, Harrah’s, Eldorado and Tropicana brands. Its shares, and those of other gaming operators, have fallen in recent months as investors weigh the potential competitive threat posed by prediction platforms such as Polymarket and Kalshi.
Some potential bidders had assumed any acquisition would be subject to approval from Vici Properties Inc, the real estate investment trust that divested from Caesars Entertainment’s 2017 bankruptcy and is now one of its biggest landlords. But people familiar with the matter said the proposals from Fertitta and Icahn Enterprises are structured so that Caesars Entertainment can be split up without Vici’s signoff, according to the WSJ.
Contact David Danzis at ddanzis@ theplayerlounge.com or 702-383-0378. Follow @AC2Vegas_Danzis on X.
