New Jersey regulators take up Eldorado plan to buy Caesars

New Jersey gambling regulators began Wednesday to consider Nevada-based Eldorado Resorts Inc.’s plan to buy Caesars Entertainment Corp. in a sweeping $17.3 billion deal affecting four of nine casino properties in Atlantic City.

Approval by the New Jersey Casino Control Commission would be the final hurdle in Eldorado’s bid to become what Commissioner Alisa Cooper called “the biggest gaming company in the world” — a casino giant controlling 52 properties in 16 U.S. states under the Caesars Entertainment brand.

“Atlantic City is going to be a significant piece of this combined company,” Eldorado chief executive Thomas Reeg testified at a video hearing streamed on the internet with the possibility of extending into Thursday.

Company executives acknowledged previous understaffing at Atlantic City properties and promised that any job cuts at the combined company’s properties would be cleared first by state regulators.

A $25 million sale of Bally’s Atlantic City hotel-casino by Caesars Entertainment and VICI Properties to Rhode Island-based Twin River Worldwide Holdings is pending. That would leave Eldorado with three resorts within driving distance of New York and Philadelphia: Caesars Atlantic City, Harrah’s Resort Atlantic City and the Tropicana Atlantic City.

The company is committing to keeping the properties open for at least five years. Eldorado Chief Financial Officer Bret Yunker promised $400 million in improvements to the three properties over the next three years, followed by reinvestment of 5% of revenues annually.

“Atlantic City, where it sits, is in the middle of a gigantic population center,” Reeg said. “It’s our job to make our properties attractive enough for people to get in the car or get in that charter plane.”

Nevada...