Reno, Nevada-based Eldorado Resorts recently named President and Chief Financial Officer Thomas Reeg chief executive officer. Reeg will replace current Chairman Gary Carano, son of the late Eldorado founder Don Carano, who has held several management positions with the company since 1980; his title will change to executive chairman.
Reeg joined Eldorado in 2007. He has been Eldorado’s president and a board member since 2014, and has served as chief financial officer since 2016. He was involved with negotiating, structuring and financing the company’s recent growth efforts. “I am honored to take over as chief executive officer given Eldorado’s prospects for continued growth and our solid financial position. Gary led a significant expansion of our property portfolio while maintaining true to the Carano family’s legacy.”
Carano said, “Having worked with Tom for more than 10 years, I have the greatest level of confidence in his leadership abilities, his industry innovation, drive to succeed and his capacity for extending Eldorado’s record of phenomenal growth. He shares the Carano family commitment to providing our guests with unmatched services. By putting this management change in place now, we will ensure a seamless transition and better position Eldorado to continue to execute on our growth strategies and further build value for our shareholders.” Carano said in a statement.
The company also named Anthony Carano president and chief operating officer. He previously served as Eldorado’s general counsel. The company will begin a search for a new chief financial officer.
The executive changes come as Eldorado nears completion of its $1.85 billion acquisition of Carl Icahn’s Tropicana Entertainment, in partnership with real estate investment trust Gaming and Leisure Properties. The Nevada Gaming Commission recently approved the acquisition, and Eldorado officials will meet soon with Missouri gaming regulators, the last required to approve the deal. Reeg said the company hopes to close purchase on or about October 1. “This is a significant transaction for us,” he said.
The deal will give Eldorado seven Tropicana casinos, including two in Nevada–the Tropicana Laughlin and the MontBleu Resort in South Lake Tahoe–giving Eldorado a total five Nevada properties, including its three flagship resorts in Reno.
The acquisition also will give Eldorado the Tropicana Atlantic City; Tropicana Evansville in Indiana; Belle of Baton Rouge in Louisiana; Trop Casino Greenville in Mississippi; and Lumière Place in St. Louis.
In total, Eldorado will operate 26 casinos in 12 states, with 36,000 slot machines and 12,000 hotel rooms, plus 20,000 employees. Reeg told the Nevada Gaming Commission the company’s long-term debt will increase from $2.3 billion to $3.8 billion when the deal closes.
Reeg noted the purchase does not include Tropicana’s small casino in Aruba. “We like the Caribbean, but not that much,” he said, adding Tropicana will sell the Aruba property in a separate transaction.
Since 2017, Eldorado has doubled in size. It acquired Isle of Capri Casinos and recently completed the purchase of the Grand Victoria Casino in Elgin, Illinois from a partnership including MGM Resorts International.
Eldorado also signed an agreement with the Cordish Companies to develop non-gaming entertainment at the company’s casino in Florida. In addition, William Hill US will serve as Eldorado’s exclusive sports betting operator.
Macquarie Securities Gaming Analyst Chad Beynon said Eldorado’s management change is considered to be a positive move. He told investors, “We remain confident in Eldorado’s ability to execute on operational and service improvements, merger and acquisitions synergies and overall growth under the current team.”
