Caesars Entertainment, a Las Vegas Strip icon, is sold for $5.7 billion to Fertitta

LAS VEGAS (FOX5) — Houston-based billionaire Tilman Fertitta plans to buy Caesars Entertainment and take it private in a deal valued at $17.6 billion.

Fertitta Entertainment will pay $5.7 billion and take on close to $12 billion in debt from Caesars.

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

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Union response

The Culinary Union said 10,000 Culinary Union members are employed at Caesars Entertainment properties throughout the state.

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“Culinary Union has had strong relationships with both Caesars and Tilman Fertitta and we do not see that changing. We anticipate there will be discussions ahead about the full ramifications of this purchase and while we do not know all the details yet, we are confident that based on our relationships with both companies, we will continue to have a positive relationship going forward,” said the Culinary Union.

It added, “Culinary Union remains committed to ensuring that workers’ rights are respected, their jobs are protected, and the union contract is fully enforced.”

Expert analysis

Amanda Belarmino, an Associate Professor at the William F. Harrah College of Hospitality at UNLV, said the acquisition itself drives what happens to jobs.

“The thing about this that I think has some potential positives for the current Caesars employees is that while Fertitta has experience in the city with the Golden Nugget, he isn’t a large player,” Belarmino said. “So, it’s not like when, say, Harrah’s and Caesars merged or when MGM and Mirage merged, where you had a lot of repetition of corporate jobs, probably not going to have that much of that here because there’s not a lot of people here in terms of losing their jobs.”

Belarmino added, “I did all of my graduate work in Houston so I’m quite familiar with Fertitta, with his operations, and with people who’ve worked for them. And he has a very good reputation as an employer.”

FOX5 has yet to hear back from Fertitta Entertainment.

Caesars says its board approved the deal and recommends shareholders vote in favor. Caesars says the agreement includes a “go-shop” period through July 11. 2026, during which time “Caesars and its financial and legal advisors may solicit, consider and negotiate alternative acquisition proposals from third parties.”