MW Houston Rockets owner is making an $18 billion bet on Las Vegas by buying Caesars

By Tomi Kilgore

Fertitta Entertainment, which owns Golden Nugget casinos, Landry's and the NBA's Rockets, is buying Caesars at an 8% premium to Wednesday's closing price

The holding company of Tilman Fertitta, who owns the NBA's Houston Rockets and Golden Nugget casinos, is buying Caesars Entertainment in a deal valued nearly $18 billion.

Shares of Caesars Entertainment rose Thursday, after the Nevada-based casino operator agreed to be acquired by Fertitta Entertainment in an all-cash deal valued at nearly $18 billion, including debt.

The move by Fertitta - the holding company for Tilman Fertitta that also owns Golden Nugget casinos, Landry's hospitality and casinos, and the NBA's Houston Rockets - appears to be a big bet on Las Vegas, where Caesars $(CZR)$ gets a large chunk of its revenue, with eight locations on the Las Vegas Strip. Golden Nugget Las Vegas, one of its seven locations across the U.S., is in the city's downtown area, miles from the Strip.

Under terms of the deal announced early Thursday, Fertitta will pay $31 in cash for each Caesars share outstanding. That represents a 7.7% premium to Wednesday's closing price and a 49.3% premium to the closing price on Feb. 25, just before speculation about a deal emerged.

The deal is valued at about $17.6 billion, including the assumption of $11.9 billion of outstanding Caesars debt.

Caesars shares were up 1.5% in recent morning trades, trading 5.8% below the buyout price.

Fertitta said the deal doesn't just bring together two premier hospitality and gaming companies but also combines "best-in-class" loyalty programs.

"From prime locations along the Las Vegas Strip to our footprint in smaller regional markets, members will enjoy significant access and rewards across our expanded network of casinos, signature hotels, award-winning restaurants, and premier entertainment, all through one seamless experience," Fertitta said in a statement.

In the latest quarter, Caesars booked revenue of $1 billion from Las Vegas, or 34.9% of its total revenue of $2.87 billion.

Caesars said its board of directors recommends shareholders approve the deal.

"The board, after detailed consideration with the assistance of its outside financial and legal advisors, determined that the immediate cash premium offered by this transaction is compelling for Caesars shareholders, and its approval of this transaction underscores its commitment to drive and deliver value for shareholders," the company said in a statement.

Keep in mind that Caesars has reported losses per share that were much wider than expected for five straight quarters and for nine of the past 10 quarters, according to FactSet data.

And that, while total revenue has increased from a year ago, Las Vegas revenue has declined for seven straight quarters, the FactSet data show.

Still, the stock has rallied 24.8% in 2026, while the S&P 500 index SPX has gained 9.8%.

-Tomi Kilgore

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May 28, 2026 10:32 ET (14:32 GMT)

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