Published on: March 13, 2026, 02:24h.
Updated on: March 13, 2026, 02:24h.
- Morningstar recommends Caesars pursue at least a 10% premium over its $35 fair value assessment.
- An analyst cautioned about potential regulatory challenges if Fertitta succeeds in his acquisition attempt.
Caesars Entertainment (NASDAQ: CZR) is positioned to demand a higher price in a potential acquisition than the offers of $34 per share from Tilman Fertitta and $33 per share from Carl Icahn.
In a recent analysis, Morningstar’s expert Dan Wasiolek indicates that, given Caesars’ extensive portfolio, which includes the largest number of domestic casinos, the company should negotiate for more than $35 per share.
“We believe Caesars should aim for at least a 10% premium over our $35 per share valuation, which corresponds to approximately eight times the 2027 enterprise value/earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR), recognizing the quality of its asset portfolio,” the analyst comments. “This multiple aligns with that of US peers like Penn Entertainment (NASDAQ: PENN), which has comparable debt and growth profiles.”
He also notes that it’s not unusual for Caesars to be in the spotlight for acquisition talks, as the company has changed ownership multiple times within the last thirty years, with the latest notable acquisition being Eldorado Resorts’ $17.3 billion takeover in 2020 that formed the “new Caesars.”
“Saers holds a 14% share of the US gaming market, overseeing 50 casino resorts, several in Las Vegas that generated around $700 million in free cash flow in 2025, based on our estimates,” adds the Morningstar analyst.
Potential Regulatory Concerns if Fertitta Acquires Caesars
In February, rumors began circulating that Caesars was considering multiple acquisition proposals, including one from Fertitta. However, neither he nor Caesars have officially confirmed any discussions or his purported $34 per share offer, valuing the company at $7 billion.
What is certain is Fertitta Entertainment’s ownership of the Golden Nugget casinos, and if the Houston Rockets owner succeeds in acquiring Caesars, significant geographic overlap between the two casino portfolios could raise red flags with regulators, as noted by GimmeCredit’s Kim Noland.
“There are potential regulatory implications considering Mr. Fertitta’s ownership of Golden Nugget and other gaming assets,” she outlines in a recent report. “While there are whispers that no imminent deal will be disclosed—and its certainty is still uncertain—Caesars’ recent challenges with lower tourism to the Las Vegas Strip may suggest the company could be on the market.”
If Fertitta were to finalize the deal for Caesars, he would oversee four casinos in Atlantic City, NJ, along with three each in Lake Tahoe and Laughlin, Nevada. This level of market overlap might necessitate divestitures, but such details remain to be seen.
Fertitta’s Ongoing Interest in Caesars
Fertitta, who currently holds the position of US ambassador to Italy and San Marino, has long harbored ambitions to own a casino hotel on the Las Vegas Strip. His interest in Caesars is not a new development and may have spurred the latest takeover discussions.
“Fertitta, who owns the Golden Nugget brand, dining establishments, and the NBA’s Houston Rockets, attempted to acquire Caesars back in 2018-19 before the company’s merger with Eldorado,” Wasiolek concludes.