US billionaire Fertitta buys Caesars for US$5.7 billion

TILMAN Fertitta, a self-made US billionaire who has built an empire on gumption and debt, is on the verge of his biggest deal yet.

The 68-year-old entrepreneur agreed on Thursday (May 29) to buy the legendary Caesars Entertainment for US$5.7 billion, excluding debt, that will merge his casino and restaurant business with the iconic Las Vegas company after nearly a decade-long quest.

With Caesars, Fertitta will add more than 50 resorts to a portfolio that already counts some 600 properties in 36 states and more than 15 countries, including the Golden Nugget casino chain, casual dining brands such as Rainforest Cafe and Bubba Gump Shrimp, high-end steakhouses like Mastro’s and New York’s Keen’s, and the NBA’s Houston Rockets, which he bought in 2017 for US$2.2 billion. 

Some of Fertitta’s holdings, including non-casino hotels and the Rockets, will not be merged with Caesars. 

“My theory has been if somebody said ‘how did you become worth so much money?’ it’s because I’ve never sold anything,” Fertitta once told an interviewer.

From his early days peeling shrimp and waiting tables at his dad’s waterfront establishment in Galveston, Texas, Fertitta has built an empire of eateries and gambling brands and amassed a US$13 billion fortune along the way. His business acumen, which he showed off in a starring role in the CNBC reality series Billion Dollar Buyer and in a 2019 memoir, Shut Up and Listen!, grabbed the attention of President Donald Trump, who appointed him ambassador to Italy and San Marino last year. 

Biggest challenge

While Fertitta has acquired hundreds of businesses and properties over the years, Caesars would be his biggest challenge. The company owns a large online gambling business and operates a network of casinos from New Jersey to California, but it had been the worst performing of the big casino operators prior to Fertitta’s offer. Caesars has lost market share at its regional properties and has been hit with fewer visitors to Las Vegas. Its online betting arm, which trails larger rivals such as FanDuel and DraftKings, faces growing competition from prediction markets.

Fertitta, who began as a real estate developer struggling through the Texas oil bust of the early 1980s, has a knack for overcoming adversity. He dropped out of business classes at the University of Houston and acquired a controlling interest in Landry’s Seafood House Restaurant and Willie G’s Seafood & Steak House in 1986. In 2005, he moved into gambling with the US$295 million purchase of Golden Nugget Hotels and Casinos in Las Vegas and Laughlin, Nevada. 

In 2007, Fertitta wanted to buy restaurant operator Smith & Wollensky, but lost out to Patina Restaurant Group. Ultimately, he did buy several steakhouse brands including Morton’s and Del Frisco’s related assets, becoming one of the dominant players in the luxury steakhouse business. 

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While he owns a casino in downtown Las Vegas, Fertitta has always craved a property on the city’s famous Strip. He has purchased land there that he hopes to develop one day. Fertitta has had his eye on Caesars since first approaching the company in 2018.

Over the years, the outspoken and meticulous Fertitta has earned a reputation for circus-style showmanship and a knack for knowing what consumers want. Houston’s Downtown Aquarium, which he owns, has featured attractions such as the “Mysterious White Tigers of the Maharaja’s Temple”. At a Rainforest Cafe in Galveston, diners take a boat through a winding river with lush vegetation and animatronic jungle animals, including a gorilla and an elephant.

Fertitta expanded the Landry’s business in part by modernising struggling brands. He is said to be detail-obsessed to the point of differentiating between a 60-watt and 70-watt lightbulb. He notices the little things, from crumbs on the bar to wobbly tables. 

Wynn Resorts stake

In 2024, he revealed a 9.9 per cent stake in Wynn Resorts, which he’d been building over the previous two years, and said he was unhappy with the casino operator’s performance and share price. Fertitta thought the Wynn management wasn’t doing a good enough job communicating with investors and saw opportunities to expand the brand, Bloomberg reported. 

Fertitta has a nearly 13 per cent stake in Wynn now, and is the largest shareholder, but whether he keeps that holding remains to be seen. Regulators in states such as Nevada are likely to scrutinise the market concentration that the Caesars deal would bring. Fertitta’s Golden Nugget casinos overlap with Caesars in six markets, and he may be forced to sell some of the properties. 

Fertitta has been a major Republican donor and fundraiser, including for Trump-aligned political groups. He hosted a Trump fundraiser at his Post Oak Hotel in Houston during the 2024 campaign and attended festivities connected to the president’s inauguration, including co-hosting a reception with Mark Zuckerberg and Las Vegas Sands Corp’s controlling shareholder Miriam Adelson, among others.

Fertitta’s empire is unusual not just for its scale, but for its range. Fertitta Automotive includes Bentley, Lotus and Rolls-Royce dealerships. In addition to the high-end Post Oak Hotel, he owns the Montage Laguna Beach, in California, and the Huntting Inn in East Hampton, New York. At the same time, there’s Galveston’s Pleasure Pier and a Holiday Inn Resort.

The strategy of catering to all price points certainly has been lucrative and has allowed Fertitta to enjoy his own luxurious lifestyle. His new superyacht, the Boardwalk, is 384 feet long and a major upgrade from his previous 251-foot yacht. The new vessel reportedly includes two helipads, two swimming pools and a jacuzzi. He also took delivery of a new Gulfstream G700.

The Houston Rockets, which Fertitta acquired at what was at the time a record price for an NBA franchise, are now valued at about  US$5.5 billion by sports media firm Sportico, more than twice what he initially paid. BLOOMBERG