Hospitality billionaire Tilman Fertitta’s firm will buy Caesars Entertainment in a $17.6 billion deal, the companies said Thursday, expanding his leisure empire.

The deal, which will take one of the Las Vegas Strip’s most prized casino operators private, includes about $11.9 billion in assumed debt, the companies said.

Shares of the casino operator were up 1.6% and have gained about 16% since the deal was first reported in February.

Caesars faces mounting pressure as fewer visitors to Las Vegas — its core market — dent revenue at resorts, hotels and casinos, while its online betting arm trails larger rivals like FanDuel and DraftKings and faces growing competition from prediction markets.

Fertitta, the US ambassador to Italy and San Marino and owner of Fertitta Entertainment, offered $31 per share — a nearly 50% premium to the stock’s closing price before the deal was first reported and about 8% to its last close on Wednesday.

Caesars merged with smaller rival Eldorado Resorts in 2020 to form one of the biggest casino and entertainment companies in the US

The group runs more than 50 casinos across North America — including Caesars Palace, Harrah’s and Eldorado — and a retail and online sports-betting platform.

Meanwhile, Fertitta Entertainment owns the Golden Nugget Hotel and Casinos, the NBA’s Houston Rockets and — through its restaurant and hospitality arm — more than 600 properties across 15 countries.

If completed, the acquisition would add Caesars’ vast footprint to Fertitta’s entertainment and hospitality empire, with the combined casino holdings likely to become a key focus for regulators.

TD Cowen analyst Lance Vitanza, however, said, “The deal appears more likely than not to receive the necessary approvals given Fertitta’s role in the current administration.”

Fertitta donated actively to President Trump’s 2024 campaign.

Caesars’ top executives, including CEO Tom Reeg and CFO Bret Yunker, are expected to stay on. The deal includes a “go-shop” period through July 11, allowing Caesars to weigh alternative proposals.

Macquarie analyst Chad Beynon views the likelihood of a competing bid as low, citing a robust premium, deal size and regulatory complexity.

Morningstar’s Dan Wasiolek agreed, noting that peers Las Vegas Sands, MGM and Wynn  each hold only a few billion in cash and face heavy capex commitments to expand in existing and new markets.