PENN - Why Casino Stocks Jumped Big on Tuesday
Shares of some of the largest U.S. casino companies jumped in trading Tuesday on relatively positive deal-related news. The stock of Eldorado Resorts (NASDAQ: ERI) rose as much as 26.4% before closing up 19.5%. Caesars Entertainment (NASDAQ: CZR) gained 17% before settling up 5.3%. Finally, shares of Penn National Gaming (NASDAQ: PENN) climbed 15.8% and closed up 8.5% for the day.
Eldorado is in the process of buying Caesars Entertainment, and CNBC reported today that the deal is progressing as planned. The closing has been pushed out to June, rather than the original April, but both companies insist the merger will happen. They were even quoted saying that the companies have the liquidity to last for over a year if the deal gets pushed out again.
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