The deal Monday puts about 60 casinos and resorts in 16 states under a single name.
Eldorado will pay $8.40 per share in cash and 0.0899 shares of Eldorado stock for each Caesars share, or $12.75 per share.
The combined business will be called Caesars and its shares will be traded on the Nasdaq stock market.
Shareholders of Eldorado Resorts Inc. will hold about 51% of the company's outstanding stock, with Caesars Entertainment Inc. shareholders holding the remaining and 49%.
The deal is targeted to close in the first half of next year if approved by gaming regulators and shareholders.
(Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)