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.