While the gaming industry is familiar with the regulatory scrutiny that often follows mergers and acquisitions, antitrust reviews may be more of a mystery. However, casino executives and in-house counsel should be prepared for antitrust scrutiny when entering into any kind of M&A deal. In this article, the authors outline how the Federal Trade Commission analyzes casino mergers and what operators can do to preemptively assess the antitrust risks of a proposed transaction.
Assessing umbrella pricing incentives
When collusive agreements involve a subset of firms in an industry, they may create the incentive and ability for firms that are not participants in the cartel...