In accordance with the Master Lease Agreement between the two companies, VICI will receive 75% of the fee while Caesars will receive the remaining 25%.

Caesars will continue to operate the property until the end of 2020 through a short-term lease agreement with CAI.

CAI will begin redevelopment of the property into a non-gaming hotel in 2021.

The agreement is subject to the closing of the Eldorado-Caesars merger, regulatory approvals and other customary closing conditions.

Tony Rodio, CEO of Caesars Entertainment, said: “We recognise the long legacy of Harrah’s in Reno, where the brand began 82 years ago, and our role in the community.

“We are pleased the buyer is committed to the community and supports the redevelopment of this wonderful asset.

“We have worked closely with the buyer to provide a reasonable closure plan that allows our great staff in Reno ample time to secure their next jobs.”

In June last year, VICI also entered into a Non-CPV Master Lease agreement with Eldorado Resorts ahead of its planned merger with Caesars.

Through the $3.2bn deal, VICI acquired Harrah’s New Orleans, Harrah’s Laughlin and Harrah’s Atlantic City.