New York (CNN Business) Eldorado Resorts is buying Caesars Entertainment to create the largest gaming company in the United States.

Eldorado Resorts ERI said Monday it has agreed to buy its larger rival in a cash and stock deal worth $17.3 billion, which includes Caesar's mountain of debt. The announcement comes three months after billionaire investor Carl Icahn joined Caesars' board and pushed for a sale of the company.

Caesars Palace in Las Vegas might soon have a new owner.

Caesars is already one of the largest casino businesses in the world. It owns some of Las Vegas' most recognizable properties including Caesars Palace and the Flamingo. It also owns the Harrah's brand, which has nearly two dozen resorts and casinos in the United States.

But it has been in and out of financial trouble over the past decade. Part of the company filed for bankruptcy in 2015, and it holds nearly $9 billion in debt — more than the company's roughly $7 billion market value.

Caesars CZR almost 30% above its Friday close of $9.99 per share. Caesars' stock jumped 16% in premarket trading, while Eldorado's stock slumped nearly 7%. Eldorado will buyfor $12.75 a share, which isalmost 30% above its Friday close of $9.99 per share. Caesars' stock jumped 16% in premarket trading, while Eldorado's stock slumped nearly 7%.

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