Caesars To Sell WSOP Brand to GGPoker Owner

Article by : Erik Gibbs Aug 3, 2024

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Caesars Entertainment has announced the sale of the World Series of Poker (WSOP) brand and intellectual property rights for $500 million to an investment group specializing in online gaming. Despite this sale, Caesars will continue to host the renowned poker tournament for the next two decades.

This transaction follows closely on the heels of a statement from Caesars’ CEO Tom Reeg. He indicated that the company did not plan to sell any operating casino assets but was open to trading “non-core, nonoperating casino assets,” though he did not explicitly mention the WSOP at that time.

During Caesars’ second-quarter earnings conference call, Reeg discussed potential sales, mentioning non-core, nonoperating casino assets that could be traded at a favorable multiple, hinting at further strategic moves by the company. On the other hand, JP Morgan gaming analyst Joe Greff described the WSOP sale as a preliminary step in divesting less essential assets to help reduce Caesars’ substantial long-term debt, which stands at $12.4 billion.

Caesars will retain the rights to host the annual WSOP live tournament every summer at the Horseshoe Las Vegas for the next two decades. Additionally, Caesars Digital will maintain a license to operate its online version of the WSOP in the Silver State.

Since acquiring the WSOP brand in 2004 from the Binion family, Caesars has expanded the event from its original downtown Las Vegas setting to a series of year-round circuit events held at Caesars properties both in the US and globally. The company also launched an online version of the WSOP, further broadening its reach.

The investment group NSUS Group, known for its ventures in online gaming, including the online poker room GGPoker, which hosts WSOP.com, will pay $250 million in cash and a $250 million promissory note. The note, secured by the WSOP intellectual property assets, is due five years after the transaction closes, which is expected by the end of this year. NSUS operates out of Toronto and has offices in Europe and Asia.

Eric Hession, president of Caesars Digital, expressed satisfaction with the partnership between Caesars and GGPoker, noting its role in the growth of the WSOP brand. He emphasized that the brand continues to evolve.

NSUS CEO Michael Kim expressed his ambition to use GGPoker’s technology to expand the WSOP’s online presence around the world, intending to place the brand at the forefront of poker’s growth.

Over time, the WSOP has grown from a modest downtown event into a six-week tournament with numerous events, eventually moving from Binion’s to the Rio Las Vegas. In 2023, Caesars rebranded Bally’s Las Vegas as Horseshoe Las Vegas, relocating the tournament to the Strip and creating an extensive poker room in the convention space linking the resort with Paris Las Vegas.

The recently concluded 2024 WSOP featured 99 live events and awarded over $437 million in prize money. The $10,000-buy-in No Limit Hold’em Main Event set a new attendance record with 10,112 players, with professional poker player Jonathan Tamayo taking home the $10 million grand prize.