Is the WSOP for Sale?

Well, the Caesars Interactive Entertainment (CIE) arm connected to it certainly seems to be, a $4billion evaluation receiving several bids according to business sources in the industry, although bankruptcy and pending lawsuits are also in the air.

The Caesars Interactive Entertainment arms holds the World Series of Poker “as well as several fast-growing social and mobile gaming brands like Bingo Blitz and House of Fun”.

In a rather murky and dubious-sounding deal, last year saw Caesars Entertainment Corp (CEC) sell off their CIE arm - “one of the biggest online, mobile and social gaming companies, with annual sales close to $800 million”.

The sale was followed by a bankruptcy filing, and according to marketwatch many bondholders “have criticized moves Caesars made before the filing that put CIE and other valuable assets out of their reach. They have also attacked CIE’s acquisition of World Series of Poker trademark rights.”

In simple terms

According to Reuters, Caesars Entertainment Corp is a 70% plus financial owner of Caesar's Growth Partners LLC which is in turn the holding company for Caesars Acquisition Co.

It’s easier to think of it like this (for me at least, and apologies for dumbing it down!):

1) Caesars A creates companies Caesars B and Caesars C

2) Caesars A sells off the profitable bits to B and C

3) Caesars A then files bankruptcy

4) ???

5) Profit

Step 4 is the real question. What happens there to B and C? Do those invested in Caesars A get a return? It certainly appears as though they tried to.

Reuters added that “A court-ordered examiner said Caesars Entertainment Corp and its private equity backers could be on the hook for up to $5.1 billion in potential damages over a series of corporate deals that a led to an $18 billion bankruptcy protection filing by the casino company's operating unit (CEOC)”.

Who’s buying?

What this actually means for the WSOP brand and tournament is anybody’s guess. The one thing which many in the poker community are worrying about is whether Amaya (who own PokerStars) might get involved, although it seems highly unlikely given the money involved and state licensing considerations. Nevertheless, over on 2+2 the talk has begun.

“Please don't let Amaya buy this too.... Knowing them, the main event would be a $8500+$1500 buyin” wrote ‘easyfnmoney’.

Of the mobile-gaming aspect, he opined:

Continuing with Xanadu’s thoughts:

This, of course, is a stretch of the imagination given that it is not clear what, if anything, is actually on offer or able to be sold. However, legal threats against the bankruptcy don’t necessarily mean that a sale is out of the cards – it would probably just mean that any success in the courts would see a new buyer taking on the debt if it came to that; something not entirely unusual in the business world.

At the moment, all we know for sure is that reports from those who should know are indicating that something owned by Caesars in some form is for sale, unnamed somebodies are interested in buying it, and many others are a bit worried about what it will lead to!