Reports: Caesars offered WSOP and Vegas property to PokerStars
Forbes reports that Caesars exec approached Stars counterpart in February to sell it Rio Casino and online WSOP brand.
A senior Caesars Entertainment executive allegedly contacted a PokerStars last month to propose that the world’s largest online poker company buy one of its Las Vegas casino properties and its flagship interactive WSOP brand, US magazine Forbes has reported this afternoon.
In a statement released less than 24 hours after the American Gaming Association (AGA) “ of which Caesars is a prominent member “ publically called upon US regulators to block PokerStars from obtaining licensure in New Jersey in line with its bid to acquire a casino there, Stars spokesperson Eric Hollreiser claimed “certain assets” were made available to the company for acquisition.
“Caesars Entertainment approached PokerStars and offered to sell us certain assets, such as the Rio Casino in Las Vegas. Caesars suggested that this acquisition would give us a better relationship with Caesars and would help PokerStars gain a license in Nevada,” Hollreiser told Forbes.
“PokerStars declined the offer because we had no plans to acquire another casino in the near term,” he added.
Stars is currently waiting to hear whether it will receive an interim casino operator licence which would allow it to complete the acquisition of The Atlantic Club Casino in New Jersey, a result the AGA has said would “send a damaging message to the world of gaming, and to the world beyond gaming”.
The fact Caesars’ WSOP assets were for sale is more surprising given that the casino company has confirmed plans for it to be the primary brand for its US-facing online poker offering.
Caesars Interactive CEO Mitch Garber told eGR NA in February: “Yes, at a bare minimum that is absolutely the plan. WSOP is certainly our strongest poker brand. But we have the flexibility and the luxury of owning other hotels and other brands and if it makes sense to offer those brands, then we will do it. There may be room for a secondary poker brand on the same platform.”
It could however make sense for Caesars to cash in on some of its prized assets. The company is reportedly laden with $20bn in long-term debt, the highest in the casino industry. If reports in the US media are true this could lead to the interactive business being spun off as a separate public company, a move recommended by US ratings agency Fitch which claimed it should “extract value out of interactive and not risk the entity being pulled into the restructuring proceedings”.
Caesars declined to comment on the story.