Caesars Entertainment Sells World Series of Poker to NSUS Group for $500 Million

In a move that has garnered significant attention within the gaming community, Caesars Entertainment has finalized the sale of the World Series of Poker (WSOP) brand to NSUS Group Inc., the parent company of the renowned online poker operator GGPoker. The transaction, valued at $500 million, involves an upfront cash payment of $250 million and a deferred payment of another $250 million due in five years.

A Fruitful Partnership

GGPoker and WSOP have a rich history of collaboration. Over the years, GGPoker has facilitated numerous online satellite qualifiers for major WSOP events, including those in Las Vegas and the WSOP Paradise series. During the pandemic, GGPoker hosted a groundbreaking international online WSOP tournament series, which awarded 54 coveted bracelets. Eric Hession, President of Caesars Digital, emphasized the success of this partnership, noting its pivotal role in the growth and popularity of the WSOP brand.

The agreement between Caesars and NSUS ensures that the iconic live WSOP events will remain a staple at Caesars Las Vegas properties. The summer series, a highlight of the poker calendar, will continue to be hosted at these venues, along with regional World Series of Poker Circuit events. This continuity guarantees that players will still enjoy the same high-quality live tournament experiences that have become synonymous with the WSOP brand.

NSUS Group, under the leadership of CEO Michael Kim, is set to take the WSOP brand to new heights. Leveraging GGPoker’s state-of-the-art technology and deep industry expertise, NSUS plans to innovate and expand the WSOP’s global footprint. Michael Kim expressed his excitement about this new chapter, highlighting NSUS’s loyalty to providing a safe, seamless, and enhanced poker experience for players around the world.

Caesars Digital will maintain its presence in the U.S. online poker market, continuing to operate WSOP Online poker in Michigan, Nevada, New Jersey, and Pennsylvania. The deal, however, places restrictions on Caesars’ ability to expand into new online poker states for a specified period. The WSOP-branded sites, which run on the 888 platform, will remain under Caesars’ control, ensuring stability for current players. In Ontario, GGPoker will continue to power the WSOP.com platform.

GGPoker’s Global Influence

GGPoker has established itself as the largest online poker site globally, with a significant base outside the United States. Despite acquiring a supplier license in Pennsylvania, GGPoker has not yet launched operations there. The platform has outpaced PokerStars in of cash game player pools, although it has faced regulatory challenges, such as a fine from the UK Gambling Commission for issues related to anti-money laundering and self-exclusion protocols.

This sale aligns with Caesars Entertainment’s broader strategy to divest non-core business assets. During a recent earnings call, Eric Hession discussed the company’s approach, noting that while online poker contributed to overall performance, it was not a major revenue driver. The WSOP brand, however, has consistently generated annual revenues between $20 million and $25 million from both royalty streams and land-based casino operations.

With NSUS Group at the helm, the WSOP brand is poised for significant growth and innovation. The potential for GGPoker to expand the online poker business is substantial, potentially leading to the introduction of WSOP-branded rooms on the GGPoker platform. This strategic transition marks the beginning of an exciting era for the WSOP, promising enhanced experiences and broader reach for poker enthusiasts worldwide.

Source:

”Caesars sells WSOP brand for $500 million, keeps live events”, reviewjournal.com, August 01, 2024.

”Caesars sells WSOP to GGPoker in deal valued at $500M”, sbcamericas.com, August 01, 2024.