In a game-changing move for the poker industry, Caesars Entertainment has sold the World Series of Poker (WSOP) brand to NSUS Inc., the parent company of online poker leader GGPoker. The deal is worth $500 million, with half of the payment made upfront and the rest due over the next five years.
A Flourishing Partnership
WSOP and GGPoker have shared a strong partnership, with GGPoker serving as a crucial partner in recent years. This collaboration has involved organizing online satellite qualifiers for both the WSOP Las Vegas events and the WSOP Paradise tournaments. During the COVID-19 pandemic, GGPoker stepped up by hosting an international online WSOP tournament series, awarding 54 bracelets and boosting the WSOP brand’s global presence.
Eric Hession, President of Caesars Digital, praised the fruitful collaboration, saying: ”We’ve enjoyed a longstanding and successful partnership with GGPoker that has helped spur the growth of the WSOP brand. This transaction is an exciting step for Caesars as a company and the WSOP brand as it continues to evolve. We can’t wait to see what NSUS has in store for growing the WSOP’s legacy in poker, and we look forward to continuing to deliver an unmatched and familiar experience to poker players going forward.”
WSOP Events to Continue at Caesars Venues
Despite the sale of the WSOP brand, Caesars Entertainment will maintain its involvement with WSOP events. The prestigious summer series will remain at Caesars locations in Las Vegas, and regional properties will continue hosting World Series of Poker Circuit events. This arrangement ensures that the iconic live tournaments stay rooted in their traditional venues, preserving the WSOP’s historical significance in Las Vegas.
Michael Kim, CEO of NSUS Group, expressed excitement about the acquisition, stating: ”After collaborating with Caesars Entertainment for years, NSUS Group, the operators of GGPoker, is thrilled to announce their new role in leading the World Series of Poker, the world’s most renowned poker brand. We will leverage GGPoker’s cutting-edge technology and industry expertise to create an exciting future for WSOP, ensuring players have an increasingly improved, safe, and seamless poker experience. Under the new leadership, NSUS intends to expand WSOP worldwide, positioning it at the forefront of poker’s growth.”
Online Poker Operations and Market Presence
Under the terms of the deal, Caesars Digital will keep running WSOP-branded online poker in Michigan, Nevada, New Jersey, and Pennsylvania, retaining rights to these markets on the 888 platform. However, Caesars is restricted from expanding into new online poker states, such as West Virginia, for a specified period, with certain exceptions.
Earlier in May, Caesars announced the integration of player pools across Nevada, New Jersey, and Michigan and rebranded WSOP.com to WSOP Online. Pennsylvania remains independent, awaiting approval for player pooling with other states. Meanwhile, GGPoker manages WSOP.com in Ontario, a partnership that began in April 2022.
Known for its significant global presence, GGPoker has become the largest online poker site worldwide, surpassing PokerStars in cash game players. Despite its success, GGPoker has faced obstacles, including a nearly $750,000 fine from the UK Gambling Commission in 2022 for anti-money laundering and self-exclusion issues.
Caesars’ Strategic Goals and Financial Impact
The sale aligns with Caesars Entertainment’s strategic focus on selling “non-core” assets, as mentioned in an earnings call. Eric Hession noted that while online poker was profitable, it didn’t significantly affect Caesars’ overall revenue, which was between $20 million and $25 million for the year. GGPoker’s acquisition of WSOP represents a strategic move to boost its online poker offerings and expand the WSOP brand’s global reach.
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.