Caesars Sells ‘Non-Core’ Assets As Digital Grows

Caesars confirmed the sale of two “non-core” assets along with solid digital growth on Tuesday’s earnings call.

The operator finalized the sale of the World Series of Poker, the industry’s longest-running tournament series, to NSUS Group, which owns GGPoker.

Caesars also sold the LINQ Promenade, a stretch of restaurants and other attractions centrally located on the Las Vegas strip.

Caesars sports betting, iGaming grow

The land-based casino operator is seeing positive momentum in its digital business, with a record quarterly adjusted EBITDA of $52 million in the quarter, up from $2 million last year.

Eric Hession, president of Caesars sports and online gaming, said sports net revenue was up 36% year over year. That was mostly due to increased hold (8.6% versus 6.5%). Caesars operates in 32 North American jurisdictions.

The company reported heftier growth of 83% in iGaming, driven by its standalone Caesars Palace app.

WSOP sold for $500M

NSUS paid $500 million for the storied poker franchise. Caesars receives $250 million up front, with the other $250 million accounted for via a promissory note due five years after the transaction’s close. The sale was initially announced in August.

The WSOP dates back to 1970 when it started at Binion’s Horseshoe. Eventually, it outgrew the venue, with new owner Harrah’s (later rebranded to Caesars) moving the tournament to the Rio in 2005. From there, it eventually moved to Bally’s (now rebranded to Horseshoe) and Paris in 2022.

Caesars retained the right to continue hosting the WSOP for the next 20 years.

Online poker implications

GGPoker has long been thought to be seeking inroads into the legal US market.

According to the presser, nothing about the current state of the US online poker landscape will change:

[Caesars] will receive a license from NSUS to continue operating its recently upgraded WSOP Online real-money poker business in Nevada, New Jersey, Michigan, and Pennsylvania for the foreseeable future but will otherwise be restricted from operating online peer-to-peer real-money poker operations for a specified period of time and subject to certain exceptions.

The WSOP frequently hosts online poker events that award bracelets and WSOP Circuit rings.

With further WSOP expansion now blocked — albeit in a landscape where online poker hasn’t gained a lot of legislative momentum — industry eyes will be on whether GGPoker will now introduce its product stateside.

Caesars gets $275M for LINQ Promenade

Caesars also sold the LINQ Promenade to a joint venture between TPG Real Estate and Investment Management Platform of Acadia Realty Trust. Expected to close in Q4, the sale will bring another $275 million to Caesars.

Located prominently between Harrah’s and Flamingo in the center of the Las Vegas strip, LINQ Promenade houses a row of restaurants and bars.

It is also home to the High Roller Wheel, a popular attraction that allows customers to ride a massive, slowly spinning wheel with views of the Las Vegas Strip. The attraction is not part of the sale.