Caesars Entertainment Thursday announced the sale of its intellectual-property rights for the World Series of Poker brand to NSUS Group, Inc., for $500 million.
NSUS is an igaming investment group known for launching several ventures, including the online poker room, GGPoker. The transaction comprises $250 million in cash and a $250 million promissory note, due five years after the transaction’s closing date and secured by the WSOP asset.
As a part of the transaction, Caesars retains the right to continue hosting the WSOP’s flagship live-tournament series at its Las Vegas casinos for the next 20 years. In addition, brick-and-mortar poker rooms currently operated by Caesars will continue to feature WSOP branding and Caesars destinations will receive preferential rights to host live WSOP Circuit events.
NSUS will also issue Caesars Digital a license to continue operating its recently upgraded WSOP Online 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.
“We’ve enjoyed a longstanding and successful partnership with GGPoker that has helped spur the growth of the WSOP brand,” said Eric Hession, president of Caesars Digital. “We can’t wait to see what NSUS has in store for growing the WSOP’s legacy in poker.”
The sale is subject to regulatory approvals and other conditions and is expected to close prior to the end of 2024.
“After collaborating with Caesars Entertainment for years, NSUS Group announces their new role in leading the World Series of Poker, the world’s most renowned poker brand,” said Michael Kim, CEO of NSUS Group Inc. “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. Joseph Greff, an analyst with J.P. Morgan sent a note to investors after the sale was announced outlining Caesars’ strategy.
“This is a first step of selling less than core assets (at a strong multiple to boot, 20x to 25x estimated current-year EBITDA) to help reduce absolute leverage and leverage ratios,” Greff said.
Kirkland & Ellis LLP provided transactional counsel and Latham & Watkins LLP acted as finance counsel to Caesars, while NSUS was represented by Greenberg Traurig, LLP.
