Caesars Entertainment Closes Sale of World Series of Poker® Brand to NSUS Group for US$500 million

Rhea-AI Summary

Caesars Entertainment (NASDAQ: CZR) has completed the sale of its World Series of Poker® (WSOP) brand to NSUS Group for US$500 million, comprising $250 million in cash and a $250 million promissory note due in five years. Caesars retains the right to host the flagship WSOP tournament in Las Vegas for 20 years and maintains its WSOP Online operations in Nevada, New Jersey, Michigan, and Pennsylvania. Brick-and-mortar poker rooms will continue WSOP branding, with Caesars venues maintaining preferential rights for WSOP Circuit events. Key WSOP executives, including Ty Stewart as CEO, Gregory Chochon as COO, and Erik Eidissen as Communications Manager, will transition to NSUS.

Positive

• Received $250 million in immediate cash proceeds
• Secured additional $250 million via promissory note
• Retained rights to host flagship WSOP tournament for 20 years
• Maintained WSOP Online operations in four key states
• Preserved WSOP branding for brick-and-mortar poker rooms

Negative

• Restricted from operating online peer-to-peer real-money poker operations in certain markets
• Loss of full ownership of valuable WSOP intellectual property

Insights

Financial Analyst

The $500 million WSOP brand sale represents a significant strategic move for Caesars Entertainment, combining immediate cash flow with future revenue streams. The deal structure is particularly noteworthy - $250 million in immediate cash improves Caesars' liquidity position, while the $250 million promissory note provides additional future value. The 20-year retention rights for hosting the flagship tournament and continued online operations in key states preserve important revenue streams.

The deal effectively monetizes the WSOP intellectual property while maintaining operational benefits. This transaction helps Caesars reduce debt while retaining significant operational control and revenue-generating capabilities. The structured approach, combining upfront cash with deferred payment and operational rights, demonstrates sophisticated financial engineering that benefits both near-term balance sheet health and long-term strategic interests.

Gaming Industry Analyst

This transaction marks a pivotal shift in the poker industry landscape. While Caesars maintains important operational control through the 20-year hosting rights and continued online presence in major markets, NSUS gains a prestigious brand with global recognition. The retention of key WSOP executives, including Ty Stewart as CEO of the WSOP subsidiary, ensures operational continuity and expertise transfer.

The deal's structure cleverly balances brand monetization with operational sustainability. Caesars' continued rights to WSOP branding in brick-and-mortar poker rooms and preferential access to Circuit events maintain their position in the live poker ecosystem. The temporary restriction on online peer-to-peer poker operations suggests a strategic pivot in Caesars' digital gaming focus while securing significant value for the brand.

TORONTO & LAS VEGAS--(BUSINESS WIRE)-- Caesars Entertainment, Inc. (NASDAQ: CZR) (“Caesars”) today announced the closing of the previously announced sale of its intellectual property rights for the World Series of Poker^® (“WSOP”) brand to NSUS Group Inc. (“NSUS”). As previously disclosed, the transaction includes US$250 million in cash and a $250 million promissory note due five years after the transaction’s closing secured by the WSOP intellectual property assets being sold.

Caesars retains the right from NSUS to host the flagship WSOP live tournament series at its Las Vegas casinos for the next 20 years and 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. In addition, brick-and-mortar poker rooms currently operated by Caesars will continue to feature WSOP branding, and Caesars destinations will continue to enjoy preferential rights to host live WSOP Circuit events going forward.

Concurrent to the transaction, several long-time WSOP executives will transition to key leadership roles within the NSUS team. Ty Stewart will serve as Chief Executive Officer of the newly formed WSOP subsidiary, while Gregory Chochon has accepted the position of Chief Operating Officer. Erik Eidissen also joins as Communications Manager. With more than 30 years of combined experience managing the WSOP brand, these employees will lead the next phase of growth and integration under new ownership.

About Caesars Entertainment, Inc.

Caesars Entertainment, Inc. (NASDAQ: CZR) is the largest casino-entertainment Company in the U.S. and one of the world’s most diversified casino-entertainment providers. Since its beginning in Reno, NV, in 1937, Caesars Entertainment, Inc. has grown through development of new resorts, expansions and acquisitions. Caesars Entertainment, Inc.’s resorts operate primarily under the Caesars®, Harrah’s®, Horseshoe®, and Eldorado® brand names. Caesars Entertainment, Inc. offers diversified gaming, entertainment and hospitality amenities, one-of-a-kind destinations, and a full suite of mobile and online gaming and sports betting experiences. All tied to its industry-leading Caesars Rewards loyalty program, the Company focuses on building value with its guests through a unique combination of impeccable service, operational excellence and technology leadership. Caesars is committed to its employees, suppliers, communities and the environment through its PEOPLE PLANET PLAY framework. Know When To Stop Before You Start.® Gambling Problem? Call or text 1-800-GAMBLER. For more information, please visit www.caesars.com/corporate.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words "anticipates," "assumes," "believes," "estimates," "expects," "guidance," "intends," "plans," "projects," and similar expressions that do not relate to historical matters. Forward-looking statements include all statements other than statements of historical fact, including statements regarding market performance and expected timing of consummation of operations. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors which are, in some cases, beyond Caesars' control and could materially affect actual results, performance, or achievements. Although Caesars believes that in making such forward-looking statements its expectations are based upon reasonable assumptions, such forward-looking statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. Caesars cannot assure you that the assumptions upon which these statements are based will prove to have been correct. Caesars does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as may be required by applicable law.

About World Series of Poker

Part of Caesars Entertainment's Caesars Digital operations, the World Series of Poker® is the largest, richest and most prestigious gaming event in the world, having awarded more than $4 billion in prize money and awarding prestigious gold bracelets, globally recognized as the sport's most coveted prize. Featuring a comprehensive slate of tournaments in every major poker variation, the WSOP is poker's longest-running tournament dating back to 1970. In 2024, the event attracted 229,553 entrants to Paris Las Vegas and Horseshoe Las Vegas and awarded more than $438 million in prize money – both all-time records for the series. In addition, the WSOP has formed groundbreaking alliances in broadcasting, digital media and corporate sponsorships, while successfully expanding the brand internationally. Today, in addition to the flagship World Series of Poker in Las Vegas, the WSOP portfolio of events includes approximately 40 WSOP Circuit Events annually across five continents, WSOP Europe (since 2007) and WSOP Paradise (since 2023.) All WSOP events are subject to the then-current and applicable WSOP tournament rules. For more information, please visit www.wsop.com.

About NSUS Group

NSUS, pronounced "Answers,” is at the forefront of business consultancy to leading firms within the iGaming space. Specializing in investments, consulting and marketing, NSUS has been an integral part of the launch of several highly successful ventures, such as GGPoker, the World’s Biggest Poker Room, and ClubGG. These brands are the market leaders in the iGaming industry, providing fun and entertainment to millions of players around the world.

https://www.nsusgroup.com/

About GGPoker

GGPoker is the World’s Biggest Poker Room, with a global player base. It offers a range of innovative games and features such as the patented Rush & Cash poker, All-In or Fold, Flip & Go, Spin & Gold, Mystery Battle Royale, GGCare & GGCheers, integrated staking platform, SnapCam video messaging, PokerCraft, and Smart HUD, all designed to enhance gaming experiences and make poker more fun than ever.

In 2020, GGPoker hosted the world record-breaking WSOP Online main event and in 2022 became the world’s largest online poker room. GGPoker sent over 1,000 players to WSOP Paradise at the Atlantis Paradise Island in the Bahamas in 2023, while more than 1,100 GGPoker players took their seats in the WSOP 2024 Main Event, which smashed attendance records for the second year running. GGPoker was named Poker Operator of the Year at the EGR Operator Awards 2024.

Find out more about GGPoker at GGPoker.com and on Facebook, X and Reddit.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241029176402/en/

Investor Relations:

Brian Agnew, bagnew@caesars.com

Charise Crumbley, ccrumbley@caesars.com

800-318-0047

Media Relations:

Kate Whiteley, kwhiteley@caesars.com

Brad Harwood, bharwood@caesars.com

GGPoker, press@ggpoker.com

Source: Caesars Entertainment, Inc.

FAQ

How much did Caesars Entertainment (CZR) sell the WSOP brand for?

Caesars Entertainment sold the WSOP brand to NSUS Group for US$500 million, consisting of $250 million in cash and a $250 million promissory note due in five years.

Will Caesars (CZR) continue to host WSOP tournaments after the sale?

Yes, Caesars retained the right to host the flagship WSOP tournament series at its Las Vegas casinos for the next 20 years.

Can Caesars (CZR) continue its WSOP Online operations after the sale?

Yes, Caesars will continue operating WSOP Online in Nevada, New Jersey, Michigan, and Pennsylvania, but will be restricted from operating online peer-to-peer real-money poker in other markets.

Who will lead the WSOP brand under NSUS Group ownership?

Ty Stewart will serve as CEO, Gregory Chochon as COO, and Erik Eidissen as Communications Manager of the newly formed WSOP subsidiary under NSUS Group.