Caesars Entertainment has announced a definitive agreement to sell its intellectual property rights to the World Series of Poker (WSOP) to NSUS Group Inc., a prominent investment group within the iGaming sector, known for its innovative online poker room, GGPoker.
Caesars Entertainment Announces Sale of WSOP Intellectual Property Rights to NSUS Group
Transaction Details
On Thursday, Caesars Entertainment disclosed that the transaction is valued at $500 million. The deal includes a $250 million cash payment and an additional $250 million in a promissory note due five years after the transaction’s closing date, secured by the WSOP intellectual property assets.
As with similar high-value transactions, this sale is subject to relevant regulatory approvals. The closing of the sale is anticipated to occur before the end of this year.
Legal and Financial Counsel
For this transaction, Caesars Entertainment utilized the financial counsel services of Latham & Watkins LLP and transactional counsel from Kirkland & Ellis LLP. NSUS Group received guidance from Greenberg Traurig, LLP.
Strengthening a Successful Collaboration
Michael Kim, CEO of NSUS Group, expressed his excitement about the new deal, highlighting the successful collaboration with Caesars over the years. He emphasized that this agreement marks a significant moment in the development of the WSOP brand.
Kim stated, “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.” He also mentioned that the agreement aims to expand the WSOP brand globally, ushering in its next chapter of growth.
Eric Hession, president of Caesars Digital, echoed this positive sentiment, noting the long-standing and successful partnership with GGPoker that has significantly boosted the WSOP brand. Hession remarked, “This transaction is an exciting step for Caesars as a company and the WSOP brand as it continues to evolve.”
Future Hosting and Branding Rights
Under the new agreement, Caesars will retain the right to host the WSOP live tournament series at its Las Vegas casinos for the next 20 years. Additionally, Caesars will maintain the WSOP branding in its current poker rooms and keep its preferential rights to host live WSOP Circuit tournaments.
Conclusion: The Transaction
This landmark transaction between Caesars Entertainment and NSUS Group not only underscores the strong partnership between the two companies but also paves the way for the continued growth and global expansion of the WSOP brand. With GGPoker’s advanced technology and industry expertise, the future of the WSOP promises to offer players a superior, secure, and seamless poker experience.
FAQs About Caesars Entertainment’s Sale of WSOP Intellectual Property Rights
1. Who has purchased the WSOP intellectual property rights from Caesars Entertainment?
NSUS Group Inc., known for its online poker room GGPoker, has purchased the WSOP intellectual property rights from Caesars Entertainment.
2. What is the value of the transaction for the WSOP intellectual property rights?
The transaction is valued at $500 million, which includes a $250 million cash payment and a $250 million promissory note due five years after the transaction’s closing date.
3. What are the conditions for the completion of this transaction?
The transaction is subject to relevant regulatory approvals and is expected to close before the end of this year.
4. Which legal firms represented Caesars Entertainment in this transaction?
Caesars Entertainment was represented by Latham & Watkins LLP for financial counsel and Kirkland & Ellis LLP for transactional counsel.
5. Which legal firm provided guidance to NSUS Group in this transaction?
NSUS Group received guidance from Greenberg Traurig, LLP.
6. What rights will Caesars Entertainment retain after the sale?
Caesars will retain the right to host the WSOP live tournament series at its Las Vegas casinos for the next 20 years. It will also maintain WSOP branding in its current poker rooms and keep its preferential rights to host live WSOP Circuit tournaments.
7. What are NSUS Group’s plans for the WSOP brand?
NSUS Group plans to leverage GGPoker’s technology and industry expertise to enhance the WSOP brand, ensuring an improved, safe, and seamless poker experience for players. The agreement aims to expand the WSOP brand globally.
8. What did Michael Kim, CEO of NSUS Group, say about the new deal?
Michael Kim expressed excitement about the deal, highlighting the successful collaboration with Caesars and the opportunity to leverage GGPoker’s technology to create an exciting future for WSOP.
9. What did Eric Hession, president of Caesars Digital, say about the transaction?
Eric Hession noted the long-standing and successful partnership with GGPoker that has boosted the WSOP brand and described the transaction as an exciting step for both Caesars and the WSOP brand as it continues to evolve.
