Harrah’s Entertainment is in trouble. Bankruptcy is looming and gaming industry experts say that the casino giant will have to sell off a large portion of assets to relieve cash flow problems. Online casino operators are keeping their fingers crossed that brand rights to the World Series Poker will be on the list of assets being sold.
The World Series of Poker brand has been Harrah’s for a while now (since Harrah’s bought Binion’s just to acquire the rights to the world’s top poker tournament). But the online rights to WSOP have never been exercised. Harrah’s has always planned to set up online casinos – and would still love to do so after the UIGEA is repealed – but gaming experts are wondering if they’ll ever get the chance. Financial problems abound and selling the rights to World Series of Poker may be one of their biggest chances at staying afloat.
There is already wide speculation that the Rio All-Suite Hotel and Casino in Las Vegas will be on the sale block soon. And selling the online casino games license for World Series of Poker would keep Harrah’s from having to close additional hotel-casinos.
Online casino sites are hungry to carry the World Series of Poker logo. It’s the best-known name in the entire casino business – and the company fortunate enough to acquire the rights would benefit enormously from the name. The bidding war might also be intense because online poker sites will want to block other sites from using the brand against them.
If Harrah’s earnings continue to spiral downward, the sale of their online casino betting license may come sooner rather than later. Their need to convert assets into cash may outweigh their desire to hold onto the World Series of Poker brand themselves. The company reported over a $4 billion loss last quarter alone.
