Caesars sells 50% of its Online Casino and Poker Subsiduary

Caesars sells 50% of its Online Casino and Poker Subsiduary

2012-09-14

Caesars Entertainment has reportedly sold 50% of its subsidiary that deals with interactive gaming (online casino and poker operations) for $60.8 million.

According to documents that have been filed with the Securities and Exchange Commission, the buyer is Rock Gaming, which happens to be a partner in two Ohio casinos with the company, and which also has an option to purchase $19.2 million worth of interest in Caesars Interactive.

So how far reaching is Montreal-based Caesars Interactive? Well, it operates the World Series of Poker, for one thing. That is a very powerful and significant brand. There is also a working arrangement in place with 888 Holdings for equipment and software to operate the websites Caesars Interactive is involved with.

That actually turned out to be something of a landmark deal, as Nevada’s regulators had never before approved a deal taking place between one of its state licensees in the area of land-based gaming and an online operator that was based out of the country.

Caesars and Rock Gaming are also aiming for a deal to open a casino in Baltimore that will house slot machine games.

Significantly, Rock Gaming is owned by Dan Gilbert, who is not only the founder of Quicken Loans, but also the current owner of the NBA’s Cleveland Cavaliers. Gilbert gained infamy when he went public with his disdain for the loss of basketball superstar LeBron James to Miami, prompting much criticism. His involvement with Rock Gaming, along with other NBA owners like the Maloof family (Sacramento Kings), marks a more lenient attitude on the part of professional sports leagues toward owners who are also gaming operators.

Caesars is a limited partner in Gilbert’s two casinos in Ohio, assuming the management role at Horseshoe casinos in both Cleveland and Cincinnati. The Cleveland facility is expected to open next month.
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