According to many gaming industry experts, Harrah’s Entertainment may have to sell a number of assets to relieve some liquidity problems and avoid bankruptcy. One of the assets that is expected to end up on the market is the brand rights to the World Series of Poker. If Harrah’s auction the rights, online casino operators are expected to be among the bidders.
Harrah’s has owned the WSSOP brand since it bought Binions in an effort to acquire the tournament. The company has never exercised its rights to run an online poker tournament. The current speculation is that an internet poker room using the logo would enjoy massive successes. Harrah’s have said that they would like to set up their own online casino once the Unlawful Internet Gambling Enforcement Act is repealed, but their current financial situation may force them to sell the online license.
If Harrah’s auction the online license, it would raise cash for them without them having to sell any more bricks and mortar casinos. Currently, it is thought that the Rio All-Suite hotel and casino in Vegas could be sold.
Last financial quarter, Harrah’s reported a loss of over $4 billion. Debt payments on the loans to take the company private are already looming, and the company will have to sell some assets – either online or offline, soon.
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