Possible Sale of Caesar's Online Stirs Controversy

Published Tuesday, May 17, 2016 - Online-Casinos.com
Possible Sale of Caesar's Online Stirs Controversy

The online gambling industry has been watching the close relationship between earth bound casinos and the virtual equivalent ever since internet betting became popular. There have been a number of situations where the online gambling divisions of old school operators have proved to be more profitable than expected.

A recent media posting regarding the possible sale of the interactive subsidiary of the icon brand Caesars Entertainment is suggesting the trend to online casinos and poker rooms has made its mark. Caesars Entertainment Corp. is struggling to stay upright. Caesars Acquisition Company was formed to make an equity investment in Caesars Growth Partners, LLC (CGP), a joint venture between CAC and Caesars Entertainment Corporation. All the fancy financial footwork still has the company making risky bets.

Caesars Interactive Entertainment, Inc. is one of the largest online, mobile and social gaming companies operating in regulated jurisdictions and is focused on casino entertainment as a subsidiary of Caesars Growth Partners. Launched in May of 2009 the online gambling division has shown significant traction headed up by former Party Poker CEO Mitch Garber. The company reported $800 million in sales combined with $280 million in earnings in 2015. Caesars Interactive Entertainment operates Playtika social and mobile brands Slotomania, Bingo Blitz and the online poker tournament WSOP.com including CEC digital properties Caesars’ Bingo and Casino.

CIE assets have been kept independent from Caesars Entertainment and its huge debt load with the division reportedly now a contentious issue between Caesars Entertainment and its creditors. Bondholders say that Caesars Entertainment’s complicated group structure has made the CIE valuable assets unattainable in the firm’s restructuring process. There is interest in the division which could yield its $ 4 Billion USD evaluation with media companies looking for established market leaders.

New York based investment banking firm Raine Group has been retained to evaluate the proposals for Caesar’s online gambling division.

 

 

 

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