By ADAM GOLDMAN
ASSOCIATED PRESS
LAS VEGAS (AP) - The popular World Series of Poker will take place this year but where the cards are dealt remains undecided, new owner Harrah's Entertainment said Tuesday.
"It is our intent to make sure the World Series of Poker continues," Harrah's spokesman David Strow said. "It's just so early in the process to speculate where the World Series of Poker will be held."
Harrah's secured the rights to the world's premier poker event when it signed an agreement Monday to buy the storied Binion's Horseshoe Hotel & Casino for about $50 million, according to a source familiar with the deal.
Harrah's officials declined to discuss the terms of the agreement. Efforts to reach Becky Binion Behnen, majority owner of the Horseshoe Club Operating Co. that operates Binion's, were unsuccessful Tuesday.
Harrah's also acquired the casino's legendary name in Nevada and agreed to assume the downtown Las Vegas property's debts, which forced the casino to close Saturday. Strow said getting the poker tournament was an important part of the deal.
"The poker tournament is extremely valuable," he said. "We certainly intend to take full advantage of this event."
The tournament has helped drive enormous interest in poker all over the country and world. Last year, a record-setting 839 people played in the tournament, with accountant Chris Moneymaker winning the event and $2.5 million.
Barry Shulman, owner of CardPlayer Magazine and cardplayer.com, said the World Series of Poker was a "fabulously under-exploited asset."
In Harrah's hands, Shulman said the tournament could reach new financial heights.
"If they have the World Series and they run it the way it ought to be run, it will enhance it big time," he said. "It is by far the biggest single event in poker. It could be just incredible."
Marc Falcone, a gambling analyst with Deutsche Bank in New York City, said the tournament will generate limited cash for Harrah's.
"Despite its popularity and growth, poker is not a significant contributor to casino revenue," he said.
Falcone added the upside to the deal was getting to use the Horseshoe name in Nevada. Falcone said Harrah's could slap the Horseshoe brand on another casino in Las Vegas, allowing the company to increase its presence.
Harrah's has been after the name since September when it signed a $1.45 billion agreement in September to buy Jack Binion's Horseshoe Gaming Holding Corp., its properties and the Horseshoe name outside Nevada.
"We wanted the rights to the Horseshoe name in Nevada," Strow said. "That was very attractive to us. The Horseshoe brand is one of the most powerful brands in the gaming industry. Nevada is the center of the gaming industry."
Harrah's also took control of a note valued at about $20 million that the Horseshoe Club Operating Co. owed Behnen's brother, Jack Binion.
Attorney Dominic Polizzotto, general counsel for Horseshoe Gaming Holding Corp., said Binion expected that note to be honored.
"We have struck no deal to forgive or release the note," he said, adding that Jack Binion was not part of the negotiations to buy the property."
Gambling experts wondered Tuesday whether Harrah's would hold onto the fading downtown property and whether it would remain part of the gambling giant's portfolio.
"Although there is no certainty that Harrah's will end up with Horseshoe, and at what valuation, we do recognize that it is a good strategic fit which would enhance Harrah's long term growth prospects," said David Anders, a gambling analyst with Merrill Lynch.
One of the last family-owned casinos in Las Vegas, Binion's Horseshoe had been struggling to pay its bills. The Horseshoe Club's downtown assets were listed at $35.6 million, according to Clark County Assessor's Office.
On Friday, U.S. marshals enforced a court order that said the casino had not paid pension and health insurance benefits to about 400 of its union employees. The Internal Revenue Service had also filed two liens against the property totaling $7.5 million.
It's still not clear when the casino will reopen and its estimated 900 employees will return to work.
The sale must approved by the Nevada Gaming Commission.
Chairman Peter Bernhard said: "We'll do everything we can to expedite it."
ASSOCIATED PRESS
LAS VEGAS (AP) - The popular World Series of Poker will take place this year but where the cards are dealt remains undecided, new owner Harrah's Entertainment said Tuesday.
"It is our intent to make sure the World Series of Poker continues," Harrah's spokesman David Strow said. "It's just so early in the process to speculate where the World Series of Poker will be held."
Harrah's secured the rights to the world's premier poker event when it signed an agreement Monday to buy the storied Binion's Horseshoe Hotel & Casino for about $50 million, according to a source familiar with the deal.
Harrah's officials declined to discuss the terms of the agreement. Efforts to reach Becky Binion Behnen, majority owner of the Horseshoe Club Operating Co. that operates Binion's, were unsuccessful Tuesday.
Harrah's also acquired the casino's legendary name in Nevada and agreed to assume the downtown Las Vegas property's debts, which forced the casino to close Saturday. Strow said getting the poker tournament was an important part of the deal.
"The poker tournament is extremely valuable," he said. "We certainly intend to take full advantage of this event."
The tournament has helped drive enormous interest in poker all over the country and world. Last year, a record-setting 839 people played in the tournament, with accountant Chris Moneymaker winning the event and $2.5 million.
Barry Shulman, owner of CardPlayer Magazine and cardplayer.com, said the World Series of Poker was a "fabulously under-exploited asset."
In Harrah's hands, Shulman said the tournament could reach new financial heights.
"If they have the World Series and they run it the way it ought to be run, it will enhance it big time," he said. "It is by far the biggest single event in poker. It could be just incredible."
Marc Falcone, a gambling analyst with Deutsche Bank in New York City, said the tournament will generate limited cash for Harrah's.
"Despite its popularity and growth, poker is not a significant contributor to casino revenue," he said.
Falcone added the upside to the deal was getting to use the Horseshoe name in Nevada. Falcone said Harrah's could slap the Horseshoe brand on another casino in Las Vegas, allowing the company to increase its presence.
Harrah's has been after the name since September when it signed a $1.45 billion agreement in September to buy Jack Binion's Horseshoe Gaming Holding Corp., its properties and the Horseshoe name outside Nevada.
"We wanted the rights to the Horseshoe name in Nevada," Strow said. "That was very attractive to us. The Horseshoe brand is one of the most powerful brands in the gaming industry. Nevada is the center of the gaming industry."
Harrah's also took control of a note valued at about $20 million that the Horseshoe Club Operating Co. owed Behnen's brother, Jack Binion.
Attorney Dominic Polizzotto, general counsel for Horseshoe Gaming Holding Corp., said Binion expected that note to be honored.
"We have struck no deal to forgive or release the note," he said, adding that Jack Binion was not part of the negotiations to buy the property."
Gambling experts wondered Tuesday whether Harrah's would hold onto the fading downtown property and whether it would remain part of the gambling giant's portfolio.
"Although there is no certainty that Harrah's will end up with Horseshoe, and at what valuation, we do recognize that it is a good strategic fit which would enhance Harrah's long term growth prospects," said David Anders, a gambling analyst with Merrill Lynch.
One of the last family-owned casinos in Las Vegas, Binion's Horseshoe had been struggling to pay its bills. The Horseshoe Club's downtown assets were listed at $35.6 million, according to Clark County Assessor's Office.
On Friday, U.S. marshals enforced a court order that said the casino had not paid pension and health insurance benefits to about 400 of its union employees. The Internal Revenue Service had also filed two liens against the property totaling $7.5 million.
It's still not clear when the casino will reopen and its estimated 900 employees will return to work.
The sale must approved by the Nevada Gaming Commission.
Chairman Peter Bernhard said: "We'll do everything we can to expedite it."
