WSOP Venue May Shift Again
Las Vegas is abuzz with rumors that Harrah’s have put the Rio All-Suite Hotel and Casino on the block. If the property actually gets sold the World Series of Poker (WSOP) would have to shift venue again. The WSOP was launched in 1970 at the Horseshoe Casino owned by Benny Binion. For 34 years the events were held there. When Harrah’s bought the Horseshoe Casino along with the rights to WSOP, they shifted the events to the Rio. That must have been a heart wrenching moment for many, especially old times like Doyle Brunson. But it was essential for the growth of WSOP.
The Rio has seemingly unlimited parking space and convention center space both of which contributed to the growth in participation. But it has disadvantages as well. It is not on the Strip, which puts it some distance away from the center of action in Las Vegas. Also the Rio is 20 years old and that classifies it as ancient in Las Vegas real estate perception. Though Harrah’ Entertainment has refused to comment on the correctness or otherwise of the rumors, two questions are being asked. Poker fans are mulling over the likely next venue for WSOP and real estate watchers are figuring out the likely sale price.
WSOP will have to be on Harrah’s turf. Caesars Palace is the flagship casino of Harrah’s on the Strip and that is one option. However, the most talked about option is Planet Hollywood, which Harrah’s purchased only recently. In fact the rumors hint that Harrah’s want to generate cash by selling the Rio so that they can focus strategically on running Planet Hollywood. Other Harrah’s properties that have been mentioned as possible WSOP venues are Paris, Bally’s and the Flamingo. Harrah’s could even split WSOP over two or three venues. In all Harrah’s has nine properties on the Strip.
Harrah’s had bought the 89 acre Rio All-Suite Hotel and Casino in 1999 for $888 million. Bloomberg, which was the first to publish the rumor, has also stated that the bids Harrah’s has received so far are around $500 million. Barbara Cappaert, a bond analyst with KDP Investment Advisors, estimated the Rio’s cash flow between $80 million and $92 million. Real estate analysts are valuing properties on the Strip at seven times cash flow. This would put the going price between $560 million and $640 million.
Most Popular Articles
