There's been no shortage of coverage of Caesars Entertainment's
One asset that may have some value is the popular World Series of Poker. Analysts are starting to speculate that the series of poker tournaments may be a good asset to sell, and frankly, it might be one of the only assets worth selling. But this raises a conundrum similar to the one that MGM Resorts
If the long-term prospects of a business are strong, it may be (think Las Vegas Sands and Wynn Resorts in 2008), but if the long-term prospects are dim, you're just kicking the can down the road.
The stranglehold of debt
The driver of asset sales would be the company's $19.9 billion pile of debt, an outstanding issue that resulted in Fitch Ratings lowering its outlook on the company from stable to negative. Investors may be looking for more yield in the future when debt maturities come due, especially with regional gaming on the decline at Caesars' resorts.
The problem for Caesars is that the World Series of Poker is one of the few assets worth holding on to. The World Series of Poker is one of the best brands in poker, and if gaming is legalized on a national level, it would undoubtedly be one of the big winners. MGM Resorts, with its partnership with Boyd Gaming
One of the roadblocks is that if the Republicans win the election, Las Vegas Sands CEO and majority owner Sheldon Adelson has the party in his pocket. He's had private meetings with top Romney officials, including Paul Ryan, and I seriously doubt online gaming would pass while his checkbook is out, given his aversion to online gaming in the past.
Between a rock and a hard place
With $19.9 billion in debt, it's hard to see how Caesars will get itself out of its current hole. The best hope for the company is the legalization of online gaming nationwide. Right now, states are in control of the online gaming space and Bally Technologies
The challenge is staying solvent in the meantime. We've been talking about online poker becoming legal for nearly a decade, and it has yet to take place on a federal level. The World Series of Poker is a great asset, but if Caesars sold it or spun it off, I'm afraid it would be the beginning of the end. There aren't many growth prospects in domestic gaming at the moment, and Caesars would be giving up one of the best opportunities it has.
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Fool contributor Travis Hoium manages an account that owns shares of Wynn Resorts. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.