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Rock Gaming to pay $60.8 million for a slice of Caesars Interactive

04/04/2012 :  LAND GAMBLING FIRM BIDS FOR A PIECE OF CAESARS' ONLINE ACTION
 
Rock Gaming to pay $60.8 million for a slice of Caesars Interactive
 
Long time land gambling business partners Rock Gaming and Caesars Entertainment Corporation have inked an agreement that will see Rock buying into an undisclosed percentage of Caesars online enterprise, Caesars Interactive, for a consideration of $60.8 million.
 
Newsnet5  reports that an SEC filing by Rock shows that it has the option to up its shares in the company by roughly 25 percent down the road for $19.2 million as well.
 
Rock and Caesars are partners in the operation of two of Ohio’s four new casinos in Cleveland and Cincinnati.
 
"Rock Gaming is pleased to expand our relationship with the Caesars organization through an investment in Caesars Interactive Entertainment," the company said in a prepared statement.
 
"Through our existing joint venture to develop full-service urban casinos in Cleveland and Cincinnati...  we believe that an investment in CIE is a natural next step to align our interests and talents with Caesars."
 
Newsnet opines that there’s money to be made in social gaming, which is a significant part of Caesars Interactive. "The potential is evident by looking at companies like Zynga, which offers Texas Hold’em Poker and many others on Facebook," the station notes, pointing out that when Facebook went public earlier this year it was revealed that Zynga made up about 12 percent of the social networking giant's revenue.
 
In addition to their partnerships in the two Ohio casinos, Rock Gaming has an option to purchase part of Caesars Thistledown Horse Racing track in nearby North Randall, Ohio and the two filed a joint application last year in the state of Maryland for the licence to operate a video lottery terminal facility in Baltimore.



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