Thursday, January 29, 2004
Copyright © Las Vegas Mercury

When to fold 'em

Some wonder whether the World Series of Poker can survive the Harrah's buyout

By Bob Shemeligian

It's been nearly 35 years since Benny Binion decided to stage a battle of poker giants at his Horseshoe casino downtown. The tournament, dubbed the World Series of Poker, would decide who is worthy of the title of world champion. Binion, always the savvy entrepreneur, realized the tournament would bring in casino customers and lots of publicity. But even he had no idea how big the World Series would become.

Today, the World Series draws hundreds of competitors from as far away as Europe and the Far East, and is covered by ESPN as well as countless print, television, radio and Internet outlets.

"No other tournament comes close to the World Series," says 1986 champion Berry Johnston. "Winning the World Series is more prestigious than winning 100 other tournaments."

One who agrees is Susie Isaacs, the 1996 and 1997 women's world champion of poker. "The World Series is the most important tournament on the planet. There's no doubt," Isaacs says. "After all, it's the original."

Many professional poker players believe Harrah's Entertainment dealt them a winning hand last week when the huge gaming corporation announced it will buy the beleaguered Binion's Horseshoe, which was forced to close in early January because of severe financial problems. But others wonder whether the days of the World Series are numbered.

"If they call it Harrah's World Series of Poker, that would ruin the tournament," Johnston says. "Could you imagine the Texaco World Series in baseball?"

Others question Harrah's track record of conducting poker tournaments. They cite the demise of Harrah's Carnivale of Poker three years ago as an example. The tournament, which was operated at the Rio in the late 1990s, was moved to Harrah's on the Strip in 2000, where it died with a whimper. Some believe Harrah's officials--alarmed at the sight of unsavory tournament poker players wandering through the Strip casino--decided to put an end to it.

"Some poker players fear that Harrah's is not poker-friendly, given the way the corporation ran the Carnivale of Poker," says Linda Johnson, former publisher of Card Player and operator of Card Player Cruises.

But at a press conference last week, Harrah's President Gary Loveman said there's no comparison between the former Carnivale of Poker and the World Series. "The World Series of Poker is the largest and most prestigious tournament in the world. There's nothing else like it, and we're very pleased to run it."

But where? Harrah's officials say the tournament, set to be begin April 22, will always be in Las Vegas, and this year will be at the Horseshoe. But officials also say they aren't planning to refurbish or rebuild the old Horseshoe property with its creaky wooden sub-floors and whorehouse velvet wallpaper. In addition, Harrah's officials make no secret that it's the brand name of both the Horseshoe and the World Series that most interests the gaming giant.

"There are several assets," says Harrah's spokesman David Strow. "One obviously is the property. However, what we also find particularly attractive is the Horseshoe name within the state of Nevada and the World Series of Poker."

This reinforces speculation that 2004 will be the last year the World Series will be played downtown. "I don't think the view [from Harrah's] is to use the Binion's Horseshoe brand solely downtown," says Andrew Zarnett, a bond analyst with Deutsche Bank. "I think the view is to use it somewhere else on the Strip."

In other words, don't be surprised if a Harrah's Horseshoe surfaces at the site of the old El Rancho, the Tropicana or even the New Frontier, owned by Kansas businessman Phil Ruffin, who has been seeking partners and capital to rebuild his Strip property.

Some sources say Harrah's--which owns the Horseshoe brand in other gaming jurisdictions as well--would be more comfortable continuing the brand on the Strip rather than downtown. Others says the jury's still out.

"I have no insight as to what Harrah's will do," says Don Snyder, president of Boyd Gaming Corp., which operates the Fremont, Main Street Station and California, all downtown, as well as the Stardust on the Strip. "I'm not sure Harrah's knows exactly what it will do at this point. I do think Harrah's would be good for downtown, and that the Horseshoe brand is a very good one."

If Harrah's ends up selling the Horseshoe, the landmark property could join the legions of other downtown properties that have been recently snapped up by new operators. Among them are Magoos slot bar owner Terry Caudill, who last year purchased the Four Queens for just more than $20 million, and former Travelscape executives Tim Poster and Thomas Breitling, who recently purchased the Golden Nugget and the sister property in Laughlin for $215 million.

Another new operator is Barrick Gaming Corp., which in recent years has purchased several downtown properties, including the Plaza, Western, Gold Spike and the Las Vegas Club from Jackie Gaughan. While Barrick chief gaming officer Phil Flaherty declined comment this week, some sources believe Barrick is interested in purchasing the Horseshoe and restoring some of the historic legacy to the property.

"Who knows? It could reopen as The Mint," says one insider, referring to an old-time downtown casino that was later merged into the Horseshoe.

That would be just fine, says Isaacs, who believes the World Series will thrive in any suitable Las Vegas resort. "I would love to see Harrah's move the tournament to the Rio," Isaacs says.

Other poker players say they are happy the legendary tournament will be run by someone other than Becky Behnen, daughter of Benny Binion, who enacted several cost-cutting measures over the years during operation of the casino as well as the tournament itself. Among other things, Behnen cut back on "comps" to players, streamlined the once-lavish tournament buffet and battled with tournament dealers and other personnel over wages and tips.

"Wherever they move the tournament, it will be a win-win situation for the players," says Bonnie Rattner, sales director for Players Choice. "Perhaps Harrah's will bring back some of the amenities and the feel of the old days--before everything was done on a budget."