Allied Esports Entertainment Inc. has agreed to sell World Poker Tour for a sale price of $105 million.
The sale officially closed on July 12 and it could change the online poker industry in the United States in a short amount of time.
Element Partners LLC was the company that has agreed to purchase the World Poker Tour, but there was some competition involved as well. Bally’s Corp reportedly made an offer during this process as well, but the Element Partners LLC offer was better.
The World Poker Tour not only offers online poker tournaments but also hosts land-based events as well. This will be beneficial over the next few years as there are still a limited amount of online poker markets available in the US.
During this process of the sale, Element Partners was initially set to acquire the World Poker Tour for a price of just $78 million. When Bally swooped in and made an even bigger offer, Element Partners was forced to increase its own bid in order to complete the purchase.
Foster City, California is the listed address of the Element Partners headquarters, but not much is known about this company. In the announcement of the sale, there was no statement given by a representative of Element Partners, but Allied Esports Entertainment was celebrating the deal.
CEO of Allied Sports, Frank Ng, stated, “This is a momentous day for (Allied Esports Entertainment) and an opportunity to focus on growing the business in exciting and innovative ways.” Esports is another industry that is really taking off in the United States, and this will allow the company to focus on becoming an industry leader.
The World Poker Tour was founded back in 2002 and it is credited with helping to make the game of poker more popular. Online and mobile casinos, specialty NJ mobile casinos have really risen to the forefront of iGaming in the last few years. Poker has somewhat lagged behind, but this new ownership could bring about some much-needed hype for online poker.
Limited Online Poker Offerings Available
The online poker industry in the United States has seen slow growth compared to the sports betting industry. This should be changing over the next few years, but only a handful of states currently allow for this type of iGaming.
There are just six states with legal online poker options, with Michigan joining the industry back in January 2021. Michigan has shown tremendous growth since that time and could end up being one of the leading markets in the US. MI Mobile casinos have already surpassed expectations in terms of popularity.
The other states that offer online poker are Delaware, Nevada, New Jersey, Pennsylvania, and West Virginia. Some of these states already have an interstate poker agreement in place, and that could soon become an option as well.
The United States Department of Justice has not challenged a recent court decision, and interstate poker is now legal in the United States. There are still some issues that will need to be worked out, and Michigan could be looking to join in the agreement as well.
PokerStars and 888Poker (sister company of 888casino) are the two other biggest online poker providers in the United States. 888 is the home of the World Series of Poker, easily the biggest tournament in the country each year.