* Loveman notes online games legal worldwide
* Caesars bets on its World Series of Poker franchise
By Ross Kerber
BOSTON, Feb 14 Caesars Entertainment Corp
stands to benefit from the rise of social media gaming,
Chief Executive Gary Loveman said in a speech on Tuesday.
Loveman described what he called "the continued remarkable
growth of online social games" in remarks at a luncheon in
downtown Boston. Although the Las Vegas company's resort plans
are often tied up in local proceedings, online games like those
Caesars offers through its Playtika business face fewer rules.
"These games are legal for anyone to play anywhere in the
world," Loveman said.
Shares in the casino operator have fallen after an initial
public offering last week. Investors have worried about Caesars'
debt and lack of a presence in fast-growing Asian markets.
Loveman gave few financial details during his speech, sponsored
by the Boston College Chief Executives' Club of Boston.
But in a document filed to the Securities and Exchange
Commission Caesars made clear its ambitions for online gaming,
such as through its World Series of Poker franchise. Prior to
restrictions in 2006, online poker in the U.S. generated roughly
$1.5 billion in revenue, the document states.
"We are not aware of another U.S. landbased casino company
that owns an online gaming business," the filing states. Though
many online players spend money mostly for fun and not for
wagers, as at casinos, Loveman reminded journalists after his
talk of the IPO of gamemaker Zynga Inc in December best
known for games like Farmville.
Caesars Entertainment runs resorts under the Caesars,
Harrah's and Horseshoe names. Loveman remains a Boston local,
commuting from his home in the suburbs.
Before he joined the casino company in 1998 he had been a
professor at Harvard Business School. Loveman had written
then-CEO Phil Satre a letter with ideas for the company; Satre
responded with a job offer and later made Loveman CEO of the
company then known as Harrah's Entertainment.
In its IPO on Feb. 8 Caesars sold about 1.4 percent of its
shares outstanding. The offering was widely viewed as a way for
the debt-laden company to make up some losses for its
private-equity backers. Minority investors have included Goldman
Sachs and hedge fund Paulson & Co.
The shares rose that day from their initial price of $9 each
to as high as $17.90, but they have since fallen and were
trading at $12.72 Tuesday afternoon. It was taken private by
Apollo Global Management and TPG Capital in
Loveman spent much of his talk on Tuesday arguing criticism
of the growing casino industry is overblown and that new casinos
do not boost crime or take advantage of poorer customers.
He did say about 1 percent of the population is prone to
gambling addiction. "We have to deal with that," he said.
Loveman spoke just months after Massachusetts officials
approved a bill to allow casinos, and began a process to select
operators for three of them. Caesars has a partnership with a
Boston-area racetrack to create one of the facilities.
Depending on the design of the facilities, about 40 percent
of their revenue could be captured from neighboring states, he