According to Vegas Inc. and Fitch Ratings, Caesars Entertainment, which owns and operates the World Series of Poker (WSOP), could spin off its poker brand or another major asset in an effort to correct its recent financial struggles. According to Fitch, “A spin-off of Caesars’ Interactive unit or other means of monetizing the online business could be logical precursors to a restructuring.” Vegas Inc. added, “More analysts suggest [Caesars] may have to restructure its debt and spin off assets like the World Series of Poker.”

PocketFives reached out to WSOP Vice President Seth Palansky, who told us in an exclusive statement, “There’s no doubt the World Series of Poker and the assets of Caesars Interactive Entertainment are very attractive, but we don’t comment on rumors or speculation.”

On Wednesday, Fitch downgraded Caesars’ stock, which is traded on the NASDAQ Stock Exchange under the symbol “CZR,” from “Stable” to “Negative.” The ratings agency justified its move by saying, “The [parent company’s]near- to medium-term cash burn rate is a key driver of the negative outlook.” Vegas Inc. elaborated, “Fitch today estimated that a Caesars’ subsidiary, Caesars Entertainment Operating Co., will burn through $450 million to $600 million in both 2013 and 2014.”

Motley Fool addressed the prospects of Caesars selling the WSOP brand directly in an article published on Friday: “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, Wynn Resorts, and Las Vegas Sands faced during the financial crisis when MGM decided to sell Treasure Island. Is it worthwhile to sell a quality asset for short-term debt relief if it leaves the remaining business in a worse condition?”

Caesars is sitting on nearly $20 billion in debt, but could receive a shot in the arm from the WSOP should online gaming be regulated on a national level in the United States. As Motley Fool pointed out, the WSOP 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.” Caesars is already partnered with 888 in the United Kingdom and, in February, agreed to work with the European gaming giant should regulation in the United States come to pass.

Caesars’ stock has been on a freefall as of late. In April, shares of “CZR” were trading above $15 per share. However, over the last five months, the stock has shed half of its value and is currently fetching $7.19 per share. Fitch threw out the possibility of Caesars filing for Chapter 11 bankruptcy as a possible solution to its financial woes.

What will happen to online poker legalization on a Federal level in the United States, which could help bail Caesars Entertainment out of its current conundrum? Avid readers of PocketFives will recall that the Republican Party called for the prohibition of internet gambling in its platform, which was finalized late last month.

The GOP’s platform asserts, “We support the prohibition of gambling over the internet and call for the reversal of the Justice Department’s decision distorting the formerly accepted meaning of the Wire Act that could open the door to internet betting.” In late December 2011, the DOJ said the Wire Act only applies to wagering on sports. The result: Nevada and Delaware pushing forward with regulated intrastate online gaming.

Contrastingly, the Democratic Party platform makes no mention of internet gambling. Instead, it makes a very broad statement about the Web: “To preserve the internet as a platform for commerce, debate, learning, and innovation in the 21st century, we… oppose the extension of intergovernmental controls over the internet.”

Despite the seemingly rosy language in its platform, the Democratic Party has had run-ins with poker players in the past. The DOJ under current U.S. President Barack Obama was responsible for the Black Friday indictments of the founders of PokerStars, Full Tilt Poker, and Absolute Poker.

Stay tuned to PocketFives for the latest poker financial news.