Big Data Is Worth $1B, But What About The Trade Secrets?

The Wall Street Journal recently reported: “The most valuable asset in the bitter bankruptcy feud at Caesars Entertainment Corp. isn’t the casino operator’s opulent Roman-themed resort at the heart of the Las Vegas Strip. It’s the company’s big-data customer loyalty program, valued at $1 billion by creditors. . . . Caesars, in turn, uses the data it collects from the program to target its marketing campaigns and keep customers playing within its sprawling network of around 50 casinos, driving up overall revenue at the company.” (Kate O’Keeffe, Real Prize In Caesars Fight: Data On Players, Mar. 20, 2015 WSJ, B1.)

Two pressing questions come to mind: (1) Are any portions of the customer loyalty program trade secrets? and (2) Are trade secrets used to implement or otherwise used in connection with the customer loyalty program? If the answer to either question is yes, then the trade secrets should be accounted for and valued. Perhaps they have been. But, if not, then that $1B valuation has left money – perhaps a lot of money – on the table. Maybe the house does always win.