At the time, many wondered if this marked the end of online poker, which had been booming at a rate that woulda had virtually the entire planet + Jupiter playing by now. Ironically, what was supposed to be a death knell for online poker would actually be what made several of my friends and colleagues (temporarily) rich … and the principals of Full Tilt and PokerStars and Ultimate Bet (momentarily, in the scheme of things) extremely powerful.

Let’s have a little flashback, shall we … to slightly more innocent-til-proven-guilty times … commemorating this uber-significant day in poker history:

Poker Faces in the Crowd
October 16, 2006

Online poker is kinda-sorta illegal now. Pokerati wanted to know America’s thoughts … so we asked the question, How has the new law affected you?

Jennifer Cortez
Account executive

“I think it’s just wonderful. My boyfriend played that PartyPoker like all the time. But now we will be able to see the latest Jennifer Aniston movie, and we can take more walks while holding hands. Do you know how many baby showers we’ve missed because Christopher was ‘near the bubble’?”

Ghassan Abdulhamid Bibi
Starbuck’s barista

“This is total bullshit! I have been playing AQpoker.com step tournaments for two years in an effort to qualify for the WSOP and help Al Qaeda make enough money to purchase nuclear weapons from North Korea. The plan to sneak them through America’s weak ports was almost ready to go, but now we have been foiled again. Damn you George Bush! Allah Akbar al-Poker!”

Maurice Nelson
Quadriplegic

“The new law is clearly discriminatory and violates my rights under the Americans with Disabilities Act. It’s hard to play in a casino when you can’t use your arms.”

Mrs. Michalski
Occasional Pokerati reader

“Dan, I know you’re upset, hon, but try to see the bright side. I think this will be really good for you, because from what I’ve read on the internet, you almost always lose at poker. Will you be coming over for Thanksgiving?”

“Choad”
Official ferret of Kappa Alpha, University of Arkansas

“Uh, poker what? I have no idea. Why are you asking me? I am frickin’ ferret. Look, over there, socks!

Jeffrey Schmollack
Fake WSOP Commissioner

“Off the record? We’re talking off the record? OK, dude, let me tell you, this is so awesome. I mean AWEsome! We didn’t have a fucking clue how we were ever going to handle 12,000 [players at the next WSOP]. And let me tell you something else … those online sites … they made a lot of money. Like billions, man. Give us two years and you’ll see, with soft money greasing the right pockets and the Brits out of the equation, it can all belong to Harrah’s. Why do you think we want that WSOP.com website so bad?”

I was working for Party Gaming in 2006, as chief editor of PokerBlog.com … There, albeit briefly, sadly, I had the freedom to hire and deploy a team to write about whatever we wanted, wherever we wanted, and however we wanted … so long as the content was rich with searchable keywords about poker. Or at least that was the plan pre-UIGEA.

In my time with Party, only one post would get pulled from Pokerblog — my semi-satirical response to this brand new industry-altering US law (above). There would be no argument or debate — the order to remove supposedly came from the very top, Mitch Garber, Party’s relatively new CEO.

“Just put it on Pokerati if you think it’s that important,” my boss in London relented.

Which I did, eventually no longer scratching my head as to why that post may have been such a big deal.

Interesting to see the code explained, visually, for a clearer understanding of how God-mode in the UB Scandal probably worked … then extra-curious to realize Jim Ryan, CEO of WPT-parent Party Gaming, was CEO of Excapsa Software, Ultimate Bet partner, during the heyday of cheating on their site.

And while some may think little of it, because hey, it’s just pretend money … we all know free-play online poker isn’t just about the joys of truly amateur poker … it’s about preparation for real-money online gambling. The WSOP is pushing their free Facebook-app game throughout the Amazon Room, after all, and Zynga takes a rake in their “cash games”. Do a Google search for “Zynga poker rigged” or “Facebook poker scam” … The screams of cheating and scandal are more outrageous than AP/UB/Cereus ever coulda had to cover up.

Whether the apparent security flaws at Club WPT are a matter of coincidence, ignorance, incompetence, or shenanigans, it does make you wonder who will be ready for American players when real-money online poker comes into play.

And while in some ways this graph looks like the inverse of Party Gaming’s graph in ’06 come the UIGEA and their subsequent, calculated US pullout. But zoom out and you’ll see today’s rise for Party (now officially Bwin.Party Digital Entertainment) is merely a token blip in their long-term efforts to get back atop the online gaming world.

Click here to see for yourself.

The “bull case” they make, interestingly, is a scenario where both Stars and Tilt end up in full collapse.

1. FullTilt Turns Off Washington - In big news from last Friday, FullTilt Poker has elected to follow PokerStars’s lead and discontinue providing real money games to players located in Washington State. This impacts players residing in Washington and non-residents of Washington visiting Washington. Tilt’s FAQ on the matter is here. This is being done to preserve Tilt’s Internet-poker-only-is-legal argument. A related fact is that they’re able to protect their poker-only and transparent processing solutions by turning off Washington. This leaves fewer offerings out there willing to service Washington State poker players. [Poker News Daily]

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2. New Jersey Moves Forward on I-Gaming - Irrespective of what’s happening in Congress, New Jersey continues to move forward in its review of an intra-state Internet gaming offering. This week, the NJ Senate’s Budget and Appropriations Committee reported out S490 (Permits Internet wagering at Atlantic City casinos under certain circumstances); the bill now goes to the full State Senate for consideration. This bill has State Senator Ray Lesniak as the primary sponsor. It seeks to authorize Internet wagering in Atlantic City casinos, thereby allowing New Jersey residents to place wagers on casino games by means of the Internet. All games, including poker, which may be played at a casino in New Jersey, may be offered through Internet wagering under this bill. Several commentators have been saying for some time that New Jersey is one of the more promising states for intra-state gaming; if this bill becomes law - and there’s a ways to go yet - those predictions may turn out to have been prescient. [NJLeg.state.nj.us]

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3. Kentucky v. PartyGaming - In other US state news, PartyGaming is not (initially, at least) rolling over in the Commonwealth of Kentucky’s attempt to extract damages from Party. Recall that Party was added to the state’s suit against Pocket Kings (Tilt) earlier this year; Microgaming was added last month. Party has now brought a motion to dismiss the complaint on several grounds. This will be interesting litigation as it rolls forward alongside the Kentucky domain name litigation. Watch for one or more of the identified defendants in Pocket Kings et al to settle. [EGR Magazine]

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4. GTECH Worldwide Expansion - GTECH, a Lottomatica subsidiary, continues to generate interesting news and business. Recently it has struck a number of deals with various operators, including with provincial operators in Canada. Last week two more deals were made public. The first was a 10-year agreement with the Shenzhen Welfare Lottery Center to upgrade existing Keno systems, selling online lottery games, and increasing the operator’s terminal base. [iGaming Business] Then came word that GTECH has received a two-year extension to continue providing support to Pronosticos para la Asistencia Publica in Mexico. [Gaming Intelligence] Even though the parent posted a net loss in Q3, keep watching GTECH, folks.

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5. gTLD Expansions - This is the most important ongoing story in Internet gaming (and, indeed, in intellectual property) that you’re hearing nothing about. Basically, the Internet Corporation for Assigned Names and Numbers (ICANN) is opening up the general top-level domain registry well beyond what’s currently available. Instead of .com, .biz, etc., people will be able to create their own extensions and registries. Some of the new registries could include cities (.london, .nyc), Internet auction providers (.ebay), and people with strong trade-marks and domain names in a host of industries (think of .pfizer or .coke). The implications for Internet gaming are huge. Not only could operators register trade-marked names (e.g., .pokerstars), but they could add security to their offerings by owning, domiciling, and managing their own registries. Some think that a more generic name could be registered by one or more parties: .bet or .poker, perhaps. A summary of changes in the proposed final new gTLD applicant guidebook are here - worth a view. [via CircleID]

I swear I’m not the Facebook police any more than I am a Harrah’s attorney … but when the shit just gets served up while I’m busy liking stuff … it’s kinda hard to miss! Yet another example appeared on Tuesday night of a rather blatant misappropriation of WSOP trademark on Facebook. It always seems to happen on Tuesday nights … hmmm.

First, before I get into the new offense … to be fair and clear, the WPT did acknowledge their error almost immediately after we mocked their maiden foray into Facebook marketing. On September 21 a WPT spokesman said:

“We would like to confirm that the Facebook ad mentioned in your September 17, 2010 post was indeed a mistake on the part of a 3rd party advertising agency used by our “WPT Texas Hold’em on Facebook” licensee. The ad was placed by the advertising agency without the knowledge of WPT or our Facebook game licensee.

Please be assured that we acted immediately to rectify the situation and that the advertising agency has pulled the unapproved ad. Thank you for bringing this matter to our attention.”

Cool, yeah whatever, like we said, we’re not the Facebook police, but you’re welcome — Pokerati is always happy to help. We did notice the replacement ads that appeared the following Tuesday:

LOL-sigh. We’re not the grammar police neither … but I think you mean we’ve gotten better. Or maybe “we gots better, yo?”

Regardless, grammatical impropriety is probably the least of it. Check out the WSOP-branded Facebook ads that began showing up last night in people’s sidebars:

Perhaps coincidentally, perhaps not, this ad takes you directly to the real-money gaming available at PartyPoker.com. Party Gaming, of course, is the parent company of the World Poker Tour.

[Shaking head ...]

I know it’s not really my business, but in the spirit of continued assistance and diplomatic mediation … you can’t do that, Party/WPT! Harrah’s spent good money so that little black-and-white circle with red shapes in the middle makes poker fans subconsciously connect with the WSOP. Don’t think they own the rights to all black-and-white circles on Facebook … but this one, as seen on ESPN every Tuesday, that’s pretty much theirs. And if you keep trying to use it to gank their Facebook fans, someone’s gonna get hurt sued pissed! We don’t wanna see that, now do we …

There, Harrah’s … we just saved your legal team about $14,800 in billable hours. Think you might be able to hook me up with an extra food comp in November?

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In theoretically unrelated news, Pokerati Consulting Services, a division of Pokerati.com, LLC, is offering a new social media package and assorted American casino industry guidance for publicly traded overseas online gaming operations trying to be as legit as possible while setting up shop in the United States.

PCS promises: Fewer Lawsuits and “We’ve got better price”!

Click here to request a quote for services.

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1. Netherlands I-Gaming Attitudes - Probably the most interesting international story of the past week is the ruminations from the Netherlands that the new government may be interested in liberalizing the country’s Internet gambling laws. It’s not clear how far this process would go and what games or betting would be included, but a lot could happen in what has been a very restricted online market in the EU thus far. [eGaming Review]

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2. Nova Scotia Says No (That’s in Canada, Folks) - Another international piece is the recent pronouncement of the premier of Nova Scotia that that province will not pursue a government-sanctioned Internet gaming offering. Nova Scotia’s finance minister added that any estimate of the revenues associated with Internet gaming would be “a wild guess.”(That’s an interesting comment given that the province of Ontario has publicly estimated that it could turn a profit of at least C$100 million/year; many have questioned the basis for such a projection.) The CEO of the Nova Scotia Gaming Corp. (rightly) pointed out recently that Internet gambling will continue to grow whether the government is involved or not. [Globe and Mail]

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3. Betfair Move - Hot on the heels of the Betfair IPO announcement, there is speculation that Betfair may move out of the UK to a jurisdiction with a lower tax rate. William Hill and Ladbrokes recently moved to Gibraltar because they perceived that UK taxes were too high. Some are saying Betfair may make a similar play. With competition increasing among Internet gaming jurisdictions, more and more operators are paying attention to applicable taxes. [CasinoGamblingWeb]
   

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4. Station Casinos Trademark Infringement/Cybersquatting Suit - Station Casinos Inc. has sued two website operators in Federal Court in Nevada: SL Enterprises (www.vegasstationcasino.com) and Ryan Murphy (www.stationcasinos.org). If the Station marks have sufficient rights attached to them through use and/or registration, they should have a good case. This kind of thing happens in i-gaming all the time and it’s a big problem for operators; it’s tremendously time-consuming and potentially expensive to vigilantly prosecute misappropriation of property rights. [Las Vegas Sun]
   

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5. PartyGaming in Venezuela - PartyGaming plc has set up an online poker offering in Venezuela. This continues two trends: Party’s continuing march around the world into new markets and the increased interest in South America as a lucrative and growing market for interactive gaming. [Gambling Zion]

The good news: They’ll be able to play on PokerStars.fr, in a fully legal and regulated way.

They just won’t be able to play against anyone not in France … which sets up a new dynamic of what licensed and regulated online poker could look like worldwide in the not-too-distant future.

France’s regulatory body ARJEL released a list on Friday of nine more approved licensees, adding to 17 previous approvals. French parliament passed a law in October 2009 that ended its state-run online gambling monopoly, allowing up to 30 licenses for privately owned websites. PokerStars got one in this second wave of approvals, and PartyGaming got five.

The newly licensed companies and their completely legalized domains are:

LIL Managers Ltd (FriendBet.fr): sports betting
Reel Malta Ltd (PokerStars.fr): poker
Electraworks SAS (PartyBets.fr , GameBookers.fr, PartyPoker.fr, ActPoker.fr, LuckyJeux.fr): poker, sportsbetting
Gaming Iliad SAS (Chilipoker.fr): poker
Partouche Gaming France SAS (Partouche.fr): poker

[Source: eGaming Review]

The process of opening up the French market, however, has not come without criticism. Some fault ARJEL for expediting the process so certain sports books could receive licenses by June 11, thereby allowing them to take wagers before the first games of the World Cup. Others allege that attempts to legitimize the industry within France are already rife with corruption, as cronies of powerful French politicos were the ones most immediately allowed to benefit

Meanwhile, Malta has filed complaints with the EU, claiming that the French law requiring sites be licensed in France violates European Commission agreements. And established UK betting sites Betfair and William Hill have decided to abandon the French market altogether, claiming the new set-up is “protectionist” and does not adequately open the market to competition.

Others concur, saying instead of creating a competitive business environment, the new law has really just chartered an oligopoly … and one that may not look like the oligopoly original proponents of the law envisioned.

All this kinda started when French brick-and-mortar casinos weren’t happy that they were being prevented from partaking in the spoils of online gambling. Hmm. Sound familiar? And this doesn’t even begin to get into the taxes, which now stand at 2 percent of every online poker pot in France, up to a €1 max …

Here’s a good debate of the issues, on the English-language French TV show, Talking Points.

Ultimately and interestingly, the French poker world, by opening itself up to more than just a single government-run online gambling site, is indeed closing itself off to the global online poker world. And that could just be how it eventually goes worldwide … even in the United States, where INTRAstate online gambling is momentarily all the buzz from California to New Jersey to Florida.

France, of course, with these new licenses, is following in the footsteps of Italy, which already has players at the WSOP that can be seen wearing t-shirts proudly endorsing what is essentially their local online cash and tourney room, PokerStars.it. Supposedly other European countries are looking to adopt a similar model of semi-isolationism. Meanwhile there’s talk of a partnership between France and Italy that would allow players in both of these independently regulated jurisdictions to compete against each other. So …?

Good news or bad news over time, what we do know as of this weekend is that at least a few familiar online poker sites have locked down their place in the future online poker world, however it takes shape.

Back in November, when I first learned about the WPT’s imminent sale to PartyGaming, I bought up as much WPTE stock as I could, assuming it would blow up, or at least be converted to Party stock in a highly profitable way. Much to my disappointment, when the new shares showed up in my online account, they were for Lipscomb’s new company, Ante4, which had no plans just a bunch of cash. They were trading at less than a dollar a share.

Believing I had seen this repeatedly while chasing penny tech stocks in the late ’90s — almost always these companies available on the cheap gave me hope briefly before descending on an asymptotic curve towards zero — I quickly sold all I had just bought of ANTF and dumped it into PRTY.L. If only someone had told me to hold on to it! Now, just six months later, the new Lipscomb-Berman joint that I got (and got rid of) at 90something cents is trading at $3.44, for a YTD increase of 222 percent.

Why do I think for all the grief I’ve given Steve Lipscomb over the years, he’s sitting in a very happy place right now, laughing … at me?

Seriously, I can’t believe they let people gamble this way on the internet! But it’s just so hard not to with those cute baby ads making it seem like any kid with access to a computer and a credit card can do it!

Party’s stock, btw, hasn’t exactly exactly been doing poorly. But does anyone know what caused such a dramatic but temporary plummet for a few days this month?

This case specifically addressed two players in Ohio who sued PartyPoker claiming collusion. However, the court ruled, and the Appeals court upheld: Sorry, take your beefs against Party to Gibraltar. When they signed on and agreed to play, they did so accepting Terms and Conditions agreeing to handle all disputes in Gib, nowhere else, the court said.

Here’s the tale from poker-law expert I. Nelson Rose:
Trial in Gibraltar or Jail in Ohio

In it …

But the concurring opinion of Judge Merritt, quoted above, should give all Internet poker operators and players some nightmares. He ruled that the case had to be heard in Gibraltar, because to allow Ohio state law to apply would mean Wong, Gibson and everyone working for Party Poker would have to go to jail!

No one had raised the issue of whether Internet poker was illegal. “But sometimes courts have to raise embarrassing questions that both parties to litigation had rather we overlooked.”

Not so sure I agree that this decision “should give all Internet poker operators some nightmares.” I think it’s kinda the opposite. With Full Tilt juggling cases of varying frivolity out the ying-yang, I gotta think they’d be pretty happy with what could be precedent to force plaintiffs to take up matters outside (the US).

Party Gaming’s stock, btw, has been doing quite nicely of late:

PRTY.L

photo: BJ Nemeth

A shocker but not really … Jeffrey Pollack and Harrah’s are breaking up.

The WSOP Commissioner, President, and Twitterer in Chief‘s last day with Harrah’s and the World Series is today.

“I’ve made the decision after four years of successfully leading the WSOP as a global sports and entertainment property,” he says. “[Today] is my last day. Friday the 13th.”

Pollack — who has never played a poker tournament — took over the reigns shortly after the 2005 WSOP, the first year Harrah’s ran the 35-year-old tournament series bought from Binion’s.

The list of accomplishments under his aegis include drawing more competitors from more countries (putting it on par with the Olympics in terms of numbers), supporting women in poker, helping Don Cheadle and Annie Duke build Ante Up for Africa into a Hollywood A-list charity event, and working closely with players (via the Players Advisory Council) to steadily improve what is undeniably the biggest and arguably the best annual festival of poker tournaments in the world. He credits his team for incorporating TV broadcasting (most recently securing a new long-term contract with ESPN), new media, sponsorship, licensing, and summer-time side events that have made the Rio a real home for the WSOP and part of sure-to-endure poker lore.

“I’ve achieved everything I set out to do and more,” Pollack says.

WSOP 2005

WSOP 2006

photos:
Flipchip / LasVegasVegas

WSOP 2009

In his 4 1/2 year stint, Pollack shepherded the World Series through it’s biggest boom year, 2006, and then its recovery period after the UIGEA. In 2008, WSOP-parent Harrah’s went from a publicly traded company to a private one, and in May of this year, created a new corporate step-parent — Harrah’s Interactive Entertainment — with attorney-turned online gambling exec Mitch Garber at the helm.

“All organizations change over the years,” Pollack says.

The new boss, Garber, of course, has navigated through the same turbulent industry waters … as the former CEO of PartyGaming (the WSOP’s biggest online gaming partner in 2006) and before that as Executive Chairman of FirePay and president and CEO of its parent, Optimal Group, an online gambling payment processor that settled two weeks ago with the US government for pre-UIGEA transgressions for $19.2 million.

A WSOP spokesman says: “We appreciate Jeffrey’s contributions over the past four years and wish him the best in the future. The World Series of Poker remains the market leader with this year’s tournament exceeding all expectations, and we are well positioned for the future. There is no intention at this time to replace the Commissioner role.”

Pollack describes the split amongst suits as amicable but “bittersweet”. The team he worked with — Ty Stewart, Seth Palansky, Craig Abrahams, Jack Effel, and many others — are all staying on board. Pollack is not sure what he will do next. He says possibilities include media, sports, entertainment, poker, and gaming.

“I’m very bullish on the future of poker. The industry is just hitting its stride,” he says.

“Maybe I’ll even play the main event next year.”

9 November 2009

PartyGaming Plc
(“PartyGaming” or “the Company”)

Acquisition of World Poker Tour completed

PartyGaming, the world’s leading listed online gaming company, announces the completion of the acquisition of the business and substantially all of the assets of WPT Enterprises Inc. (“WPTE”) for a cash consideration of $12.3 million plus an additional minimum aggregate payment of $3m over the next three years relating to an ongoing revenue share agreement.

The assets being acquired include, inter alia:

· The World Poker Tour® brand, rights to a number of land-based events in the US and Europe and all other intellectual property rights associated with the World Poker Tour
· An extensive library of over 150 hours of poker programming that is broadcast in more than 150 countries
· The ClubWPT subscription poker offering that has more than 16,500 paying subscribers in 37 US states

Commenting on today’s announcement, Jim Ryan, PartyGaming Chief Executive Officer, said:

“This deal brings together two of the biggest brands in online and offline poker – www.PartyPoker.com and World Poker Tour – that we will market internationally to build our poker business. Our plans also include using the ClubWPT subscription platform to leverage our 12 million-strong US player database via a Party-branded website and the launch of a European WPT-branded poker and casino site. We are excited about the opportunities that WPT, a proven marketing channel for the Group, will create for PartyGaming, particularly if the US regulates and licenses online gaming.”

Steve Lipscomb, the founder of WPTE, said:

“PartyGaming has been an important partner for a number of years and we are confident that they will be an excellent manager of our brands in the future. Combining two of the pioneers and leaders in the poker and online gaming markets will create a strong vehicle for the WPT brand to continue its global expansion.”

But then, upon meeting Pliska a few minutes later …

Hmm … White House, WPT House, WPTE House … Party Politics … workshop … but still, there might be something there.

Click below to read the corporate bio of a guy who stands to be rather influential in shaping poker’s future. But first, here’s another pic (taken at the actual White House) of the new WPT president, who was in town to talk about plans for what he believes will be a major poker stimulus:

ADAM PLISKA
PRESIDENT, WORLD POKER TOUR

Mr. Pliska served as the General Counsel and Secretary to the Board of the public and predecessor entity, WPT Enterprises, Inc. (formerly NASDAQ: WPTE) until November 2009, when a new company by the same name was established from the acquisition of the assets of the World Poker Tour by Peerless Media, Plc a subsidiary of PartyGaming, Plc. In his former role, Mr. Pliska oversaw the legal process that resulted in the former company’s initial public offering in August of 2004 and primary deal making throughout the United States, Europe and Asia throughout his tenure.

Prior to his experience at WPTE, Mr. Pliska served as the Vice-President of Legal and Business Affairs and eventually General Counsel for a multi-media company headed by the world renowned futurist, Alvin Toffler and financed by Carlos Slim Helu (See Forbes #3) and the Telmex Corporation. In addition, Mr. Pliska was an associate at the law firm of Sonnenschein, Nath & Rosenthal in Los Angeles where he worked on various litigation and intellectual property matters.

Before his legal career, Mr. Pliska worked as a television producer in connection with noted industry veteran Al Burton including work at Universal Television and Castle Rock Entertainment where he produced and developed numerous television properties. He contributed and worked on various programs including The New Lassie, Baywatch, Out of the Blue, and shares an Emmy Award for his contributions for the Development of the television program Win Ben Stein’s Money.

Mr. Pliska is an alumnus of USC Film School and UC Berkeley’s law school, Boalt Hall. While at Boalt he worked as a research assistant to Professor John Yoo preparing amicus curia briefs for the California and U.S. Supreme Court. Additionally, he served at the 9th Circuit Court of Appeals for the Honorable Alex Kozinski and at the Governor’s Office of Legal Affairs in the state of California for then Governor Pete Wilson.

Mr. Pliska also serves in the capacity of Chief Legal Counsel to the Company.

Mr. Pliska was born and currently resides in Newport Beach, CA.

WPT ENTERPRISES, INC. ANNOUNCES RESULTS OF SPECIAL MEETING OF STOCKHOLDERS

Los Angeles, California, November 1, 2009 — WPT Enterprises, Inc. (NASDAQ:WPTE) announced that, at a Special Meeting of Stockholders held on October 30, 2009 (the “Meeting”), stockholders approved the Asset Purchase Agreement (the “Agreement”) dated as of August 24, 2009, by and between WPTE and Peerless Media, Ltd (“Peerless”).

In the final vote count by the independent inspectors of election, 13,996,639 WPTE common shares (approximately 67.93 percent of the outstanding common shares) were represented at the Meeting, in person or by proxy, and the Agreement was approved by 85.28 percent of the shares voted and 57.93 percent of the shares outstanding.

The closing of the transaction is anticipated to occur in the early part of November 2009.

Additionally, on October 29, 2009 WPTE received a written offer from Mandalay Media to merge Mandalay Media with WPTE for the payment of cash and stock in Mandalay Media (the “Mandalay Proposal”). The board of directors of WPTE reviewed the Mandalay Proposal and concluded that it was not a Superior Proposal (as defined in the Agreement). On October 30, 2009, WPTE received a modified written offer from Mandalay Media (the “Modified Mandalay Proposal”). On October 31, 2009 the board of directors of WPTE reviewed the Modified Mandalay Proposal and concluded that it was not a Superior Proposal.

About WPTE

WPTE is one of the most recognized names in internationally televised gaming and entertainment with brand presence in land-based tournaments, television, online and mobile. WPTE has led innovation in the sport of poker since 2002, when it ignited the global poker boom with the creation of the World Poker Tour television show based on a series of high stakes poker tournaments. WPT is now broadcast globally. WPTE also offers a unique online subscription and sweepstakes-based poker club, ClubWPT.com, which operates in 38 states across the U.S. WPTE also participates in strategic brand license, partnership and sponsorship opportunities.

Safe Harbor for Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by executive officers or directors of the Company) contains statements that are forward-looking, such as the timetable for completing the transaction. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of the Company. These risks and uncertainties include, but are not limited to, the risk that the asset sale is not closed. For more information, review the Company’s filings with the SEC.

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Let’s see if I’m right. I’ll be checking it in the morning. Party stock opened today at 2.53 (and I started writing this post before the London bell rang). It’s at 2.60 now.

Full disclosure: I own a teensy-eensie-weensie sliver of PartyGaming … I think I bought the company a few sleeves of coffee cups post-UIGEA. This post contains forward-thinking statements that are not my attempt at a pump-and-dump.

UPDATE: Boo, Boo! C’mon, get up there!

UPDATE: Closed at 2.59 … up about 2 percent. So I kinda win, but not really.

PartyGaming Moves For World Poker Tour Assets with Superior Offer

LOS ANGELES, Aug 24, 2009 (BUSINESS WIRE) — WPT Enterprises, Inc. (Nasdaq: WPTE) (“WPTE” or the “Company”) today announced that a subsidiary of PartyGaming Plc, Peerless Media Ltd. (“Peerless Media”), has agreed to purchase substantially all of WPTE’s operating assets other than cash, investments and certain excluded assets. WPTE’s Board of Directors received the offer after privately held investment group, Gamynia Limited, and WPTE announced an asset acquisition agreement, which was terminated after further consideration of the Peerless Media’s financial proposal.

“PartyGaming has been an important partner for a number of years and we are confident that they will be an excellent manager of our brands in the future,” said Steve Lipscomb, President and CEO of WPT Enterprises. “The Board of Directors has determined that PartyGaming’s acquisition proposal is financially superior and we look forward to working with one of the pioneers and leaders in the poker and online gaming markets to provide a strong vehicle for the WPT brand to continue its global expansion and return to online gaming.”

Peerless Media will pay WPTE $12.3 million and will pay WPTE an ongoing 5% participation in gaming and other revenues generated by the assets. Certain payments made by PartyGaming or its affiliates to the Company prior to the close shall be credited on a dollar for dollar basis against the purchase price paid at the close, as more fully described in Section 2.6 of the purchase agreement.

Under the asset purchase agreement, WPTE will sell its television library, including all related intellectual property rights, brand names, trade names, certain assumed contracts and tangible personal property. WPTE will retain its cash and cash equivalents, investments in debt securities and put rights, certain other investment and litigation assets, and future license revenues from certain existing Sponsorship deals for Season Seven of the World Poker Tour.

The net cash proceeds from the asset sale will be retained by WPTE which plans to use the cash to develop or acquire a non-poker related business. WPTE does not currently intend to distribute any proceeds from the asset sale to its stockholders.

Closing Conditions and Stockholder Approval

The asset purchase transaction is subject to specified closing conditions. The obligation of Peerless Media to complete the transaction is subject to the absence of changes or circumstances that are materially adverse to the Company’s financial condition, assets, business or results of operations and other customary closing conditions. The Company’s obligation to complete the asset sale is subject to the approval by the Company’s stockholders of the asset sale transaction and other customary closing conditions. The Company and Peerless Media currently expect to complete the transaction in the fourth quarter of 2009.

The transaction must be approved by a majority of the holders of the Company’s outstanding common stock. To that end, and as described further below, the Company expects to hold a special meeting of stockholders and in connection therewith to mail a proxy statement to its stockholders that will provide additional information concerning the asset sale transaction and the asset purchase agreement. Certain significant Company stockholders, representing approximately 39% of the Company’s common stock, have entered into voting agreements committing to vote in favor of the asset sale transaction to Peerless Media.

Important Additional Information about the Asset Sale will be filed with the SEC

The Company plans to file with the U.S. Securities and Exchange Commission (“SEC”) and mail a proxy statement to its stockholders in connection with the asset sale transaction and the asset purchase agreement. The proxy statement will contain important information about the Company, Peerless Media and the guarantor of Peerless Media’s obligations, ElectraWorks Ltd., and related matters. Investors and security holders are urged to read the proxy statement carefully when it is available.

The Company’s investors and security holders will be able to obtain free copies of the proxy statement and other documents filed by the Company with the SEC through the website maintained by the SEC at www.sec.gov. In addition, the Company’s investors and security holders will be able to obtain free copies of the proxy statement by contacting WPT Enterprises, Inc., Attn.: Investor Relations, 5700 Wilshire Blvd., Suite 350, Los Angeles, CA 90036 or by calling 323-330-9900.

The Company and its directors and executive officers, may be deemed to be participants in the solicitation of proxies with respect to the asset sale transaction and the asset purchase agreement. Information regarding the Company’s directors and executive officers is contained in the Company’s Annual Report on Form 10-K for the year ended December 28, 2008 and its Proxy Statement dated March 31, 2009, which were filed with the SEC.

About WPT Enterprises, Inc.

WPT Enterprises, Inc. is one of the most recognized names in internationally televised gaming and entertainment with brand presence in land-based tournaments, television, online and mobile. WPTE has led innovation in the sport of poker since 2002, when it ignited the global poker boom with the creation of the World Poker Tour television show. Based on a series of high stakes poker tournaments, the World Poker Tour is now broadcast globally and is currently filming its all-new eighth season for broadcast on Fox Sports Net’s national sports network in the United States. WPTE also offers a unique online subscription and sweepstakes-based poker club, ClubWPT.com, which operates in 38 states across the U.S. WPTE also participates in strategic brand license, partnership and sponsorship opportunities. For more information, see www.worldpokertour.com. (WPTEG)

Safe Harbor for Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by executive officers or directors of the Company) contains statements that are forward-looking, such as expectations about the asset purchase agreement, the retention of the net cash proceeds by the Company, the timetable for completing the transaction, the ability to enter into one or more strategic transactions to combine with another company, future revenues earned by Peerless Media with the Company’s brands and the Company’s participation in the future revenues, and the proxy statement to ask Company stockholders to approve the asset purchase agreement. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of the Company. These risks and uncertainties include, but are not limited to, the risk that the Company’s stockholders do not approve the asset purchase agreement, the risk that the asset sale is not closed, the risk that the Company does not acquire or develop another business using the net cash proceeds from the asset sale, and the risk that Peerless Media does not earn significant future revenues with the brands and that the Company does not participate in the future revenues. For more information, review the Company’s filings with the SEC.

SOURCE: WPT Enterprises, Inc.

WPT Enterprises, Inc.
Thomas Flahie, Interim Chief Financial Officer

Developing …

We’ll hold off on saying too much until we get more solid information, but basically, checks from PokerStars are “bouncing”, particularly with New York banks. Instant E-checks seems to be the payment processor most notably affected at present. However, it’s not just e-checks … paper checks are proving uncashable, too. Reliable sources tell us that this is not just a little snafu, but that it’s the direct result of DOJ enforcement actions somehow connected to the Federal Court in New York’s Southern District.

This is the same court, of course, that handled Neteller way back when, and more recently came to non-prosecution agreements guilty plea settlements with Anurag Dikshit et al. While the Party Poker dudes are officially in the clear,* is it possible the Feds are now saying, hey, that was fun, and we got a lot of money … let’s try it again with those PokerStars guys!?!

The FBI offers more clarity on who’s agreed to what between Party Poker peeps and the Feds here.

The best I can tell, right now Stars seems to be the target. No confirmation on the fates of Full Tilt and UB payment processing.

UPDATE: Problems at Full Tilt, too. (Thanks, Ken, for the info/link!) And Ultimate Bet.

Regardless, whatever shakes down (pun intended), it raises a lot of questions at an interesting time, considering how much big money gets transfered passed between poker players — particularly in the summer — often on an online site in exchange for casino chips and/or bricks of cash.

Might the value of the Euro have just gone up, at least in the poker economy? Seems plausible if they’re the only ones able to convert online bankrolls into real American WSOP buy-in dollars.

* Cases against (with?) two other Party principals, Ruth Parasol and Russ DeLeon, are still pending in the same court.

The official word:

HARRAH’S ENTERTAINMENT FORMS HARRAH’S INTERACTIVE ENTERTAINMENT
NEW SUBSIDIARY TO MANAGE THE GLOBAL GROWTH OF THE WORLD SERIES OF POKER® (WSOP)
AND EXPLORE EUROPEAN INTERACTIVE EXPANSION STRATEGY

LAS VEGAS, May 29, 2009 – Harrah’s Entertainment, Inc. (Harrah’s) announced today that it has established a new subsidiary, Harrah’s Interactive Entertainment, Inc. (HIE) to manage the global growth of the World Series of Poker® (WSOP) and explore a European interactive strategy.

“As the world’s largest gaming company, Harrah’s is taking a proactive approach toward international and interactive expansion,” said Harrah’s Entertainment Chairman, President and Chief Executive Officer Gary Loveman. “It is important we position ourselves to explore new markets as well as new technologies with our best in class brands.”

Mitch Garber, a longtime gaming lawyer and public company senior executive, joins HIE as CEO. Jeffrey Pollack, Commissioner of the WSOP, remains in that role and will become President of HIE.

In addition to growing the World Series of Poker, HIE will explore the use of interactive gaming technologies to expand the reach of Harrah’s brands globally, starting in Europe. With its renowned Total Rewards customer-loyalty program, HIE will be utilized to develop new opportunities to strengthen and grow Harrah’s customer base.

The World Series of Poker, in its 40th year, has experienced record growth in the last five years. Participants from 124 nations competed in last year’s tournament, up from 24 just five years ago and entrants have gone from 13,036 to 58,720 during the same span. The WSOP expanded into Europe in 2007 with the creation of the World Series of Poker Europe® held each fall in London.

Yikes, is it really May 29 already?

He eventually cashed out much of his interest (damn UIGEA) … but now, perhaps as a sign of things to come or perhaps just out of fondness for the way things once were, Mike Sexton has re-upped his relationship with Party and will be representing them as an official face and host on the site.

More details from Party below:

AMBASSADOR OF POKER MIKE SEXTON RENEWS HIS ASSOCIATION WITH PARTYPOKER.COM

Gibraltar – 29th April 2009 – http://www.partypoker.com/, is delighted to announce that it has renewed its association with poker legend Mike Sexton. Mike will act as a host, consultant, ambassador and player for the leading online poker room.

Sexton, who has acted as the host of PartyPoker.com in the past, is unarguably one of the most respected figures in the game. As the face and voice of the World Poker Tour and holder of a WSOP bracelet, Mike is truly one of the games pioneers. Sexton is in the top ten for the most cashes at the World Series of Poker® and is instantly recognizable to poker enthusiasts around the world. Regarded as ‘The Ambassador of Poker,’ for years Mike advocated corporate involvement with poker to take the game he loves into the mainstream. Notably, Sexton also won the first $10k buy-in NL hold’em championship event at Foxwoods World Poker Finals in 1992 and in 2000 was the first American to win the championship event at the Euro Finals of Poker in Paris, which at the time was the biggest event in Europe.

Through his role with the World Poker Tour Mike coined the legendary famous poker phrase “it takes five minutes to learn but a lifetime to master.” In 2006 Sexton won the Tournament of Champions at the World Series of Poker®, a concept he had originally created. He donated $500,000 of his winnings to charity and has since become a co-founder of http://www.pokergives.org/, which encourages players to make charitable donations.

“PartyPoker.com has always had a place in my heart and is special to me. I am delighted to pen a new deal, it means so much to me,” said Sexton. “I am looking forward to representing them in events around the world and meeting the online package winners at the WSOP. I also relish my role as a consultant advising on poker room matters.”

“The site has changed a lot in recent times and I am very impressed by the new software and new VIP and loyalty schemes.”

A spokesman for PartyGaming Plc, owners of PartyPoker.com said: “We are truly delighted to renew our association with Mike Sexton. Mike is the ‘Ambassador of Poker’ and we hope he gets the acknowledgement he deserves and is inducted into the WSOP® Hall of Fame this year. Poker wouldn’t be as popular as it is today if it wasn’t for Mike Sexton.”

Sexton will be representing PartyPoker.com at the WSOP® and at events worldwide throughout 2009. PartyPoker.com will have a suite at the Rio around the World Series of Poker® Main Event, where Mike will act as a host. Mike will also be making contributions to the PartyPoker.com blog http://blog.partypoker.com/ and nurture new poker talent on behalf of the site.

Harrah’s Denies Garber Hire Tale

15 Apr, 2009 / GamblingCompliance Ltd. / Scott Longley
Harrah’s has moved to deny rumours that ex-PartyGaming chief Mitch Garber has joined the company to run an online operation which would incorporate the World Series of Poker (WSOP).

A spokesperson for the Las Vegas giant said the company “did not have anything to share” regarding the Garber rumours. He added: “We haven’t announced anything, and we don’t have any plans to announce anything.”

Suggestions that Garber was about to join Harrah’s have been circulating for months, and gained new currency when they were repeated in a Sunday Times story last weekend in the UK.

Garber left Party back in May 2008 having helmed the firm through a tough period around the time of the enforced UIGEA-related exit from the US market in October 2006. He handed over control to current chief executive Jim Ryan.

I dunno … doesn’t sound like that much of a denial to me. But maybe … who knows?