Thursday, August 31, 2006

WPTE deserving of another look?

The World Poker Tour, known by most for its licensing agreement with the Travel Channel to show its poker tournaments, has a small but promising online poker franchise that could create huge gains for WPT Enterprises, writes a columnist for TheStreet.com.

The stock, ticker WPTE, has been hammered recently, and many investors may recall that the Company was subject to some wild movements over a year ago when it was reported that Doyle Brunson had submitted an unsolicited bid to buy the business at an outrageous amount. The deal ended up being fruitless and WPTE has been getting punished ever since.

The big question for the Company is how to tap the huge online gambling market while still abiding by U.S. regulations. U.S. law forbids companies based in the States to allow gambling from those logging in on U.S. soil. According the article linked in this post, the U.S. accounts for 50% of the online gaming demand.

Will WPTE be able to tap into what's left and save its struggling franchise? Time will only tell, but the poker fad does not seem to be going away anytime soon.

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