Party Gaming Purchases the World Poker Tour

In a development that caught most casual industry observers by surprise, the World Poker Tour announced yesterday that their announced sale to Gamynia for about $9 million or so has been canceled in favor of a more lucrative deal with Party Gaming.

The competing deal, said to be worth a bit over $12 million, gives Party Gaming ownership of WPT’s brand name, programming archive and current contracts. WPT retains some other assets, most notably several million in cash on hand.

“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.”

The deal is still subject to approval by WPT shareholders, but no one seems to think that approval will be much of a hurdle. WPT must pay a $1 million termination fee to Gamynia Limited for backing out of the original deal, a fee that will reportedly be covered by Party.

The move certainly raises some questions about Party’s thoughts on the unfolding legal landscape in the US, as the WPT (for all of its international footholds) is primarily an American-facing company. Party’s acquisition of such an asset, combined with their settlement with the US Government earlier this year, seems to suggest that the company is at least hedging their bets on the possibility of formal regulation of online poker in the US.

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