World Poker Terminates Deal

October 29, 2008

WPT Enterprises, Inc., which is more commonly known as the World Poker Tour has announced that they have informed CryptoLogic Inc. and WagerLogic Inc. that they will no longer be in need of their services. They have terminated their agreement.

They have filed saying that the "Company will no longer operate the WPT-branded online gaming website on the Cryptologic network after November 14th, 2008." This of course is breaking a three year contract that they had signed with CryptoLogic in April of 2007. One can be assured that there must be some sort of large payout going to the online gambling software company in order to break the contract.

It seems that it must be linked to the idea that back in 2006 the World Poker Tour had decided that they wanted to create their own online gambling software. They hired 30 employees and started a business in Israel to create the software. Then they seemingly changed their minds, closed their Israeli offices and signed the aforementioned contract.

They started business under the CryptoLogic name and had their online gambling site up and running June 28th of last year. They were going to pay $750,000 per year to CryptoLogic and if their revenues were lower than that amount the World Poker Tour would make up any shortfall. Then, earlier this year, the WPT extended that online gambling agreement to June of 2011.

One reason could be that the World Poker Tour has not been doing well, and has been losing money. Perhaps they could not afford to make up the shortfall, but could pay off the contract.





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