PROFESSIONAL POKER PLAYERS SUE WORLD POKER TOUR

Jeffrey L. Kessler of Dewey Ballantine LLP opened an early morning press conference to announce the filing in federal district court in Los Angeles of an antitrust lawsuit against the World poker Tour by seven well known professional poker players…Chris Ferguson, Phil Gorden, Greg Raymer, Andy Bloch, Howard Lederer, Joseph Hachem, and Annie Duke. The players are seeking to enjoin WPTE’s illegal business practices and they also seek treble and punitive damages for WPTE’s wrongful conduct. WPT Enterprises, Inc. (Nasdaq: WPTE) is listed as a media and entertainment company engaged in the development,production, and marketing of gaming-themed, televised programming; the licensing and sale of branded consumer products; and the sale of corporate sponsorships. WPTE was founded by CEO, Steve Lipscomb.

Ferguson, Raymer and Duke addressed the small media gathering at the Rio Resort with all stating the same bottom line, “We just want to play tournament poker without having to sign over all of our rights to WPTE.” The World Poker Tour requires all players to sign an agreement that grants WPTE unconditional rights to player’s names and images without any compensation to the player. The agreement allows WPTE to use a player’s images and name to promote and profit from sales of various WPT branded merchandise. Additionally, it places the players in jeopardy with their sponsor’s contracts. Players must sign the agreement are they cannot participate in WPT event’s that make up approximately 75% of all high stakes poker tournaments.

The suit also alleges that the WPTE and the participating casinos have conspired to eliminate competition for the services and intellectual property rights of the top high stakes poker players. Casinos that host a WPT event are excluded from staging any other poker tournament. It will be interesting to see how this event plays out.