$10m franchise pulls out of online deal with software giants
Monday 20th October 2008
On Friday the WPT filed a notice stating that they were terminating the agreement previously made with online casino software leaders Cryptologic and WagerLogic Ltd.
The filing went on to say that the 'Company will no longer operate the WPT-branded online gaming website on the Cryptologic network after November 14th, 2008.'
In 2007, the three originally entered a three-year deal. In 2006, the WPT had decided to create their own software for the online poker room. They licensed a software platform and hired 30 employees in Israel to 'develop the software and support infrastructure.'
The Cryptologic-powered room launched in June 2007 and earlier this year the WPT extended their agreement to 2011. According to a previous filing with the SEC, the deal called for Cryptologic to receive a minimum guaranteed payment of $750,000 per year. If the revenues generated in the business were lower than that amount, then the World Poker Tour would be forced to make up the difference.
