World Poker Tour Enterprise, Inc. (WPTE) is the company that organizes the WPT tournaments. The company is listed on the NASDAQ Stock Exchange, where it is being traded for less than $1 since July 1, 2008.
Thereby it has violated NASDAQ’s requirement that a stock cannot close below $1.00 for 30 consecutive business days. Hence NADAQ has sent it a notice to demonstrate compliance within 180 days by ensuring that the stock trade above $1.00 for ten consecutive business days.
The sorry state of WPTE reflects the poor expectations that the investors hold about the future of the poker industry. It has been generally accepted that the growth in the online poker industry has led to resurgence in live poker, with many online players now participating in live tournaments. With the UIGEA threatening to end Internet gambling the future is bleak for live poker as well and WPTE is a casualty.
WPTE is hopeful that the strategy it has charted out will ensure compliance with NASDAQ regulations, but only time will tell.