Future of the World Poker Tour???

[Talk2BigSteve]

Lakes Entertainment might sell all or part of its stake in WPT Enterprises Inc. to raise funds to keep operating.
Casey Common , Star Tribune
Last update: November 23, 2005 at 10:45 PM

Casino developer Lakes Entertainment Inc. of Minnetonka said Wednesday that it is considering selling all or part of its majority stake in World Poker Tour operator WPT Enterprises Inc. to raise cash.

In a prepared statement released late Wednesday, Lakes said it needs $10 million in financing by Dec. 31 and another $10 million by March 1 to keep operating.

WPT, based in Los Angeles, created the World Poker Tour, a televised tournament on cable's Travel Channel that's credited with sparking the current Texas Hold 'Em poker boom. Both WPT and Lakes are controlled by Minnetonka businessman Lyle Berman, who is CEO of Lakes and chairman of both companies. Berman is also Lakes' largest shareholder.

Lakes owns a 61.9 percent stake in WPT, or about 12.5 million shares. At WPT's closing price of $7.60 a share Wednesday, Lakes' stake in WPT would be worth $95 million.

WPT was a Lakes subsidiary until going public at $8 a share in a 2004 initial public offering. The stock has slid steadily since July, when it reached a high of $29.50 amid speculation over a possible buyout by poker star Doyle Brunson. On Wednesday it set a 52-week low of $5.90 before rising to close with a 28 percent gain.

Lakes also said Wednesday that it believes it has resolved a dispute with the Securities and Exchange Commission over its accounting for casino-related loans to Indian tribes. Lakes said it will restate its financial results for 2002 and 2003, and it now expects to file its long-delayed annual report for 2004 next week.

Lakes did not say what impact the restatement would have on its financial results.

The Nasdaq Stock Market delisted Lakes' stock in August because of the company's late filings. The stock, now traded over the counter, closed Wednesday at $8.10 a share, up 5 cents.

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