SEC Drops Investigation of Online Poker Room, World Poker TourGambling911.com can reveal that the SEC has dropped its investigation into online poker room Doyle's Room and the World Poker Tour. Doyle's Room is from the namesake of poker legend Doyle Brunson and was forced to leave the US market earlier this year.
The SEC had been looking at whether Brunson and company broke federal securities laws with the offer itself and then the publication of the bid via Brunson's website.
This was the fallout for Brunson from the $700 million bid for World Poker Tour operator WPT Enterprises Inc. The bid surprised many and sent the company's stock value through the roof. The dramatic jump in value immediately drew the attention of the SEC with investigations starting soon after.
Brunson, who asserted his fifth amendment right to protection to investigators, is one poker's biggest names and also one of poker's most popular players. When rumors spread of the possible buy-out, WPTE's stock jumped nearly 50 percent.
Unfortunately for both parties, just as quickly as rumors began to fly about the acquisition, the deal began to fall apart. Some of these rumors quickly appeared to become fact as the Brunson's law firm for the deal, Goodman & Chesnoff, withdrew from the bid negotiations, sending prices spiraling downward.
The World Poker Tour will be participating in this weekend's CAP Spring Break festivities in the Bahamas.
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Christopher Costigan, Gambling911.com
Originally published June 7, 2007 11:26 am ET
